Arizona Income Tax Calculator 2026

How Arizona's flat tax is calculated

Arizona taxes all taxable income at a single 2.5% rate. Taxable income is your federal adjusted gross income, plus or minus Arizona adjustments, less the standard deduction ($15,750 single, $31,500 married filing jointly, $23,625 head of household) or itemized deductions, less any Arizona exemptions. Credits then come off the tax.

For a single filer on $45,000 the math is ($45,000 − $15,750) × 2.5% = $731, an effective rate of 1.63%.

Worked example: married couple with two children

A married couple filing jointly on $120,000 of wages with two children under 17 subtracts the $31,500 joint standard deduction, leaving $88,500 of taxable income. At 2.5% that is $2,213. The dependent tax credit of $125 per child under 17 cuts it to $1,963, or 1.64% of income. Older dependents earn a smaller $25 credit, and the dependent credit phases out for high incomes.

Income Arizona lets you subtract

Arizona Revised Statutes §43-1022 lists the subtractions. The ones most households use are:

• Social Security and railroad retirement benefits included in federal income are fully subtracted.
• U.S. uniformed services retired pay: the full amount, for tax years after 2020.
• Federal, Arizona state, county, city and town government pensions: up to $2,500 in total.
• Active-duty, reserve and National Guard pay, to the extent not already excluded federally.
• Qualified tips and qualified overtime compensation deducted on the federal return (from tax year 2025).
• Contributions to any state's 529 college savings plan, within annual limits.
• Dependent-care expenses above the amount covered by the federal credit (from tax year 2026).

Arizona exemptions for age and blindness

Arizona keeps a few dollar exemptions that reduce taxable income: $2,100 for each taxpayer or spouse who is 65 or older, $1,500 for blindness, $2,300 for a person 65 or older whose nursing or medical care you pay for (over $800 a year), and $10,000 for a parent or grandparent 65 or older who lives with you all year and needs help with daily activities, if you pay more than half their support.

Filing deadline, residency and other-state credits

Arizona returns for calendar-year filers are due on April 15, so 2026 returns are due April 15, 2027. Residents file Form 140; part-year residents and nonresidents with Arizona income use the part-year and nonresident versions and pay tax only on Arizona income.

Nonresidents who pay Arizona tax may claim a credit for income tax paid to their home state, but only if that state either does not tax Arizona residents on income earned there or gives Arizona residents a reciprocal credit. Residents who work in another state claim the opposite credit on their Arizona return. Because Arizona's rate is the lowest flat rate in the country, the other state's tax usually wipes out the Arizona tax on the same income.