Arizona
What's New
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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…
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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…
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ITEP Work in Action
January 24, 2017The Arizona Center for Economic Progress: Questions and Answers About Arizona’s State Budget and Taxes 2017
State budgets and taxes are the foundation for achieving our common priorities that will lead to more quality jobs, a strong economy, and thriving communities. This publication provides information and…
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ITEP Work in Action
October 21, 2015Children’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… -
ITEP Work in Action
October 21, 2015Children’s Action Alliance: Questions and Answers About Arizona’s State Budget and Taxes
State budgets and taxes are tools to reach our common goals for health, education, security and a vibrant, prosperous future. This publication provides information and analysis to help policymakers,… -
report
September 17, 2015Low Tax for Whom?: Arizona is a “Low Tax State” Overall, But Not for Families Living in Poverty
Annual data from the U.S. Census Bureau appears to lend support to Arizona's reputation as a "low tax state," ranking it 37th nationally in taxes collected as a share of…
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ITEP Work in Action
March 6, 2015Children’s Action Alliance: HB 2069 – S/E Online TPT/Income Tax Reduction Fact Sheet
HB 2069 shifts taxes from the wealthiest Arizonans to low and middle income taxpayers, attempts to limit options available to future legislatures, and depends on a “best guess” to make… -
ITEP Work in Action
January 21, 2015Arise Citizens’ Policy Project: Study on Alabama’s tax system: The less you make, the bigger share you pay
Low- and middle-income Alabamians pay more than twice as much in taxes as a share of their income compared to the state’s wealthiest residents, according to a study released Wednesday… -
report
January 14, 2015Who Pays? 5th Edition
Who Pays?, A Distributional Analysis of the Tax Systems in All Fifty States (the fifth edition of the report), assesses the fairness of state and local tax systems by measuring…
By the Numbers
| Personal Income Tax Features (2015) | |
|---|---|
| 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 (2015) | |
|---|---|
| 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 (2015) | |
|---|---|
| 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 (2015) | |
|---|---|
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| Other Tax & Revenue Features (2015) | |
|---|---|
| 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