Arizona

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By the Numbers

Personal Income Tax Features
Range of Tax Rates 2.59% - 4.54%
Standard Deduction
  • $5,009 ($10,010 for Married Couples) (2014)
  • 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
  • Notable capital gains preference
  • Deduction for state income taxes paid
  • Offers low-income credit designed to offset personal income taxes
  • 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
  • Sales tax is actually a Gross Receipts Tax (GRT)
  • Sales tax is actually a Gross Receipts Tax (GRT)
  • Sales tax is actually a Gross Receipts Tax (GRT)
  • Property Tax Features
  • Fails to provide a notable, all-ages circuit breaker.
  • Levies a modest statewide property tax.
  • Utilizes split roll system.
  • 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