Estimate your take-home pay in Arizona for 2026. The state levies income tax with a top rate of 2.5% (Flat rate of 2.5%). This means a portion of every paycheck goes toward state income tax in addition to federal withholding, Social Security, and Medicare.
Arizona Tax Snapshot
- State Income Tax
- 2.5% top rate
- Sales Tax (state + local avg)
- 8.37%
- Avg Property Tax Rate
- 0.62%
- Median Home Value
- $389,900
- State Minimum Wage
- $14.70/hr
Did You Know?
Arizona moved to a flat 2.5% income tax rate in 2023.
How Arizona Taxes Affect Your Paycheck
When you earn a paycheck in Arizona, your employer withholds federal income tax, Social Security (6.2%), and Medicare (1.45%). On top of that, the state withholds income tax based on flat rate of 2.5%. The state minimum wage is $14.70 per hour, which sets the floor for hourly workers. Understanding these deductions helps you budget effectively and plan for the average 0.62% property tax rate on homes valued around $389,900.
Arizona also levies a combined state and average local sales tax of 8.37%, which affects your overall purchasing power. Factor this into your budget when calculating how far your paycheck stretches.