Arizona Tax & Salary Calculators (2026)
Everything you need to work out pay and tax as a Arizona resident in 2026, in one place. Arizona applies a flat 2.50% income tax after a $16,100 state standard deduction. Federal income tax and FICA (6.2% Social Security up to $184,500 plus 1.45% Medicare) apply on top, identically in every state — the Arizona layer is what makes your net pay different from a neighbour's.
Arizona has one of the lowest flat state income tax rates in the country at just 2.5%, fully phased in in 2023. Cost of living in Arizona sits at index 103 (US average = 100), median household income is $74,568, and a one-bedroom apartment in Phoenix rents for around $1,450 per month. The local economy leans on tech, aerospace, and healthcare.
Arizona calculators
Arizona income tax brackets 2026 (single filer)
| Taxable income | Rate |
|---|---|
| $0 and up | 2.50% |
Arizona tax facts beyond income tax (2026)
| State sales tax | 5.6% |
| Avg. effective property tax | 0.62% of home value |
| Minimum wage 2026 | $15.15 / hour |
| Top state income tax rate | 2.50% |
| Reciprocity agreements | California, Indiana, Oregon, Virginia |
Arizona charges a 5.6% state sales tax, homeowners pay an average effective property tax of 0.62% of market value, and the minimum wage in force during 2026 is $15.15 an hour. Combined transaction privilege tax averages about 8.4%.
Arizona adds no state-mandated employee payroll deduction beyond federal FICA, so your gross-to-net gap comes only from federal tax and Arizona income tax.
Arizona exempts Social Security and up to $2,500 of federal, state and Arizona local pension income; other retirement income is taxed at the flat rate.
Commuting and remote work across Arizona lines
Arizona holds income-tax reciprocity agreements with California, Indiana, Oregon and Virginia. If you commute between them, your wages are taxed only by your state of residence — file the exemption certificate with your employer so the wrong state is not withheld from every paycheck.
If you work remotely for an out-of-state employer, the state where you physically sit normally has the first claim on your wages, while your employer may still be required to register for Arizona withholding. Keep a day-count record whenever you split the year between Arizona and Nevada.
Arizona vs Nevada: $75,000 salary compared
| Measure | Arizona | Nevada |
|---|---|---|
| Annual take-home | $60,120 | $61,593 |
| Effective tax rate | 19.8% | 17.9% |
| Cost-of-living index | 103 | 102 |
| Property tax rate | 0.62% | 0.55% |
| State sales tax | 5.6% | 6.85% |
The paycheck difference is $1,473 a year on a $75,000 salary, but the full picture depends on housing: a one-bedroom in Phoenix runs about $1,450 a month, and property and sales taxes shift the balance again. See the Nevada hub for the mirror view.