Worked examples
What your salary leaves after taxes in Arizona (2026)
Arizona's flat 2.5% income tax is the lowest of any state that taxes wages. The rate applies after a standard deduction that matches the federal amount ($16,100 single / $32,200 married), and no local income tax exists anywhere in the state. For most earners, Arizona's take-home is within $2,000 of a zero-income-tax state.
| Gross salary | Federal tax | FICA | AZ 2.5% | Take-home | Eff. rate |
|---|---|---|---|---|---|
| $50,000 | $3,820 | $3,825 | $848 | $41,508 | 17.0% |
| $75,000 | $7,670 | $5,738 | $1,473 | $60,120 | 19.8% |
| $100,000 | $13,170 | $7,650 | $2,098 | $77,082 | 22.9% |
Single filer, federal-matching standard deduction $16,100, 2026 federal brackets. No local income tax.
How Arizona went from 4.5% to 2.5%
Arizona's rate compression happened rapidly. In 2020, the state had progressive brackets topping out at 4.5%. Proposition 208 (2020) attempted to add a 3.5% surcharge on high earners, but the legislature responded by consolidating all brackets into a single flat 2.5% rate effective 2023, which also rendered the surcharge moot. The result: Arizona's income tax dropped to a level that makes it competitive with zero-tax states for practical purposes.
The trade-off is that Arizona relies more heavily on sales tax. The state sales tax rate is 5.6%, and when combined with city/county rates, the total can exceed 10% in some Phoenix-area jurisdictions. Sales taxes are regressive and hit lower-income earners harder as a share of income.
Monthly and biweekly at $65,000
| Period | Gross | Take-home |
|---|---|---|
| Annual | $65,000 | $52,585 |
| Monthly | $5,417 | $4,382 |
| Bi-weekly | $2,500 | $2,023 |
| Weekly | $1,250 | $1,011 |
Arizona versus other flat-tax states
Arizona's 2.5% is the clear leader among flat-tax states. At $100,000, you keep $77,082 in Arizona versus $76,230 in Indiana (2.95%), $76,110 in Pennsylvania (3.07%), and $74,400 in Massachusetts (5%). The gap widens further at higher incomes where the flat rate produces dollar-for-dollar savings. Only the nine states with zero income tax offer more take-home pay.
Questions
Arizona salary after taxes FAQ
How much is a $65,000 salary after taxes in Arizona?
A single filer earning $65,000 in Arizona takes home about $52,585 per year after federal income tax, FICA and the flat 2.5% AZ state tax. That works out to roughly $4,382 per month or $2,023 biweekly. Arizona's 2.5% is the lowest flat rate of any state that taxes wage income.
Why is Arizona's tax rate so low?
Arizona compressed its previous multi-bracket system into a single flat 2.5% rate through Proposition 208 fallout and legislative action in 2021-2022. The rate dropped from 4.5% (pre-2020) through intermediate steps to 2.5% by 2023. Arizona offsets the low income tax with a state sales tax of 5.6% plus local additions, which can push combined sales tax rates above 10% in some cities.
Does Arizona have local income taxes?
No. Arizona does not levy any local, city or county income taxes. The flat 2.5% state rate is the only income tax on wages. Phoenix, Tucson and other cities collect their own sales/transaction privilege taxes but no payroll-based income tax.
How does Arizona compare to no-income-tax states like Texas?
Arizona's 2.5% rate is very close to zero. On $100,000, you keep $77,082 in Arizona versus about $79,180 in Texas or Florida (no state income tax). The difference is about $2,098 per year or $175 per month. Arizona partly compensates through lower property taxes than Texas, which averages about 1.6% versus Arizona's roughly 0.6%.
What is Arizona's standard deduction for 2026?
Arizona matches the federal standard deduction: $16,100 for single filers and $32,200 for married filing jointly in 2026. This generous deduction means the 2.5% rate only applies to income above these thresholds, making Arizona's effective state tax rate even lower than 2.5%.
What is the effective tax rate on $50,000 in Arizona?
A single filer earning $50,000 in Arizona pays about $8,492 in combined federal, FICA and state taxes, for an effective rate of 17.0%. Take-home is roughly $41,508 or about $3,459 per month. Arizona has the lowest effective rate of any flat-tax state at every salary level.
Does Arizona tax retirement income?
Social Security is fully exempt from Arizona state tax. Pension, 401(k) and IRA distributions are taxed at the flat 2.5% rate after the standard deduction. Arizona also offers a $2,500 exemption for military retirement pay. The low rate makes the retirement tax burden very light.
How much does a $100,000 salary leave after taxes in Arizona?
A single filer earning $100,000 in Arizona takes home about $77,082 after federal tax, FICA and the 2.5% state tax. That is roughly $6,424 per month. This is the highest take-home of any flat-tax state and only about $2,100 less than a zero-income-tax state like Texas.
- Sources: Arizona Dept. of Revenue (2.5% flat, federal-matching standard deduction) · IRS Rev. Proc. 2025-32 · SSA 2026 wage base $184,500 · Tax Foundation 2026 state tax data.
- 🔄 Last updated July 2026 · Tax year 2026
← Salary calculator · AZ calculator · Colorado after taxes · Texas · $100K after taxes