Tucson, AZ Taxes 2025
Complete local tax guide and OBBBA calculator
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Tucson Tax Overview 2025
Arizona's flat 2.5% income tax. Affordable compared to Phoenix.
Local Income Tax
0%
City/county rate
Sales Tax
8.70%
State + local
Property Tax
0.64%
Effective rate
Median Home
$295,000
Home value
No Local Income Tax!
Tucson does not impose a local income tax on residents, which means you only pay state income tax (if applicable) and federal taxes.
State Tax Information
Tucson is located in Arizona (2.5% state income tax)
💼 Tucson Local Income Tax
Tucson does not impose a local income tax on residents. Your income tax obligations are limited to state income tax (if applicable in Arizona) and federal income tax.
This is good news for Tucson residents, as it means one less tax to worry about compared to cities that do impose local income taxes.
Total Income Tax Burden in Tucson
🛒 Tucson Sales Tax 2025
The combined sales tax rate in Tucson is 8.70%. This includes both the Arizona sales tax and any local sales taxes.
Sales tax applies to most retail purchases in Tucson. Some items like groceries, prescription medications, and clothing may be exempt or taxed at reduced rates depending on Arizona law.
Sales Tax Breakdown
Sales Tax Examples
| Purchase Amount | Sales Tax | Total |
|---|---|---|
| $50 | $4.35 | $54.35 |
| $100 | $8.70 | $108.70 |
| $500 | $43.50 | $543.50 |
| $1,000 | $87.00 | $1,087.00 |
🏠 Tucson Property Tax 2025
The average effective property tax rate in Tucson is 0.64%. Based on the median home value of $295,000, the typical homeowner pays approximately $1,888 per year in property taxes.
Property taxes fund local services including schools, police, fire departments, roads, and parks. Rates vary by specific location within Tucson based on school district and other taxing authorities.
Estimated Annual Property Tax in Tucson
| Home Value | Annual Tax | Monthly | SALT Deductible? |
|---|---|---|---|
| $200,000 | $1,280 | $107 | ✓ Yes |
| $300,000 | $1,920 | $160 | ✓ Yes |
| $400,000 | $2,560 | $213 | ✓ Yes |
| $500,000 | $3,200 | $267 | ✓ Yes |
| $750,000 | $4,800 | $400 | ✓ Yes |
| $1,000,000 | $6,400 | $533 | ✓ Yes |
💡 SALT Tip: Under the OBBBA, you can deduct up to $40,000 in state and local taxes (SALT) on your federal return. This includes property taxes, state income taxes, and local income taxes.
💰 Tucson Cost of Living
Housing Costs
Tax Summary
OBBBA Tax Benefits for Tucson Residents
Tourism and hospitality workers benefit from tips deduction.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several federal tax deductions that can significantly reduce your tax burden as a Tucson resident.
Available OBBBA Deductions:
Calculate Your Tucson Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Tucson resident.
Calculate My SavingsFrequently Asked Questions
What is the sales tax in Tucson?
The combined sales tax rate in Tucson is 8.70%. This includes both state and local sales taxes.
Does Tucson have a local income tax?
Tucson has a local income tax of 0%. This is in addition to any state and federal income taxes.
What is the property tax rate in Tucson?
The average effective property tax rate in Tucson is 0.64%. On a home worth $295,000, you'd pay approximately $1,888 per year.
How do OBBBA deductions benefit Tucson residents?
Tourism and hospitality workers benefit from tips deduction. You can use our free calculator to estimate your total savings from tips, overtime, auto loan interest, SALT, and senior bonus deductions.