Today, the Tax Foundation is honoring six individuals with the second annual award for Outstanding Achievement in State Tax Reform. As the award’s name suggests, the honorees were selected due to their extraordinary...
The facts on Arizona’s Tax Climate
4.54%individual income taxTop rate
6.5%corporate income taxFlat rate
$1103property taxcollections per capita
Arizona's Individual Income Tax System
Arizona's personal income tax system consists of five brackets and a top rate of 4.54%. That rate ranks 12th lowest among states levying an individual income tax. Arizona's state and local income tax collections per person were $445 in 2011 which ranked 10th lowest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Arizona's Corporate Income Tax System
Arizona's corporate income tax system consists of a flat rate of 6.5%. That rate ranks 22nd lowest among states levying a corporate income tax. Arizona's state and local corporate income tax collections per person were $87 in 2011 which ranked 18th lowest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
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 2.57%. Arizona's state and local governments collect $1276 per person in general sales taxes and $320 per person in excise taxes, for a combined figure of $1596, which ranks 9th highest nationally. Arizona's gasoline tax stands at 19¢ (9th lowest nationally), while its cigarette tax stands at $2 (11th highest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Arizona Property Tax Collections Average
Arizona's state and local governments collected approximately $1103 per person in property taxes, which ranks 20th lowest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 11th in Arizona
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2014, Arizona taxpayers worked until April 11th (15th earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: California, April 30th (ranked 4th latest nationally); Nevada, April 15th (ranked 25th latest nationally); Utah, April 17th (ranked 21st latest nationally); Colorado, April 22nd (ranked 13th latest nationally); and New Mexico, April 8th (ranked 7th earliest nationally).
Arizona's State and Local Tax Burden Below National Average
Arizona's 2011 tax burden of 8.9% ranks 17th lowest out of 50 states, and is below the national average of 9.8%. Arizona's taxpayers pay $3194 per capita in state and local taxes.
Arizona's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Arizona's 2014 Business Tax Climate Index Ranks 22
Arizona ranks 22nd in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: California, 48th, Nevada, 3rd, Utah, 9th, Colorado, 19th, and New Mexico, 38th.
50-State Comparison of Business Tax Climates (data only) (2013)
2014 State Business Tax Climate Index (full study)
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