Arizona Take-Home Pay Calculator
Estimate your Arizona paycheck using AZ's flat 2.5% state income tax rate — the lowest of any state that taxes wages — plus federal income tax and FICA.
What comes out of an Arizona paycheck
Arizona completed its move to a flat tax for the 2023 tax year, replacing a progressive system that topped out at 4.5%. At 2.5%, it's the lowest flat income tax rate of any state that taxes wages at all — only the handful of states with zero income tax (Texas, Florida, Tennessee, Washington, and others) charge less. Arizona's standard deduction conforms closely to the federal amount each year.
AZ-taxable income: $80,000 − $4,000 pre-tax − $15,000 standard deduction = $61,000. AZ tax: $61,000 × 2.5% = $1,525.
Federal tax (on $61,000 taxable) ≈ $8,334 · AZ state tax ≈ $1,525 · Social Security $4,960 · Medicare $1,160.
Annual take-home ≈ $60,021 → about $2,309 per biweekly paycheck (75.0% of gross).
How Arizona got to 2.5%
Arizona's 2021 tax reform originally planned a gradual phase-down toward a flat rate, contingent on state revenue growth. Revenue came in strong enough to trigger the full transition faster than expected, and Arizona reached its target 2.5% flat rate for the 2023 tax year — years ahead of the original conservative timeline. The rate has held steady at 2.5% since, through 2025 and into 2026.
Common mistakes when estimating Arizona take-home pay
- Assuming Arizona still uses progressive brackets. That system was fully replaced starting with the 2023 tax year — Arizona has been flat-taxed since.
- Forgetting the standard deduction reduces taxable income first. Applying 2.5% to gross wages instead of wages minus the deduction overstates the tax owed.
- Expecting a local city income tax. Arizona law doesn't allow cities or counties to levy their own income tax on wages.
Frequently asked questions
What is Arizona's state income tax rate?
A flat 2.5% for both 2025 and 2026 — the lowest flat rate of any U.S. state that taxes wages.
When did Arizona switch to a flat tax?
Arizona reached its 2.5% flat rate for the 2023 tax year, ahead of schedule, after state revenue growth triggered a faster phase-down.
Does Arizona have local city income tax?
No — Arizona doesn't allow cities or counties to levy their own income tax on wages.
Does filing status change Arizona's flat tax rate?
The 2.5% rate stays the same, but the standard deduction roughly doubles for married couples filing jointly.
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Note: Simplified estimate using 2025 state and federal figures; excludes credits and benefit specifics. Not tax advice. Figures: 2025 Arizona and federal tax year. Last reviewed: September 2026.