Arizona Taxes 2025
Complete tax guide and OBBBA calculator for AZ residents
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Arizona Tax Overview 2025
State Income Tax
2.5%
Flat rate structure
Combined Sales Tax
8.40%
State 5.60% + Local 2.80%
Avg Property Tax
0.63%
Below average property tax rates
💼 Arizona Income Tax 2025
Arizona has a flat income tax rate of 2.5%.
When filing your Arizona state tax return, your income tax liability depends on your taxable income and filing status. Arizona uses a flat income tax structure.
Arizona Income Tax Quick Facts
🛒 Arizona Sales Tax 2025
Arizona's combined average sales tax rate is 8.40%, which includes both state and local components. The state sales tax rate is 5.60%, while local jurisdictions add an average of 2.80%.
Sales Tax Breakdown
💡 Tip: Local sales tax rates vary by city and county. Your actual rate may be higher or lower depending on where you shop.
🏠 Arizona Property Tax 2025
Arizona's average effective property tax rate is 0.63%. Below average property tax rates.
Property taxes in Arizona are assessed at the local level by counties and municipalities. Rates can vary significantly between jurisdictions.
Example Annual Property Tax
| Home Value | Est. Annual Tax | Monthly |
|---|---|---|
| $250,000 | $1,575 | $131 |
| $400,000 | $2,520 | $210 |
| $600,000 | $3,780 | $315 |
OBBBA Tax Benefits for Arizona Residents
Arizona's low flat tax combined with OBBBA deductions provides significant savings.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several new federal tax deductions that Arizona residents can claim starting with their 2025 tax returns.
Available OBBBA Deductions for AZ Residents:
Calculate Your Arizona Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Arizona resident.
Calculate My SavingsHow Arizona Compares
| Tax Type | AZ Rate | US Average | Comparison |
|---|---|---|---|
| Income Tax (Top Rate) | 2.5% | 5.1% | Varies |
| Sales Tax | 8.40% | 7.12% | Above Avg |
| Property Tax | 0.63% | 1.10% | Below Avg |
Frequently Asked Questions
What is the income tax rate in Arizona?
Arizona has a flat income tax with rates of 2.5%. Arizona has a flat income tax rate of 2.5%.
What is the sales tax in Arizona?
The combined average sales tax rate in Arizona is 8.40%. This includes the state rate of 5.60% plus an average local rate of 2.80%.
How do OBBBA deductions benefit Arizona residents?
Arizona's low flat tax combined with OBBBA deductions provides significant savings. Arizona residents can claim tips, overtime, auto loan interest, SALT, and senior bonus deductions on their federal returns.
When are Arizona taxes due?
For tax year 2025, Arizona state taxes are due on April 15, 2026, the same date as federal taxes. Extensions may be available if you need more time to file.