Arizona rules
How Arizona taxes your paycheck in 2026
Arizona completed its move to a 2.5% flat income tax — the lowest flat rate among states that tax wage income. The Arizona Department of Revenue applies this rate after a standard deduction that matches the federal amount, so your effective state rate is very low across the board.
The 2.5% flat rate
Every dollar of Arizona taxable income is taxed at 2.5%. Arizona's standard deduction mirrors the federal figure (about $16,100 single / $32,200 married in 2026), which this calculator applies before the rate. The result is one of the gentlest income-tax bites in the country.
| Gross salary | AZ state tax (≈2.5%) | Est. take-home |
|---|---|---|
| $50,000 | ~$848 | ~$41,300 |
| $65,000 | ~$1,223 | ~$51,400 |
| $100,000 | ~$2,098 | ~$77,000 |
| $150,000 | ~$3,348 | ~$110,000 |
After the federal-matching standard deduction. Single filer, 2026 federal brackets and FICA.
Comparing Arizona to other states
Arizona's 2.5% is the lowest flat rate going, beating North Carolina and Pennsylvania. Only the no-tax states like Texas and Florida keep more of your paycheck.
Questions
Arizona salary calculator FAQ
What is the Arizona income tax rate for 2026?
Arizona has a flat individual income tax of 2.5% — the lowest flat rate of any state that taxes wage income — administered by the Arizona Department of Revenue. It applies after a standard deduction that matches the federal amount.
How much is taken out of a paycheck in Arizona?
An Arizona paycheck is reduced by federal income tax, 6.2% Social Security, 1.45% Medicare and the flat 2.5% state income tax. On a $65,000 single salary, total deductions are roughly 20% to 22%.
Does Arizona have a standard deduction?
Yes. Arizona's standard deduction matches the federal figure — about $16,100 for single filers and $32,200 for married couples filing jointly in 2026 — and is subtracted before the 2.5% flat rate applies.
What is the take-home pay on $65,000 in Arizona?
A single filer earning $65,000 in Arizona takes home roughly $51,400 a year after federal tax, FICA and the 2.5% state income tax. Arizona's low rate means more of your salary stays in your pocket.
- Sources: Arizona Department of Revenue (2.5% flat rate) · IRS Rev. Proc. 2025-32 · SSA 2026 wage base.
- 🔄 Last updated June 9, 2026 · Tax year 2026
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