Skip to content

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?

See Related Articles

Tax Data by State

Get facts about taxes in your state and around the U.S.

Explore Data

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

All Related Articles

Do taxes affect where people move? Do taxes affect interstate migration?

How Do Taxes Affect Interstate Migration?

The latest IRS and Census data show that people and businesses favor states with low and structurally sound tax systems, which can impact the state’s economic growth and governmental coffers.

7 min read
Wireless taxes cell phone tax rates by state 2022 taxes, fees, and surcharges on wireless service 2023 wireless excise tax rates on cellular service

Excise Taxes and Fees on Wireless Services Drop Slightly in 2023

To alleviate the regressive impact on wireless consumers, states should examine their existing communications tax structures and consider policies that transition their tax systems away from narrowly based wireless taxes and toward broad-based tax sources.

18 min read
House GOP Tax Plan: Details & Analysis

Do People Really Move Because of Taxes?

What do The Rolling Stones, NFL star Tyreek Hill, and Maryland millionaires have in common? They all moved because of taxes.

4 min read
2024 State Business Tax Climate Index

2024 State Business Tax Climate Index

In recognition of the fact that there are better and worse ways to raise revenue, our Index focuses on how state tax revenue is raised, not how much. The rankings, therefore, reflect how well states structure their tax systems.

111 min read
Tax treatment of electric vehicles ev taxes by state 2023 vehicle registration fees and EV tax credits

How Are Electric Vehicles Taxed in Your State?

The state EV taxation landscape reflects the evolving transportation sector and the pressing need to address both fiscal gaps in road funding and environmental concerns.

4 min read
State semiconductor incentives and subsidies in the wake of the federal CHIPS Act or CHIPS and Science Act R&D legislation

States Enact Semiconductor Subsidies in the Wake of CHIPS

Policymakers at all levels of government should avoid the pitfalls of incentives. Instead, they should focus on creating a more efficient, neutral, and structurally sound tax code to the benefit of all types of business investment.

6 min read