Many people are beginning to wrap their minds around the House Republicans’ proposed destination-based cash-flow tax and what it means for tax reform. Most people are still looking into the tax’s impacts on trade and how...
The facts on Arizona’s Tax Climate
4.54%individual income taxTop rate
5.5%corporate income taxFlat rate
$1,009property taxcollections per capita
Arizona's Individual Income Tax System
Arizona's individual income tax system consists of five brackets with a top rate of 4.54%. The top rate ranks 38th highest among states levying an individual income tax. Arizona's state and local tax collections per person were $512 in 2013, which ranked 41st highest nationally.
50-State Table of Individual Income Tax Rates
Arizona's Corporate Income Tax System
Arizona's corporate income tax system consists of a flat rate of 5.5%. That rate ranks 37th highest among states levying a corporate income tax. Arizona's state and local corporate income tax collections per person were $100 in 2013 which ranked 36th highest nationally.
50-State Table of Corporate Income Tax Rates
Arizona Sales and Excise Taxes
Arizona levies a 5.6% general sales or use tax on consumers, which is below the national median of 5.95%. The average local sales tax rate is an additional 2.6%. Arizona's state and local governments collect $1,361 per person in general sales taxes and $304 per person in excise taxes, for a combined figure of $1,665, which ranks 18th highest nationally. Arizona's gasoline tax stands at 19 cents per gallon, 43rd highest nationally, while its cigarette tax stands at $2.00, 11th highest nationally.
50-State Table of State and Local Sales Tax Rates
Arizona Property Tax Collections Average
Arizona's state and local governments collected approximately $1,009 per person in property taxes in 2013, which ranks 33rd nationally.
For 50-state tables of property tax collections, visit our latest web edition of Facts & Figures, or download our mobile app for Apple and Android.
Tax Freedom Day Arrives on April 15th in Arizona
Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Arizona taxpayers have to work until April 15th (16th earliest nationally) to pay their total tax bill.
Arizona's State and Local Tax Burden Ranks 36th
Arizona's 2016 Business Tax Climate Index Ranks 24th
Arizona ranks 24th on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (22nd), individual income taxes (19th), sales taxes (49th), unemployment insurance taxes (9th), and taxes on property (6th), including residential and commercial property.
State Business Tax Climate Index (full study)
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