Taxes in Arizona: Income, Sales, and Property Tax Guide
Top Income Tax Rate
2.5%
Combined Sales Tax
8.4%
Avg Property Tax Rate
0.5%
Median Household Income
$72,581
How Arizona Compares to National Average
IRS Statistics of Income Data
Average AGI
$54,200
Average Tax Liability
$6,900
Itemized Deduction Rate
25.0%
Avg SALT Deduction
$5,800
Avg Mortgage Interest Deduction
$9,500
Avg Charitable Deduction
$4,600
Source: IRS Statistics of Income (2022 tax year)
What This Means for You
With a top marginal rate of 2.5%, Arizona's income tax is below the national median. Combined with a 8.4% sales tax and 0.5% property tax rate, the overall tax burden in Arizona varies depending on your income, spending, and homeownership status.
Frequently Asked Questions
Does Arizona have an income tax?
Yes, Arizona has a state income tax with a top marginal rate of 2.5%.
What is the sales tax in Arizona?
The combined state and local sales tax rate in Arizona is approximately 8.4%.
How does Arizona compare to other states?
Visit our state comparison page or use the Compare tool to see how Arizona's tax burden compares to neighboring states and the national average.
Related Resources
Data sources: Tax Foundation (2024), IRS Statistics of Income (2022). TaxGrader is not a CPA, tax advisor, enrolled agent, or attorney. This content is for educational and informational purposes only.