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Taxes In Arizona

Arizona Tax Rates, Collections, and Burdens

How does Arizona’s tax code compare? Arizona has a flat 2.50 percent individual income tax. Arizona has a 4.90 percent corporate income tax rate, a 5.60 percent state sales tax rate, a max local sales tax rate of 5.30 percent, and a 8.37 percent combined state and local sales tax rate. Arizona’s tax system ranks 19th overall on our 2024 State Business Tax Climate Index.

Each state’s tax code is a multifaceted system with many moving parts, and Arizona is no exception. The first step towards understanding Arizona’s tax code is knowing the basics. How does Arizona collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures: How Does Your State Compare?

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Tax Data by State

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State Tax Data

Individual Taxes

Top Individual Income Tax Rate
2.5%See Full Study
State Local Individual Income Tax Collections per Capita
$635Rank: 38
State and Local Tax Burden
8.7%Rank: 6See Full Study

Business Taxes

Top Corporate Income Tax Rate
4.9%See Full Study
State Business Tax Climate Index Ranking
19See Full Study

Sales Taxes

State Sales Tax Rate
5.60%Rank: 28See Full Study
Average Local Sales Tax Rate
2.77%See Full Study
Combined State and Average Local Sales Tax Rate
8.37%Rank: 11See Full Study
State and Local General Sales Tax Collections per Capita
$1742Rank: 6
State Gasoline Tax Rate (cents per gallon)
19.00¢Rank: 47
State Cigarette Tax Rate (dollars per 20-pack)
$2Rank: 18

Property Taxes

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value
0.63%Rank: 40
State and Local Property Tax Collections Per Capita
$1206Rank: 35

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