Try a calculator
Tax Year 2026Updated July 21, 2026

Arizona Paycheck Calculator 2026

Arizona uses a flat income tax rate of 2.50% on all taxable income. Unlike states with graduated brackets, every dollar you earn above the exemption threshold is taxed at the same rate. Combined with federal income tax and FICA deductions, use the calculator below to see your actual take-home pay per pay period.

Arizona's Flat Income Tax

Arizona levies a flat 2.50% income tax on all taxable income. There are no progressive brackets - whether you earn $30,000 or $300,000, the state rate is the same. This simplifies withholding calculations compared to graduated-bracket states.

Retirees may benefit from partial pension income exclusions.

How Your Arizona Paycheck Is Calculated

  1. Gross pay: Your annual salary divided by the number of pay periods.
  2. Federal income tax: 2026 progressive brackets (10%-37%) after the federal standard deduction of $16,100 (single) or $32,200 (MFJ).
  3. Social Security: 6.2% on wages up to $184,500.
  4. Medicare: 1.45% on all wages, plus 0.9% above $200,000 (single).
  5. Arizona state income tax: Flat 2.50% on taxable income.

Arizona Standard Deduction

Arizona's standard deduction for 2026 is $16,100 for single filers and $32,200 for married filing jointly. This is subtracted from gross income before Arizona's tax brackets are applied. Note: the state deduction is separate from and much smaller than the federal standard deduction of $16,100.

Retirement Income in Arizona

Arizona offers a partial exclusion for pension and retirement income. Some retirement income may be exempt or receive preferential treatment depending on the source and amount. Arizona does not tax Social Security benefits. Government pension income (from Arizona state/local public retirement systems) receives a limited exclusion of $2,500 per year. Military retirement pay is fully exempt. Private pensions and IRA distributions are generally fully taxable at the 2.5% flat rate.

Worked Examples

Example 1: $55,000/year - Single, Semi-monthly

Profile: $55,000 annual salary, Single filer, paid semimonthly (24 paychecks/year)

Gross per period: $2,291.67
Federal income tax: -$184.17
Social Security: -$142.08
Medicare: -$33.23
Arizona state income tax: -$57.29
Net take-home pay: $1,874.90 per paycheck ($44,998/year)
Effective total tax rate: 18.19%

Example 2: $85,000/year - Head of Household, Biweekly

Profile: $85,000 annual salary, Head of Household filer, paid biweekly (26 paychecks/year)

Gross per period: $3,269.23
Federal income tax: -$267.23
Social Security: -$202.69
Medicare: -$47.40
Arizona state income tax: -$81.73
Net take-home pay: $2,670.18 per paycheck ($69,425/year)
Effective total tax rate: 18.32%

Example 3: $78,000/year - Married Filing Jointly, Monthly

Profile: $78,000 annual salary, Married Filing Jointly filer, paid monthly (12 paychecks/year)

Gross per period: $6,500.00
Federal income tax: -$416.67
Social Security: -$403.00
Medicare: -$94.25
Arizona state income tax: -$162.50
Net take-home pay: $5,423.58 per paycheck ($65,083/year)
Effective total tax rate: 16.56%

Arizona Tax Notes

  • Flat tax rate: 2.50% on all taxable income.

Arizona does not impose local income taxes. Cities and counties levy local Transaction Privilege Tax (TPT) rates on top of the 5.6% state rate, ranging from 0% to 5.6%. The combined rate in some localities can exceed 11%. Food for home consumption is exempt from state TPT but local cities may still tax it.

OBBBA Conformity

Arizona conforms to the federal OBBBA deductions for tips and overtime. These deductions reduce both your federal and Arizona state taxable income.

Frequently Asked Questions

What taxes are deducted from my Arizona paycheck?
Your Arizona paycheck has deductions for federal income tax (10%-37% progressive brackets), FICA (Social Security + Medicare), and Arizona state income tax at a flat rate of 2.50%.
How accurate is this paycheck calculator?
This calculator estimates take-home pay using 2026 federal and Arizona state tax rates. It models federal income tax, FICA, and state income tax. It does not include pre-tax deductions (401(k), HSA, health insurance premiums), post-tax deductions, or state-specific payroll taxes (disability insurance, paid leave). Your actual paycheck may differ.
How does Arizona's flat income tax work?
Arizona uses a flat tax rate of 2.50% that applies to all taxable income regardless of how much you earn. Unlike graduated-bracket states where higher income is taxed at higher rates, every dollar of taxable income in Arizona is taxed at the same rate.
Is Arizona's flat tax rate applied to all my income?
The flat rate applies to your taxable income, which is your gross income minus any applicable deductions or exemptions. Arizona provides a standard deduction that reduces taxable income. The flat rate does not apply to income below these thresholds.
Is my pension or retirement income taxed in Arizona?
Arizona offers a partial exclusion for pension and retirement income. Some retirement income may be exempt or receive preferential treatment depending on the source and amount. Social Security benefits are not taxed at the state level.
Does Arizona conform to the OBBBA overtime and tips deductions?
Yes. Arizona conforms to the federal OBBBA deductions for tips and overtime. These deductions reduce both your federal and Arizona state taxable income, giving you a double benefit.