Arizona individual income tax
Arizona's individual income tax is a tax on all income earned by residents and income earned in Arizona by nonresidents of the state. The tax is based on the individual's federal-adjusted gross income, with rates ranging from 2.55% to 2.98%.
April 18
Return due in 2023
2.98%
Top marginal tax rate
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Pay income tax online
Visit the official state government’s website to pay individual income tax online.
Visit Arizona Taxes
What is Arizona income tax?
Individual income tax
Individual income tax is a type of direct tax levied by Arizona on individuals that meet the taxable criteria.
Taxable incomes
Arizona taxes incomes from wages, dividends, interests and capital gains.
Tax brackets
Arizona has 2 individual income tax brackets 2.55% to 2.98%.
Standard deduction
Standard deduction is $12,950 for singles, $25,900 for couples filing jointly and $19,400 for heads of the family, for the taxable year 2022.
Changes in 2023
For the taxable year 2022, Arizona has simplified thresholds to have only two brackets and reduced max rate from 4.5% to 2.98%
2022 tax rates
The following is the list of income tax rates for the tax year of 2022
| Arizona taxable income | Tax rate |
|---|---|
| $0 - $28,653 | 2.55% |
| $28,654+ | 2.98% |
Individual income tax
The State of Arizona requires you to pay taxes if you are a resident (regardless of the whether they were earned within the state or not) or a non-resident that earns income from Arizona.
Types of taxable incomes
The income types on which tax is levied are:
In Arizona, all types of income are generally subject to personal income tax unless they are specifically exempt by state law. This includes, but is not limited to, wages and salary, dividends, capital gains, royalties, and other types of income.
File return
To file a tax return in Arizona, taxpayers must complete and submit a tax return form. The tax return form requires taxpayers to report their taxable income and any credits or deductions they are eligible to claim. Taxpayers must also calculate their tax liability and pay any taxes owed by the due date.
Due
annually
Pay taxes
Taxes in Arizona are due by 18 April, 2023. Go to the official Arizona Department of Revenue website.
Type of tax
graduated tax
Due
annually
Deductions
Tax deductions are a reduction in the amount of income that is subject to taxation. It allows taxpayers to lower the amount of taxable income they have, which in turn reduces the amount of tax they owe. Tax deductions are available for a wide range of expenses, such as charitable donations, mortgage interest, medical expenses, and business expenses.
Standard deductions for single filers or married filers filing separately - $12,950
Standard deductions for married filers, filing jointly - $25,900
Standard deductions for head of households - $19,400
Credits
A tax credit allows taxpayers to reduce the amount of taxes they are required to pay. This is different from a tax deduction, which reduces the amount of income that is subject to taxation. Tax credits are applied directly to the tax liability, while deductions are applied to the taxable income.
Exclusions
Tax exclusions are an amount of money or income that is not subject to taxation. This means that taxpayers do not have to pay taxes on this income.
Residency
A resident of Arizona is someone who has made the state their permanent home, even if they are temporarily absent.
Arizona resident
A resident is a person who is permanently domiciled in Arizona, regardless of temporary absence in the state. In order to be considered a resident of Arizona, a person must demonstrate a permanent connection to the state.
Arizona residents are subject to state taxes on all income earned, regardless of where it was earned. That is, income earned outside Arizona is also taxable.
Arizona part-year resident
An Arizona Part-Year Resident is someone who moved into/moved out of the state during the tax year. Part-year residents are also subject to Arizona tax on :
Income earned after moving to Arizona
Income earned before leaving Arizona
Any income arising from Arizona before/after leaving
Arizona non-resident
An Arizona Nonresident is someone who does not have a permanent residence in the state.
Nonresidents who earn income from Arizona has to pay income taxes. If the same income is taxed in another state, one can avail tax credits.
Frequently asked questions
Business entities in Arizona
There are several business entities in Arizona
Arizona LLC
Page sponsorWhy we like StartGlobal?
My genuine thoughts
Willy Justin
Founder, Statepedia
StartGlobal: Legal + Taxes + Bookkeeping for solopreneurs
Product
For small businesses, managing taxes, accounting and everything legal is just a pain. Nobody wants to do it, but they have to. Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription. It’s just smooth.
Team
I know the team behind StartGlobal very well. It’s a very hardworking group of individuals who are genuinely passionate about small businesses. They are backed by successful founders like Balaji Srinivasan, Biz Stone(Twitter) and others.
Price
Getting a CPA or attorney is a matter of thousands of dollars. It’s just unfair to pay so much when you’re a small business. Start has a single subscription that covers it all. It is a definite money saver.
$599 one-time