Children’s Action Alliance: Arizona’s Individual Income Tax

The balance and fairness of any tax system depends on the impact of all the taxes an individual or family pays. State and local sales taxes always take a bigger bite out of the income of taxpayers at the lowest income levels. Arizona’s graduated income tax partially offsets the impact of the sales tax on low-income taxpayers. The lowest income Arizonans pay $12.50 out of every $100 of income on state and local taxes while the wealthiest 1% pay only $4.60.