Find a calculator
Tax Year 2026Updated July 21, 2026

Arizona Income Tax Rate 2026

Arizona imposes a flat 2.50% state income tax - one of the lowest flat income tax rates in the country. Arizona taxable income starts from federal AGI; Arizona's own subtraction (HB 4168) removes the federal tips, overtime, and senior deductions from Arizona income as well. Use the calculators below to estimate your Arizona tax liability for 2026.

State Income Tax
Flat 2.50%
Standard Deduction
$16,100 (single)

Arizona Income Tax 2026

Arizona applies a flat 2.50% to Arizona taxable income, which is computed as federal AGI plus or minus Arizona modifications. Arizona conforms to the 2026 federal standard deduction ($$16,100 single / $32,200 MFJ) via SB 1171. Arizona has no personal exemption.

OBBBA Conformity - Arizona Subtracts the Deductions (HB 4168)

Arizona's return starts from federal adjusted gross income (Form 140, line 12). The federal tips, overtime, and senior deductions are figured on Schedule 1-A after AGI, so they do not reduce that figure. HB 4168 (Laws 2026, Chapter 140, approved June 13, 2026) added Arizona subtractions for the same amounts (A.R.S. 43-1022), retroactive to taxable years beginning after December 31, 2024.

For 2025, the subtraction is entered on Form 140, page 6, line V (Other Adjustments). Form 140A and Form 140EZ cannot be used when making adjustments to income. Source: HB 4168, Chapter 140.

Arizona Tax Calculators

Arizona Paycheck CalculatorArizona Tips TaxArizona Overtime Tax

Frequently Asked Questions

Does Arizona have a state income tax?
Yes. Arizona imposes a flat state income tax rate of 2.50% on taxable income for TY2026.
What is Arizona's income tax rate for 2026?
Arizona has a flat state income tax rate of 2.50% - one of the lowest flat income tax rates in the United States. The rate applies to Arizona taxable income, which starts from federal adjusted gross income (AGI) with Arizona-specific additions and subtractions. Arizona conforms to the federal standard deduction ($16,100 for single filers in 2026) via SB 1171.
Does Arizona conform to the OBBBA tips and overtime deductions?
Yes, through Arizona's own subtraction. HB 4168 (Laws 2026, Chapter 140, approved June 13, 2026) added Arizona subtractions for the amounts deducted federally for qualified tips (IRC §224), qualified overtime (IRC §225), and the senior deduction (IRC §151(d)(5)(C)), for taxable years beginning after December 31, 2024. Arizona starts from federal AGI, which these deductions do not reduce, so the subtraction is what provides the benefit. For 2025 it is claimed on Form 140, page 6, line V.
How does Arizona withholding work - what is the supplemental rate?
Arizona uses an elective withholding system. Employees select their withholding percentage using Form A-4 (Arizona Withholding Percentage Election). Options are 0.5%, 1.0%, 1.5%, 1.8%, 2.5%, 3.0%, or 3.5% of gross wages. For supplemental wages (bonuses), employers may use the employee's elected A-4 rate or a default of 2.0%. There is no single mandatory Arizona supplemental withholding rate.