Side-by-side tax comparison between Arizona (2.5% top rate) and Colorado (4.4% top rate).
| Salary | Arizona | Colorado | Difference | Winner |
|---|---|---|---|---|
| $50K | $41,360 | $40,648 | −$713 | Arizona |
| $75K | $59,896 | $58,828 | −$1,069 | Arizona |
| $100K | $77,015 | $75,590 | −$1,425 | Arizona |
| $150K | $110,634 | $108,496 | −$2,138 | Arizona |
| $200K | $145,353 | $142,503 | −$2,850 | Arizona |
Arizona offers higher take-home pay at every salary level. Arizona's 2.5% top rate is more favorable than Colorado's 4.4%. At $100K, the difference is $1,425/year — that’s $119/month.
However, cost of living matters. Arizona has a cost index of 97 while Colorado is at 105. With similar costs of living, the tax difference is the main factor.