Institute on Taxation and Economic Policy (ITEP)

Arizona

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State Child Tax Credits Will Boost Financial Security for Families and Children in 2027

• By Neva Butkus

Sixteen states provide Child Tax Credits to reduce poverty, boost economic security, and invest in children. State lawmakers have several options to maximize the impact of Child Tax Credits.

Arizona Center for Economic Progress: What Does a Strong Arizona Economy Actually Look Like?

• By ITEP Staff

The Institute on Taxation and Economic Policy ranks Arizona as having the 13th most regressive tax system in the country. Colorado ranks 39th.

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State Rundown 8/13: Income Tax Elimination Fails in Missouri

• By ITEP Staff

In a win for Missouri workers and families, voters overwhelmingly rejected a proposed amendment that would have allowed lawmakers to replace the state's income tax with increased or expanded sales taxes.

USA TODAY: States are relying more on sales taxes. Here’s why that matters

July 30, 2026

Over time, some states have slashed corporate and personal income taxes while also raising the sales tax rate. In 11 states, “all three of those things have happened,” said Sarah Austin, a senior analyst at ITEP and author of the report. 

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2026 Sessions in Review: States Fund Tax Credits by Preserving, Raising Revenue

• By Aidan Davis

In a year of cautious uncertainty around current and ongoing revenues, many state lawmakers strengthened their tax credits for families and children.

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State-by-State Tax Expenditure Reports

• By ITEP Staff

Below is a list of tax expenditure reports published in the states.

The Arizona Center for Economic Progress: As America250 Approaches, Arizona’s Story Must Include All of Us

• By ITEP Staff

Under H.R. 1, the federal tax package passed last year, the richest 1% of Arizonans are set to receive an average tax cut of nearly $80,000, according to the Institute on Taxation and Economic Policy. The lowest-income 20% of Arizonans will receive about $10. Read more.

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State Rundown 6/11: Taxing the Rich Heats Up

• By ITEP Staff

As we head into summer, many state legislatures are in the final stretches of their sessions. Rhode Island moved another step closer to joining the ranks of Washington, Maine, and Hawai’i in enacting a new high-income surcharge this year.

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State Rundown 5/7: Federal Showers Make States Dour

• By ITEP Staff

The effects of last year’s federal tax and spending cuts continue to ripple through the states. With gas prices soaring due to the Iran war, some states are attempting to provide a bit of relief in the form of gas tax reductions and suspensions.

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State Rundown 4/30: Aloha to Tax Cuts, Hawaiʻi Lawmakers Address Revenue Gap with High-End Tax Changes

• By ITEP Staff

This week Hawaiʻi lawmakers reached a compromise to balance the state budget and maintain tax cuts for most residents by, in part, raising rates on the richest Hawaiians. Other states are working to generate revenue from their wealthiest residents, too.

State Tax Watch 2026

• By ITEP Staff

ITEP tracks tax discussions in legislatures across the country and uses our unique data capacity to analyze the revenue, distributional, and racial and ethnic impacts of many of these proposals. State Tax Watch offers the latest news and movement from each state.

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State Rundown 4/1: No Fooling Around Anymore in Washington, But Cruel Pranks in South Carolina

• By ITEP Staff

In Washington, Gov. Bob Ferguson and lawmakers decided to stop fooling around with one of the nation’s most upside-down tax codes and finally brought to life a new millionaires’ tax, the first new income tax created in a state since 1991.

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State Rundown 3/4: Budget Realities Set In

• By ITEP Staff

As many state legislative sessions near or cross the halfway point, lawmakers are facing tough choices.

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State Rundown 2/19: Necktie (NCTI) Offers a Way Out of a Knotty Situation

• By ITEP Staff

State lawmakers are grappling with a range of challenges as their fiscal outlooks deteriorate, federal tax enforcement wanes (after the Trump administration cut the IRS workforce by 25 percent), and a rewritten federal tax code sends states scrambling to decide what changes they might want to make in their own codes.

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State Rundown 2/5: Icy Roads Do Not Slow Tax Policy Debates

• By ITEP Staff

Despite wintry conditions across much of the country, that hasn’t stopped state lawmakers from debating major tax policy changes.

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State Rundown 1/22: Cautious Tone Noticeable in Most Statehouses

• By ITEP Staff

Most states are adopting a very cautious approach so far this year as legislators begin their sessions and governors make their annual addresses, thanks to ongoing economic uncertainty and federal retrenchment.

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State Rundown 1/14: New Year Brings New Resolutions for Funding Key Priorities

• By ITEP Staff

State governors are beginning to lay out their top priorities as legislatures reconvene in statehouses around the country.

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Conforming to the ‘No Tax on Tips’ Gimmick Just Got Riskier and Costlier for States

• By Nick Johnson

An unknown number of workers who previously were assumed to be ineligible for the tax break may nonetheless claim it.

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State Rundown 11/24: States Say ‘No Thank You’ to Federal Tax Cuts Reducing State Revenue

• By ITEP Staff

Lawmakers in two more states have wisely said “no thank you” to federal tax cuts that would have flowed through to their state tax codes and undermined funding for their priorities

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State Rundown 11/5: Voters Say “Yes!” to Public Investments

• By ITEP Staff

Despite being an off-year election, voters made a call for shared public investments at the polls.

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The Wealth Proceeds Tax: A Simple Way for States to Tax the Wealthy

• By Sarah Austin, Carl Davis

Taxing the proceeds generated by wealth through a new Wealth Proceeds Tax is a simple way for states to raise billions in new revenue and improve the fairness of their tax systems.

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The Potential of Local Child Tax Credits to Reduce Child Poverty

• By Kamolika Das, Aidan Davis, Galen Hendricks, Rita Jefferson

Local governments have a critical role to play in reducing child poverty. Local Child Tax Credits could provide large tax cuts to families at the bottom of the income scale, lessening the overall regressivity of state and local tax systems.

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State Child Tax Credits Boosted Financial Security for Families and Children in 2025

• By Neva Butkus

Child Tax Credits (CTCs) are effective tools to bolster the economic security of low- and middle-income families and position the next generation for success.

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Colorado Lawmakers Help Fill Trump-Induced Shortfall by Tackling Offshore Corporate Tax Avoidance 

• By ITEP Staff

As the Trump megabill blows holes in state budgets, Colorado is leading with reforms to curb offshore tax avoidance and roll back wasteful corporate subsidies.

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State Rundown 7/24: States Begin Preparing for Federal Megabill Fallout

• By ITEP Staff

All eyes in statehouses in recent weeks have been on federal budget negotiations, and now that the “megabill” has passed, they are focused in on their own budgets in search of ways to cope with the enormous consequences coming their way. All states will see fewer federal dollars flowing through their coffers, higher needs due […]