AZ

Arizona Paycheck Calculator

See exactly what you take home after federal taxes, Arizona state income tax, Social Security, and Medicare. Updated for 2026.

State tax: 2.5% SS: 6.2% Medicare: 1.45% 2026 brackets
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1099 freelancer note: You owe both halves of Social Security & Medicare — that's 15.3% self-employment tax on top of income tax. Quarterly estimated payments due Apr 15, Jun 16, Sep 15, Jan 15.
Arizona state income tax (2026) Arizona moved to a flat 2.5% rate in 2023 — one of the lowest flat rates.
Flat 2.5% on all taxable income

Arizona Income Tax Explained (2026)

Arizona has a state income tax with a flat 2.5% structure. Workers earning typical wages generally pay an effective state rate between 2.0% and 2.5% depending on income and deductions. Understanding how Arizona's tax works helps you accurately predict your take-home pay and plan your withholding.

Arizona residents also pay federal income tax (10%–37%), Social Security (6.2% up to $184,500), and Medicare (1.45%). The combination of federal and state taxes is the primary driver of the gap between your gross pay and your actual paycheck.

How Arizona compares to neighboring states

California
Up to 13.3%
Much higher
Nevada
No income tax
Lower
New Mexico
Up to 5.9%
Higher top rate
Utah
4.85% flat
Similar flat rate

What taxes come out of a Arizona paycheck?

A Arizona W-2 employee's paycheck is reduced by federal income tax (progressive 10%–37%), Arizona state income tax (flat 2.5%), Social Security at 6.2% on wages up to $184,500, and Medicare at 1.45% on all wages. High earners above $200,000 also pay an additional 0.9% Medicare surtax on excess wages.

Arizona freelancers and 1099 contractors pay self-employment tax of 15.3% — covering both employee and employer portions of Social Security and Medicare — on top of both federal and state income taxes. Half of the self-employment tax is deductible from federal adjusted gross income, reducing the effective burden slightly. Arizona freelancers must also make quarterly estimated state tax payments.

Arizona tax tips for 2026

  • Flat rate: Arizona moved to a 2.5% flat income tax in 2023 — one of the lowest flat rates in the nation. All Arizona taxable income above the standard deduction is taxed at the same 2.5% rate regardless of income level.
  • Standard deduction: Arizona's standard deduction for 2026 is $13,850 for single filers and $27,700 for married filing jointly — aligned with federal amounts.
  • Arizona withholding: Arizona allows you to choose your state withholding percentage (0.8%–3.6% of gross wages). Make sure your employer withholds enough to cover your ~2.5% liability.
  • Freelancers: Arizona requires quarterly estimated payments if you expect to owe more than $1,000 in state tax. Use Arizona Form 140ES.

Frequently asked questions

Arizona has a flat 2.5% state income tax rate for all taxable income. This applies to all filers regardless of income level. Arizona adopted this flat rate in 2023, replacing a previous multi-bracket system. With the 2.5% flat rate, Arizona has one of the lowest state income tax rates in the country.
For a single filer in Arizona earning $75,000 in 2026: after the standard deduction (~$13,850), taxable income is ~$61,150. At 2.5%, state tax is approximately $1,529. Combined with federal tax (~$10,294), Social Security ($4,650), and Medicare ($1,088), total deductions are ~$17,561. Take-home is approximately $57,439/year or $2,209 bi-weekly.
Arizona does not tax Social Security retirement benefits. If your only income is Social Security, you likely owe no Arizona state income tax. Other retirement income such as pension distributions and IRA withdrawals is taxable at Arizona's 2.5% flat rate, though there are some exemptions for government pension income.
Arizona's 2.5% flat rate is dramatically lower than California's progressive rates that reach 13.3% for top earners. On a $100,000 salary, an Arizona resident pays roughly $2,163 in state income tax vs. approximately $6,200 for a California resident — a savings of over $4,000 per year. This difference grows with income.
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