Arizona state income tax: Tax rate and brackets for 2023-2024
State personal income tax is not regulated by the Internal Revenue Service (IRS), rather by state departments of revenue. Arizona taxes, in particular, are regulated by the Arizona Department of Revenue. Arizona individual income tax rates vary depending upon marital status, location, and income.
How is the Arizona state income tax different from other states? Many states have a progressive tax structure, meaning various tax rates apply based on your income and filing status.
Arizona used to be one of those states with a progressive state tax structure. Before 2022, AZ tax rates ranged from 2.59% to 4.5%. In 2022, Arizona reduced its brackets to two: 2.55% and 2.98%. In 2023, Arizona state switched to a flat tax rate of 2.5%.
Arizona state tax rate and filing deadlines
Overall, income taxes in Arizona tend to be lower than federal tax rates. As mentioned above, Income earned in Arizona is taxed at one flat rate. And, among states with a flat tax rate, Arizona’s is the lowest.
The flat Arizona income tax rate of 2.5% applies to taxable income earned in 2023, which is reported on your 2024 state tax return. The due dates for your state income tax return generally follow the federal tax deadline.
Who pays Arizona state income tax?
Whether you will need to pay taxes depends on your situation, but you may need to file even if you don’t owe taxes. Whether or not you have to file an Arizona state income tax return will depend on your gross income, tax filing status, and residency.
If you are a full-year or part-year Arizona resident, you will have to file this tax year if your gross income exceeds the standard deduction for your filing status.
Arizona State Tax Filing Statuses and Standard Deductions
|
Filing status | Gross income |
|
Single |
$13,850 |
|
Married Filing Jointly |
$27,700 |
|
Married Filing Separately |
$13,850 |
|
Head of Household |
$20,800 |
Arizona state tax rate 2023 for nonresidents
The filing rules for nonresidents are more complicated. Nonresidents must divide their Arizona gross income by their federal Adjusted Gross Income to figure out their filing requirements. Get more guidance on Arizona Tax Form 140-NR.
More help with Arizona tax brackets and filing
Understanding your tax obligation can be time-consuming. What takes even more time is deducting Arizona tax from your federal taxes as an itemized deduction using the SALT deduction.
So, get help filing tax forms with H&R Block. You can file with H&R Block Online or with a tax pro in an office or from your home with H&R Block Virtual. With this service, we’ll match you with a tax pro with Arizona state tax expertise. Then, you will upload your tax documents, and our tax pros will do the rest! We can help with your AZ taxes, including federal deductions for paying state taxes and other tax credits and deductions you qualify for.
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