Arizona
What's New
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blog
October 17, 2018Low-Tax States Are Often High-Tax for the Poor
A new ITEP analysis reveals that many states traditionally considered to be “low-tax states” are actually high-tax for their poorest residents. The “low tax” label is typically assigned to states…
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blog
October 2, 2018Twelve States Offer Profitable Tax Shelter to Private School Voucher Donors; IRS Proposal Could Fix This
A proposed IRS regulation would eliminate a tax shelter for private school donors in twelve states by making a commonsense improvement to the federal tax deduction for charitable gifts. For…
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report
June 27, 2018The Other SALT Cap Workaround: Accountants Steer Clients Toward Private K-12 Voucher Tax Credits
On May 23, 2018, the IRS and Treasury Department announced that they “intend to propose regulations addressing the federal income tax treatment of certain payments made by taxpayers for which…
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ITEP Work in Action
May 30, 2018Center on Budget and Policy Priorities: Arizona Proposal Would Finance School Funding Boost, Make Tax Code Less Regressive
The measure would also make Arizona’s tax code somewhat less regressive. Currently, the poorest 20 percent of households pay 12.5 percent of their annual income to state and local taxes… -
blog
May 1, 2018Newly Unveiled Ballot Initiative Aims to Tax Arizona’s Top 1 Percent to Fund Education
Today marks Day 4 of the Arizona teachers’ walkout. After decades of tax cuts and underfunding of public education, education advocates are now driving the debate and urging lawmakers to act.… -
blog
December 14, 2017Private Schools Donors Likely to Win Big from Expanded Loophole in Tax Bill
For years, private schools around the country have been making an unusual pitch to prospective donors: give us your money, and you’ll get so many state and federal tax breaks…
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report
December 14, 2017Tax Bill Would Increase Abuse of Charitable Giving Deduction, with Private K-12 Schools as the Biggest Winners
In its rush to pass a major rewrite of the tax code before year’s end, Congress appears likely to enact a “tax reform” that creates, or expands, a significant number… -
blog
May 17, 2017Investors and Corporations Would Profit from a Federal Private School Voucher Tax Credit
A new report by the Institute on Taxation and Economic Policy (ITEP) and AASA, the School Superintendents Association, details how tax subsidies that funnel money toward private schools are being… -
report
May 17, 2017Public Loss Private Gain: How School Voucher Tax Shelters Undermine Public Education
One of the most important functions of government is to maintain a high-quality public education system. In many states, however, this objective is being undermined by tax policies that redirect…
By the Numbers
| Personal Income Tax Features | |
|---|---|
| Range of Tax Rates | 2.59% - 4.54% |
| Standard Deduction |
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| Personal Exemption | $2,100 (Extra $2,100 for Married Couples With Children and Heads of Housholds) |
| Dependent Exemption | None |
| Earned Income Tax Credit (EITC) | None |
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| Corporate Income Tax Features | |
|---|---|
| Range of Tax Rates | Deduction for state income taxes paid |
| Income Level at Which Top Rate Applies | Offers low-income credit designed to offset personal income taxes |
| Combined Reporting | 6%, phasing-down to 4.9% by 2017 |
| Apportionment Factor (Payroll) | All |
| Apportionment Factor (Property) | Yes |
| Apportionment Factor (Sales) | 25% |
| Sales Tax Features | |
|---|---|
| State Sales Tax Rate | 5.60% |
| Average Local Sales Tax Rate | 1.60% |
| Average Combined State & Local Sales Tax Rate | 7.20% |
| State Sales Tax Treatment of Groceries | Exempt |
| Local Sales Tax Treatment of Groceries | Taxed |
| Number of Services Taxed | 55 out of 168 surveyed (2007) |
| Streamlined Sales Tax Membership | No |
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| Property Tax Features | |
|---|---|
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| Other Tax & Revenue Features | |
|---|---|
| Gasoline Tax Rate (per gallon) | $0.19 |
| Diesel Tax Rate (per gallon) | $0.19 |
| Cigarette Tax Rate (per pack) | $2.00 |
| Estate or Inheritance Tax | No |
| Net Lottery Sales Per Capita | $80 (2010) |
| Tax Policy Oversight | |
|---|---|
| Tax Expenditure Report | Yes |
| Tax Incidence Analysis Capability | Personal income tax only |
Last updated January 13, 2015
RESOURCES
State Tax & Revenue Information
Tax Expenditure Reports
State Statutes & Legislation
State Tax Forms
State Legislative Summaries
- Arizona House of Representatives Summary of Legislation 2016
- Arizona Senate Summary of Legislation 2016 Previous Sessions