ArizonaSalary Calculator 2026 — Take-Home Pay After Federal & State Taxes

Arizona moved to a flat 2.5% income tax rate in 2023, one of the lowest flat rates in the country. Proposition 208 (the 3.5% surcharge on income over $250,000) was struck down, and subsequent legislation set the 2.5% flat rate for all taxpayers. For 2026, most Arizona workers pay a predictable 2.5% on taxable income — making take-home pay easy to estimate. Arizona also allows a standard deduction ($13,850 single in 2025, indexed annually). The state's low flat rate makes Arizona particularly attractive for higher-income earners who would face higher marginal rates in progressive states. Phoenix and Tucson have no local income taxes. Combined with warm weather and relatively moderate cost of living, Arizona's tax environment has attracted significant corporate and individual migration.