Arizona charges 2.5% flat state income tax. Use the employer cost calculator pre-loaded with Arizona rates.
Open Employer Cost Calculator →Employers in Arizona must withhold and remit the flat 2.5% state income tax, plus handle their share of FICA, FUTA, and Arizona's state unemployment insurance. The total cost to employ someone at a $75,000 salary in Arizona is typically 10-15% above the gross salary, covering the employer's payroll tax share, SUI, workers' comp, and benefits. This calculator breaks down the full employer cost with Arizona's specific tax rates.
Arizona levies a flat 2.5% state income tax on all taxable income regardless of how much you earn. This makes tax planning straightforward: for every additional dollar you earn, 2.5 cents goes to Arizona. Arizona does not impose local income taxes, so the 2.5% flat rate is the only state-level income tax you owe.
The table below shows what you actually keep at five salary levels in Arizona, accounting for federal tax, FICA, and Arizona's flat 2.5% state tax.
See how Arizona compares to other West states. Each link takes you to the employer cost calculator landing page for that state.
For a comprehensive breakdown of Arizona’s tax structure, salary comparisons, cost-of-living analysis, and more, visit the full Arizona take-home pay page.