Arizona charges 2.5% flat state income tax. Use the stock option tax calculator pre-loaded with Arizona rates.
Open Stock Option Tax Calculator →Stock option exercises in Arizona are subject to a flat 2.5% state income tax on top of federal tax. For NSOs, the spread at exercise is ordinary income subject to both federal and Arizona state tax plus FICA. For ISOs, while there is no regular tax at exercise, the spread counts for AMT purposes and for Arizona state tax calculations. This calculator helps you plan the optimal time and amount to exercise given Arizona's 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 stock option tax 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.