Overview of Arizona Taxes: Taxpayers in Arizona face below-average income tax rates and property tax rates, along with low gas taxes. But the state’s average sales tax rate is among the highest in the country.
Your 2025 Estimated State Income Tax:
Breakdown of Your Income Taxes
Your Annual Take-Home Pay
About This Calculator
Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions.
How Income Taxes Are Calculated
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First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
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Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer.
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Based on your filing status, your taxable income is then applied to the tax brackets to calculate your federal income taxes owed for the year.
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Your location will determine whether you owe local and / or state taxes.
When Do We Update? - We check for any updates to the latest tax rates and regulations annually.
Customer Service - If you would like to leave any feedback, feel free to email info@smartasset.com.
Assumptions
Deductions
- "Other Pre-Tax Deductions" are not used to calculate state taxable income.
Credits
- The only federal credit automatically calculated is the Savers Credit, depending on your eligibility.
- We do not apply any refundable credits, like the Child Tax Credit or Earned Income Tax Credit (EITC).
- We do not apply state credits in our calculations.
Itemized Deductions
- If itemizing at the federal level, you may need to itemize at the state level too. Some states don't allow itemized deductions, which is accounted for in our calculations.
- When calculating the SALT deduction for itemized deductions, we use state and local taxes, and we assume your MAGI.
- We assume that there is no cap to itemized deductions, if a state allows them.
- We do not categorize itemized deductions (such as medical expenses or mortgage interest), which could be subject to specific caps per state.
Local Tax
- Depending on the state, we calculate local taxes at the city level or county level. We do not include local taxes on school districts, metro areas or combine county and city taxes.
- With the exception of NYC, Yonkers, and Portland/Multnomah County, we assume local taxes are a flat tax on either state taxable income or gross income.
Actual results may vary based on individual circumstances and changes in tax laws or IRS regulations. Estimates provided by this calculator do not guarantee income tax amounts or rates. Past performance is not indicative of future results.
SmartAsset.com does not provide legal, tax, accounting or financial advice (except for referring users to third-party advisers registered or chartered as fiduciaries ("Adviser(s)") with a regulatory body in the United States). Articles, opinions and tools are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual. Users should consult their accountant, tax advisor or legal professional to address their particular situation.
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Taxes in Arizona
Arizona State Tax Quick Facts
- Income tax: 2.5%
- Sales tax: 5.60% – 8.52%
- Property tax: 0.43% effective rate
- Gas tax: 19 cents per gallon of regular gasoline
Arizona has been one of the fastest growing states in recent years, as low taxes may have played a role in drawing people to the desert. Among U.S. states, Arizona has below-average income tax and property tax rates, and it has the fifth-lowest gas tax rate in the nation. On the other hand, when considering both statewide and local sales taxes, the Grand Canyon State has the 12th-highest combined sales tax rate in the country. In all, the effect of Arizona’s tax system varies depending on your specific financial circumstances.
A financial advisor can help you understand how taxes fit into your overall financial goals. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Arizona Sales Tax
You’ll have to pay state and local sales taxes on purchases made in Arizona. The statewide rate is 5.6%. When taking all local taxes into account, the state’s average rate is 8.19%, 12th-highest in the nation. The table below shows the combined state and county taxes for every county in Arizona.
Sales Tax Rates (Updated December 2025)
| County Name | Maximum Sales Tax Rate in County |
|---|---|
| Apache County | 12.1% |
| Cochise County | 9.9% |
| Coconino County | 12.9% |
| Gila County | 10.48% |
| Graham County | 9.1% |
| Greenlee County | 9.1% |
| La Paz County | 10.6% |
| Maricopa County | 15.3% |
| Mohave County | 8.6% |
| Navajo County | 12.43% |
| Pima County | 11.1% |
| Pinal County | 11.7% |
| Santa Cruz County | 9.6% |
| Yavapai County | 16% |
| Yuma County | 10.712% |
While most products purchased in the state will be subject to those rates, some items are exempt. Among the items exempt from sales tax in Arizona are groceries, prescription drugs and professional or personal services.
Arizona Property Tax
The typical homeowner pays $1,828 per year in property taxes in Arizona. The effective property tax rate (total taxes paid as a percentage of the median home value) is 0.43%.
Arizona’s sales tax may be on the higher side, but its property taxes are among the lowest in the nation. If you’re looking to refinance or relocate to Arizona, take a look at our guide to Arizona mortgage rates and getting a mortgage in the state.
Arizona Tobacco Tax
On a nationwide scale, Arizona taxes cigarettes at a high rate. In fact, the tax costs $2 per pack.
Arizona Estate Tax
There is no estate tax in Arizona.
Arizona Alcohol Tax
Arizona collects excise taxes on alcoholic beverages, depending on the type of product being sold. The tax is equal to $3.00 per gallon of liquor, 84 cents per gallon of wine and 16 cents per gallon of beer.