[{"data":1,"prerenderedAt":34},["ShallowReactive",2],{"state-content-arizona":3},{"id":4,"title":5,"body":6,"description":26,"extension":27,"meta":28,"navigation":29,"path":30,"seo":31,"stem":32,"__hash__":33},"states\u002Fstates\u002Farizona.md","Arizona Tax Overview",{"type":7,"value":8,"toc":22},"minimark",[9,13,16,19],[10,11,12],"p",{},"Arizona has a flat income tax rate of 2.5%, which took effect in 2023 after a multi-year legislative push to consolidate the state's prior bracket system. At 2.5%, Arizona now has one of the lowest state income tax rates in the country among states that do tax wages. For context, neighboring California's top rate is 13.3% and Nevada has no income tax at all.",[10,14,15],{},"Before the flat rate, Arizona had a graduated system with a top rate of 4.5%. The move to 2.5% was a significant cut for middle and upper-income earners. A worker earning $80,000 now owes approximately $2,000 in Arizona state income tax, compared to around $3,300 under the old structure.",[10,17,18],{},"Arizona does not allow itemized deductions on the state return to the same extent as the federal return, but the standard deduction is adjusted annually for inflation. One quirk: Arizona conforms to federal bonus depreciation rules, which matters more for business owners than wage earners. For W-2 workers, the calculation is straightforward.",[10,20,21],{},"Phoenix and other major Arizona cities do not levy a local income tax, so the 2.5% flat rate is the entirety of state and local income tax for most residents. The combination of a low flat rate, no local income taxes, and no estate tax makes Arizona one of the more tax-friendly states for workers in most income ranges.",{"title":23,"searchDepth":24,"depth":24,"links":25},"",2,[],"How Arizona's income tax affects your paycheck","md",{},true,"\u002Fstates\u002Farizona",{"title":5,"description":26},"states\u002Farizona","Vw6yM2CfKlbmpATvN9sOEiE7I5g9kX3iL2p2hcoMlzM",1776796069583]