What's the effective tax rate in Arizona on a $100K single salary in 2026?

A $100,000 single filer in Arizona pays roughly $13,841 federal income tax + $7,650 FICA + ~$2,135 Arizona state tax = $23,626 total → 23.6% effective rate. Arizona standard deduction $14,600. Local + 401(k) reductions change this — use the calculator above for an exact verdict.

Does Arizona have tax reciprocity with neighboring states?

Yes — Arizona maintains state-level reciprocity with CA, IN, OR, VA (4 states). Cross-border workers from these states file only the resident-state return; the working state does not withhold income tax. Local taxes (city/county) typically fall outside reciprocity and apply regardless of resident state.

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Arizona Paycheck Calculator 2026 — Flat 2.5% Rate +4-state reciprocity

Drop your Arizona gross salary — get annual + monthly + bi-weekly take-home, full breakdown of federal + FICA + Arizona state tax, effective rate, and how you compare to the Arizona median household. Includes 2026 Arizona brackets from the Arizona Department of Revenue.

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Reviewed by CalcBold Editorial · Sources: IRS Pub 15-T 2026 (projected) + SSA wage-base 2026 + Arizona Department of Revenue — flat 2.5% individual income taxLast verified May 13, 2026Methodology

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How much do I take home in Arizona? — short answer first

Arizona transitioned from a 4-bracket progressive structure (2.59%-4.5%) to a flat 2.5% individual income tax under SB 1828, signed in 2021 and fully effective 2023. The phased transition replaced four brackets with a single rate — one of the cleanest tax simplifications among US states. Arizona conforms its standard deduction to the federal: $14,600 single / $29,200 joint (2024, with annual inflation indexing). This combination — low flat rate plus a generous standard deduction — makes Arizona one of the most attractive tax destinations for relocators from California (4-13.3%) and the Northeast. Arizona has no local income tax; Phoenix, Tucson, and Scottsdale fund themselves through property tax (~0.62% effective) and 8.4% combined sales tax.

The Arizona take-home pay formula

net_pay     = gross − federal_tax − fica − state_tax − local_tax − pre_tax
federal_tax = Σ (federal_bracket × rate) on (gross − std_dev − 401k − hsa)
fica        = MIN(wages, $181K) × 6.2% + wages × 1.45% + add'l Medicare
state_tax    = Σ (bracket_amount × bracket_rate)    // top rate 2.50% in Arizona
local_tax    = 0    // no local payroll tax in Arizona

The 2026 take-home calculation for Arizona stacks four mandatory deductions: federal income tax (7-bracket progressive), FICA (Social Security capped at $181K + uncapped Medicare), Arizona state income tax (1-bracket progressive, top rate 2.50%). Pre-tax 401(k) and HSA reduce federal taxable income; HSA additionally reduces FICA wages.

Source:Arizona Department of Revenue — flat 2.5% individual income tax· Arizona Department of Revenue (or equivalent)

How Arizona taxes payroll in 2026

Arizona levies a flat 2.5% individual income tax under ARS §43-1011, post-SB 1828 (2021). The legislation collapsed Arizona's previous 4-bracket structure (2.59%, 3.34%, 4.17%, 4.5%) into a single flat rate, phased in over 2022-2023 and fully effective 2023. The rate change was the largest single state tax cut in Arizona history. Critically, Arizona conforms its standard deduction to the federal Internal Revenue Code (IRC §63): single filers get the federal standard deduction (currently $14,600, 2024 inflation-adjusted; projected $15,000+ for 2026), and married-filing-jointly get $29,200 (projected $30,000+ for 2026). This puts Arizona's effective tax burden among the most competitive in the US for middle-income earners. A single Arizona filer earning $75,000 pays roughly: $75K - $15K standard deduction = $60K taxable × 2.5% = $1,500 in state income tax. Compare this to California ($75K → $3,400) or New York ($75K → $3,700) at the same gross. Arizona has NO local income tax anywhere in the state — Phoenix, Tucson, Scottsdale, Mesa, and Tempe all fund themselves through property tax (effective rate ~0.62% — below national average) and 8.4% combined sales tax (5.6% state + 2.8% county/city average). Arizona maintains reciprocity agreements with California, Indiana, Oregon, and Virginia — cross-border workers from these states file only home-state return. This makes Arizona a unique winner for snowbirds and California-fleeing tech workers: low income tax rate + reciprocity + federal-standard deduction + no local levy.

Arizona state income tax brackets (single filer, 2026)

Taxable income up to	Marginal rate
Above prior threshold	2.50%

Standard deduction (single): $14,600 · top marginal rate 2.50%. Married filing jointly + head of household brackets follow the same shape with adjusted thresholds.

Arizona city callouts

Phoenix + Scottsdale — Combined sales tax 8.6%; property tax ~0.59% effective; explosive tech and finance hiring growth post-2021.
Tucson — Combined sales tax 8.7%; property tax ~0.86% effective; meaningfully lower cost of living than Phoenix metro.
Sedona + Flagstaff (Northern AZ) — Property tax ~0.55%; sales tax 9.3-10.4% (high tourism rate); popular for retirees from Northeast.

Reciprocity + multi-state notes

Arizona has reciprocity agreements with California, Indiana, Oregon, and Virginia. Cross-border workers from these states file only state-of-residence. Submit Form WEC to your Arizona employer to halt AZ withholding when you're a CA/IN/OR/VA resident.

How to use this calculator

Enter your annual gross salary. Pre-tax, what your employer pays before any deductions.
Pick filing status. Single, married filing jointly, married filing separately, or head of household. Drives both federal and Arizona brackets.
Add 401(k) and HSA contributions (optional). Both lower your federal taxable income; HSA also lowers FICA wages.
Read the verdict. Annual + monthly + bi-weekly take-home, federal + state + local breakdown, and effective tax rate.

Common mistakes

Confusing gross with adjusted gross. The calculator wants your gross salary — what your employer pays before any pre-tax deductions or contributions. If you enter your W-2 Box 1 (already net of 401k), the math will under-count your tax.
Forgetting that 401(k) is still subject to FICA. Traditional 401(k) reduces federal income tax but NOT Social Security + Medicare. Only HSA (through payroll) reduces both.
Using the wrong filing status for state tax. Arizona uses the same filing status categories as the IRS, but bracket thresholds differ from federal. Pick the status that matches your actual tax filing — not just what gives the best number.
Ignoring multi-state implications. If you work in Arizona but live elsewhere (or vice versa), you may owe taxes in both states with a credit between them. This calculator assumes you both live and work in Arizona.

US payroll terminology — quick reference

Eight terms that show up on every payslip. Skim the snippet; expand the card for the longer explanation. Same terms apply across all 51 state-paycheck calculators — only the Arizona state line in each formula changes.

Quick reference

Payroll terminology — applies to Arizona

Gross Salary The headline number from your offer letter, before any deductions. The starting point for every paycheck calculation.: Lenders, landlords, and benefit calculations use gross. Always confirm whether a quoted figure is gross or net — the gap is typically 25-40% in the US once federal + FICA + state are stacked.
Net Take-Home Pay What lands in your bank account after federal + FICA + state + local + pre-tax deductions. The number to budget against.: For Arizona: gross − federal − FICA − Arizona state income tax − 401(k) − HSA.
FICA Federal Insurance Contributions Act — payroll tax funding Social Security (6.2% to $181K) + Medicare (1.45%, no cap). 7.65% combined.: Additional Medicare 0.9% applies above $200K single / $250K MFJ. Thresholds frozen since 2013, so an increasing share of earners hit it each year. HSA contributions (but NOT 401k) reduce FICA wages.
Source: SSA — Wage base & tax rates
Marginal Tax Rate The rate applied to your NEXT dollar of income. Drives the cost of a raise, bonus, or extra 401(k) contribution.: In Arizona, your combined marginal rate stacks federal (12-37%) + FICA (1.45-2.35%) + Arizona state (2.5%-2.5%). A six-figure earner often faces a 35-45% marginal rate.
Effective Tax Rate Total tax divided by gross income. The actual percentage of your salary that disappears to tax — always lower than marginal.: Two earners at the same gross can have different effective rates depending on pre-tax contributions. Use effective rate for affordability comparisons; use marginal for raise / bonus decisions.
Standard Deduction Fixed amount subtracted from gross before federal brackets apply. 2026: $15,750 single · $31,500 MFJ · $23,625 HoH.: Arizona's state standard deduction (single) is $14,600 — applied independently before state brackets. Federal and state standard deductions stack; you do not have to itemize on one to claim the other.
Source: IRS Rev. Proc. 2024-40
Pre-Tax Deductions Amounts subtracted from gross BEFORE income tax is computed — 401(k), traditional IRA via payroll, HSA, FSA, employer health premiums.: Reduces federal taxable income dollar-for-dollar. HSA also reduces FICA wages (the 'triple advantage'). Traditional 401(k) reduces federal tax but NOT FICA — Roth 401(k) reduces neither but grows tax-free.
Arizona State Tax Progressive 1-bracket state income tax. Top rate 2.50%. Filed on Arizona Department of Revenue.: Brackets refresh annually — most state DORs publish updates in Q4 preceding the tax year. Arizona's structure is a flat rate, with separate filing-status schedules for MFJ and HoH.
Source: Arizona Department of Revenue — flat 2.5% individual income tax

Methodology & Sources

Federal income tax + FICA: IRS Pub 15-T 2026 projected brackets + Social Security Administration 2026 wage base ($181,000) + Medicare 1.45% (no cap) + Additional Medicare 0.9% above $200K/$250K thresholds. Arizona state income tax: Arizona Department of Revenue — flat 2.5% individual income tax — last verified 2026-05-13. Brackets refresh annually — most state DORs publish updates in Q4 preceding the tax year. Federal 2026 figures are projected from 2025 (Rev. Proc. 2024-40) with ~2.5% inflation adjustment; refresh against IRS October release.

Frequently asked questions

When did Arizona become a flat-tax state?

Arizona transitioned to a flat 2.5% rate effective 2023, under SB 1828 (signed 2021). The legislation phased out a 4-bracket structure (2.59%-4.5%) over 2022-2023. The 2.5% rate is now permanent in the state code (ARS §43-1011) — not subject to revenue triggers or annual reviews. It's one of the cleanest tax simplifications among US states.

Does Arizona's standard deduction really match federal?

Yes — Arizona conforms its standard deduction to IRC §63 via ARS §43-1042. 2024 standard deduction is $14,600 single / $29,200 joint; 2026 projected ~$15,000 / $30,000+ with annual inflation indexing. This is among the most generous among flat-tax states and meaningfully reduces effective tax for low-to-middle income filers.

Are there any local income taxes in Arizona?

No — Arizona has no local income tax at any city, county, or municipality level. Phoenix, Tucson, Scottsdale, Mesa, and Tempe all fund local services through property tax (effective ~0.62% statewide) and 8.4% combined sales tax average (5.6% state + 2.8% local). This is rare for Southwest states (CA has SDI, NM has many local levies).

Is Arizona really better than California for retirees and tech workers?

Usually yes. A $150K single Arizona filer pays ~$3,375 state income tax (2.5% × $135K after standard deduction). A $150K California single filer pays ~$11,200 state tax — net difference $7,800/yr. Combined with lower property tax (0.62% vs CA 0.71%) and no SDI surcharge, Arizona is one of the most attractive relocation destinations for California natives.

Want to compare Arizona take-home pay against another state? Use the national take-home pay calculator with a flat-rate state input. To see what you'd save by changing your 401(k) contribution, drop the gross salary into the salary-to-hourly calculator. For cost-of-living adjustments when comparing jobs across states, the cost of living calculator adjusts for housing + groceries + tax differences between metros.

Frequently Asked Questions

The most common questions we get about this calculator — each answer is kept under 60 words so you can scan.

What's the effective tax rate in Arizona on a $100K single salary in 2026?
A $100,000 single filer in Arizona pays roughly $13,841 federal income tax + $7,650 FICA + ~$2,135 Arizona state tax = $23,626 total → 23.6% effective rate. Arizona standard deduction $14,600. Local + 401(k) reductions change this — use the calculator above for an exact verdict.
Does Arizona have tax reciprocity with neighboring states?
Yes — Arizona maintains state-level reciprocity with CA, IN, OR, VA (4 states). Cross-border workers from these states file only the resident-state return; the working state does not withhold income tax. Local taxes (city/county) typically fall outside reciprocity and apply regardless of resident state.
When did Arizona become a flat-tax state?
Arizona transitioned to a flat 2.5% rate effective 2023, under SB 1828 (signed 2021). The legislation phased out a 4-bracket structure (2.59%-4.5%) over 2022-2023. The 2.5% rate is now permanent in the state code (ARS §43-1011) — not subject to revenue triggers or annual reviews. It's one of the cleanest tax simplifications among US states.
Does Arizona's standard deduction really match federal?
Yes — Arizona conforms its standard deduction to IRC §63 via ARS §43-1042. 2024 standard deduction is $14,600 single / $29,200 joint; 2026 projected ~$15,000 / $30,000+ with annual inflation indexing. This is among the most generous among flat-tax states and meaningfully reduces effective tax for low-to-middle income filers.
Are there any local income taxes in Arizona?
No — Arizona has no local income tax at any city, county, or municipality level. Phoenix, Tucson, Scottsdale, Mesa, and Tempe all fund local services through property tax (effective ~0.62% statewide) and 8.4% combined sales tax average (5.6% state + 2.8% local). This is rare for Southwest states (CA has SDI, NM has many local levies).
Is Arizona really better than California for retirees and tech workers?
Usually yes. A $150K single Arizona filer pays ~$3,375 state income tax (2.5% × $135K after standard deduction). A $150K California single filer pays ~$11,200 state tax — net difference $7,800/yr. Combined with lower property tax (0.62% vs CA 0.71%) and no SDI surcharge, Arizona is one of the most attractive relocation destinations for California natives.