Taxes in Arizona

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 rank?  Below, we have highlighted a number of tax rates, ranks, and measures detailing Arizona’s income tax, business tax, sales tax, and property tax systems. Click the tabs below to explore!

Top Individual Income Tax Rate

4.5%

See Full Study

State and Local Individual Income Tax Collections per Capita

$574

Click for a comparative tax map!

State and Local Tax Burden

8.8%

Click for a comparative tax map!
See Full Study

Tax Freedom Day

April 9

Click for a comparative tax map!
See Full Study

Top Corporate Income Tax Rate

4.9%

See Full Study

State Business Tax Climate Index Ranking

27

See Full Study

State Sales Tax Rate

5.60%

Click for a comparative tax map!
See Full Study

Average Local Sales Tax Rate

2.77%

See Full Study

Combined State and Average Local Sales Tax Rate

8.37%

Click for a comparative tax map!
See Full Study

State and Local General Sales Tax Collections per Capita

$936

State Gasoline Tax Rate (cents per gallon)

19.00¢

Click for a comparative tax map!

State Cigarette Tax Rate (dollars per 20-pack)

$2

Click for a comparative tax map!

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value

0.64%

Click for a comparative tax map!

State and Local Property Tax Collections Per Capita

$1062

Featured Articles

Tax Trends at the Dawn of 2020

January 6, 2020

2019 State Business Tax Climate Index

September 26, 2018

Related Articles

Tax Trends at the Dawn of 2020

January 6, 2020

Arizona Delivers Rate Cuts and Tax Conformity

June 6, 2019

Arizona’s Dueling Proposals Could Clarify Tax Rules for Peer-to-Peer Car Sharing

May 13, 2019

Facts and Figures 2019: How Does Your State Compare?

March 19, 2019

Results of 2018 State and Local Tax Ballot Initiatives

November 6, 2018

Top State Tax Ballot Initiatives to Watch in 2018

October 22, 2018

Arizona Income Tax Increase Not on November Ballot

October 4, 2018

2019 State Business Tax Climate Index

September 26, 2018

Arizona Should Expand Its Sales Tax Base Instead of Raising the Rate

June 15, 2017

Arizona Governor Signs Bevy of Tax Bills, Offering Something for Everyone

May 25, 2017

Several States Will Start 2017 with Corporate Tax Reductions

December 30, 2016

Lunch Links: Questionable Trump Tax Maneuver to Avoid Debts Cited; Colorado Rebuts Arizona Ads Opposing State’s Marijuana Voter Proposition; Left’s Opposition to Washington Carbon Tax Criticized; Yale Daily News Endorsement Puts Tax Exemption at Risk

November 1, 2016

Top State Tax Ballot Initiatives to Watch in 2016

October 18, 2016

Five States to Vote on Legalizing and Taxing Marijuana

October 18, 2016

2017 State Business Tax Climate Index Released Today!

September 28, 2016

Lunch Links: Speaker Ryan Lays Out Vision for Tax Reform; Compromise Part of Latest New Jersey Tax Proposal; Pennsylvania Legislators Target Reduction of 40 Percent E-Cigarette Tax; Rundown of Marijuana Ballot Propositions in Five States

September 21, 2016

Lunch Links: Trump Expected to Announce New Tax Plan Details Tonight; NY Times, WashPost Say They Would Publish Trump’s Tax Returns No Matter How Obtained; Arizona Voters Uncertain on Ending State Income Tax; IRS Raps On Nelly

September 13, 2016

Lunch Links: Massachusetts Marijuana Initiative Gets Clarification; Alabama Starts Tax Amnesty; Why Arizona Sales Tax is High

July 8, 2016

Lunch Links: Europeans Say 14 States are Tax Havens, Trump Tax Returns, No Tax Powers for Arizona Developers

May 11, 2016

Which States Have the Worst Sales Tax Administration?

October 30, 2015