Arizona has a progressive income tax system with rates ranging from 2.55% to 4.5%, making it a relatively low-tax state in the Southwest. Our free Arizona paycheck calculator shows your exact take-home pay after federal taxes, Arizona state tax, and FICA deductions. Whether you're considering a move to the Grand Canyon State, comparing job opportunities in Phoenix or Tucson, or budgeting your current Arizona salary, get accurate results based on 2025 tax rates.
Arizona Tax System Overview
Arizona uses a progressive income tax system with four tax brackets:
2025 Arizona Tax Brackets (Single Filer)
| Income Range | Tax Rate | Tax Amount |
|---|---|---|
| $0 - $28,653 | 2.55% | Up to $731 |
| $28,654 - $71,634 | 3.34% | Up to $2,167 |
| $71,635 - $179,084 | 4.17% | Up to $6,652 |
| $179,085+ | 4.50% | $6,652+ |
- Standard Deduction: $14,600 (single), $29,200 (married filing jointly)
- Personal Exemption: $2,500 per person
- No Local Income Tax: Cities and counties cannot impose income taxes
- Retirement-Friendly: No tax on most retirement income
Sample Arizona Paycheck Calculations
Here's how much you'll take home at different salary levels in Arizona:
$65,000 Annual Salary
- Gross Pay: $65,000
- Federal Tax: $7,217
- AZ State Tax: $1,708
- FICA Taxes: $4,973
- Take-Home Pay: $51,102 (78.6%)
- Monthly Net: $4,259
- Bi-weekly Net: $1,965
$90,000 Annual Salary
- Gross Pay: $90,000
- Federal Tax: $12,879
- AZ State Tax: $2,640
- FICA Taxes: $6,885
- Take-Home Pay: $67,596 (75.1%)
- Monthly Net: $5,633
- Bi-weekly Net: $2,600
$130,000 Annual Salary
- Gross Pay: $130,000
- Federal Tax: $22,044
- AZ State Tax: $4,260
- FICA Taxes: $9,945
- Take-Home Pay: $93,751 (72.1%)
- Monthly Net: $7,813
- Bi-weekly Net: $3,606
Arizona vs. Neighboring States
Compare Arizona's tax burden with surrounding states:
Arizona ($90k salary)
- Take-home: $67,596
- Effective rate: 24.9%
- State tax: $2,640
- Low-moderate tax burden
California ($90k salary)
- Take-home: $64,323
- Effective rate: 28.5%
- State tax: $5,916
- AZ Saves: $3,273/year
Understanding Arizona Paycheck Deductions
Arizona State Income Tax
Arizona's progressive tax system offers competitive rates:
- Progressive Rates: 2.55% to 4.5% depending on income level
- Standard Deduction: $14,600 (single), $29,200 (married)
- Personal Exemption: $2,500 per person
- Dependent Exemption: $2,500 per dependent
Arizona Retirement Tax Benefits
Arizona is very retirement-friendly:
- Social Security: Not taxed by Arizona
- Pension Income: Generally not subject to state income tax
- 401(k) & IRA: Distributions generally not taxed
- Military Retirement: Military retirement pay is exempt
Phoenix vs. Rest of Arizona
Tax rates are the same statewide, but cost of living varies:
Phoenix Metro
- State tax: 2.55-4.5%
- Cost of living: Higher
- Job market: Diverse, tech growing
- Housing: More expensive
Tucson/Rural Arizona
- State tax: 2.55-4.5%
- Cost of living: Lower
- Job market: Limited but affordable
- Housing: Very affordable
Frequently Asked Questions
Does Arizona tax retirement income?
No, Arizona does not tax most retirement income including Social Security, pensions, 401(k) withdrawals, and IRA distributions, making it very retirement-friendly.
Are there local income taxes in Arizona?
No, Arizona law prohibits local governments from imposing income taxes. This keeps the tax system simple with just state and federal taxes.
How does Arizona compare to California for taxes?
Arizona has significantly lower income taxes than California. A typical middle-income earner can save $3,000+ annually by living in Arizona instead of California.
Tax Planning Tips for Arizona Residents
Take Advantage of Low Tax Rates
Arizona's competitive rates make it attractive for income growth. Consider maximizing earnings while benefiting from lower state taxes.
Plan for Retirement in Arizona
Arizona's exemption of retirement income makes it an excellent state for retirement planning and retirement relocation.
Consider Arizona for Business
Arizona's business-friendly tax environment and low personal income taxes make it attractive for entrepreneurs and business owners.
Ready to Calculate Your Arizona Take-Home Pay?
Use our calculator above to see exactly how much you'll keep from your paycheck in Arizona.