Estimate your combined federal and Arizona state income tax liability in under 60 seconds. Updated with the latest 2026 brackets and FICA rates.
Arizona has a flat income tax rate of 2.5% for the 2026 tax year. Arizona adopted a flat income tax rate of 2.5% starting in 2023, making it one of the lowest flat-rate income tax states in the nation.
Understanding how your state tax brackets work is essential for effective tax planning. Since Arizona uses a flat rate, calculating your state tax is straightforward — simply multiply your taxable income by 2.5%.
| Tax Rate | Income Range | Tax Owed |
|---|---|---|
| 2.5% | Above $0 | $0 + 2.5% of amount over $0 |
Source: Arizona Department of Revenue. Brackets shown for single filers, tax year 2025 (filed in 2026).
Sales Tax: Arizona has a state sales tax rate of 5.6%. Local jurisdictions may add additional sales tax.
Federal income tax applies to all U.S. taxpayers regardless of state. Below are the 2026 federal brackets for single filers.
| Rate | Single Filer Income Range |
|---|---|
| 10% | $0 – $11,925 |
| 12% | $11,925 – $48,475 |
| 22% | $48,475 – $103,350 |
| 24% | $103,350 – $197,300 |
| 32% | $197,300 – $250,525 |
| 35% | $250,525 – $626,350 |
| 37% | Above $626,350 |
The standard deduction for single filers in 2026 is $15,000. Married filing jointly: $30,000.
Source: IRS Revenue Procedure for tax year 2025.
FICA taxes fund Social Security and Medicare and are calculated on gross wages before deductions.
| Tax | Rate | Wage Base |
|---|---|---|
| Social Security | 6.2% | First $168,600 |
| Medicare | 1.45% | All wages |
| Additional Medicare | 0.9% | Wages above $200,000 |
The minimum wage in Arizona for 2026 is $14.70/hour. At full-time hours (40 hours/week, 52 weeks), this equals approximately $30,576/year before taxes.
The median household income in Arizona is approximately $72,600, based on U.S. Census Bureau American Community Survey estimates. Use the calculator above to see how your income compares after federal and state taxes.
Starting a business in Arizona requires filing Articles of Organization with the state. Here are the key costs:
| Item | Cost | Frequency |
|---|---|---|
| Articles of Organization Filing | $50 | One-time |
| No annual report required | N/A | N/A |
| Registered Agent | $0 – $150/yr | Yearly |
Source: Arizona Secretary of State.
Northwest Registered Agent handles all the paperwork for $39 + state fee. Includes free registered agent service for the first year, privacy protection, and compliance alerts.
Start My Arizona LLCArizona has a flat income tax rate of 2.5% for the 2026 tax year (single filers).
Arizona has a state sales tax rate of 5.6%. Local jurisdictions may add additional sales tax.
The minimum wage in Arizona for 2026 is $14.70 per hour.
Filing an LLC in Arizona costs $50 for the Articles of Organization. No annual report required.
The median household income in Arizona is approximately $72,600, based on U.S. Census Bureau estimates.