Arizona Taxes, Wages and Living Costs (2026)

Arizona has a flat income tax rate of 2.5%, the 10th highest combined sales tax (8.54%) and a $15.15 minimum wage as of 2026.

State income tax
2.5%
Flat rate
Combined sales tax
8.54%
5.60% state + 2.94% avg. local
Minimum wage
$15.15
State rate, July 1, 2026
Property tax
0.48%
Effective rate on home value
Electricity
15.38¢/kWh
Residential average, July 2026

What It Adds Up To

$6,902 a year: that is roughly what a Arizona homeowner earning $75,000 pays in state income tax ($1,666), sales tax on $25,000 of purchases ($2,135), property tax on a $300,000 house ($1,440) and electricity at 900 kWh a month ($1,661).

Arizona Income Tax in 2026

Arizona uses a single flat rate. Single filers' standard deduction: $8,350. On $50,000 of wages, a single filer's Arizona tax works out to about $1,041 (2.1% of wages); on $100,000 it is about $2,291 (2.3%). Source: Tax Foundation, January 1, 2026.

RateSingle filersMarried filing jointly
2.5%over $0over $0

Take-Home Pay in Arizona

Estimated 2026 take-home pay for a single filer with no pre-tax deductions, using the federal brackets and $16,100 standard deduction, Social Security and Medicare, and Arizona's brackets above. Open the paycheck calculator set to Arizona to add a 401(k), change pay frequency or filing status.

SalaryFederal taxFICAState taxTake-home (year)Per biweekly check
$50,000$3,820$3,825$1,041$41,314$1,589
$75,000$7,670$5,738$1,666$59,926$2,305
$100,000$13,170$7,650$2,291$76,889$2,957

Sales Tax

The state rate is 5.60% and local governments add 2.94% on average, for a combined 8.54%, 10th highest of the 50 states and D.C. (median 7.00%). A $1,000 purchase carries about $85 in sales tax at the average combined rate. Source: Tax Foundation, July 1, 2026.

Minimum Wage

The Arizona minimum wage is $15.15 an hour, 11th highest in the country, or $31,512 a year for full-time work, $16,432 more than the federal $7.25. Source: U.S. Department of Labor, July 1, 2026.

Property Tax

Homeowners in Arizona paid property taxes equal to 0.48% of home value on average, the 4th lowest effective rate (median state 0.79%). On a $300,000 home that is about $1,440 a year, or $120 a month in escrow. Source: Tax Foundation (Census ACS data), 2024 data.

Electricity Prices

Residential electricity averaged 15.38¢ per kWh in July 2026, the 19th lowest of the 50 states and D.C. (median 16.09¢). A household using 900 kWh a month would pay about $138 before fixed charges. Source: U.S. EIA, July 2026 data.

Arizona Compared with Its Neighbors

Arizona sits in the middle of its 5 neighbors on taxes, wages and power prices.

StateTop income taxSales taxMin. wageProperty taxElectricity
Arizona2.5%8.54%$15.150.48%15.38¢
California13.3%9.03%$16.900.70%33.61¢
Colorado4.4%7.89%$15.160.50%17.00¢
NevadaNone8.24%$12.000.50%12.77¢
New Mexico5.9%7.68%$12.000.63%16.09¢
Utah4.5%7.42%$7.250.48%13.12¢

Arizona figures use statewide averages and skip credits, exemptions and local income taxes; check Arizona revenue and labor department sites before filing or hiring.

💰 Finance Calculators
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Arizona Income Tax Calculator
Federal 2026 tax plus 2.5% top Arizona rate
Arizona specific
📋
State Tax Calculator
Arizona brackets, top rate 2.5%
2026 rates
🏠
Mortgage Calculator
Payment plus Arizona property tax at 0.48%
🏦
Home Affordability Calculator
Budget with 0.48% property tax
📊
Property Tax Calculator
Arizona effective rate: 0.48%
💼
Salary Converter
Hourly to annual; Arizona minimum $15.15
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Security deposit interest rules and return deadlines for Arizona landlords and tenants.
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