Arizona's income tax brackets for 2024

Arizona taxes income at rates that depend on how much you earn and your filing status. For 2024, the state uses five tax brackets that range from 2.55% on the lowest incomes to 4.5% on the highest. The brackets are different for single filers, married couples filing jointly, and heads of household.

The lowest bracket starts at 2.55% and applies to income up to a certain threshold—that threshold changes each year because Arizona adjusts brackets for inflation. For single filers in 2024, the 2.55% rate applies to income up to $31,346. The rate then steps up to 3.34% on income between $31,346 and $62,693, then 4.17% between $62,693 and $94,039, then 4.35% between $94,039 and $187,346, and finally 4.5% on anything above $187,346.

If you file as married filing jointly, the income thresholds are roughly double those amounts. Head of household filers have their own set of thresholds that fall between single and married rates. Arizona does not have a flat tax—you pay the lower rate on the lower portion of your income and the higher rate only on the portion that falls into each bracket.

Key Takeaways

  • Arizona's top income tax rate is 4.5%, which is lower than many other states but applies only to income above $187,346 for single filers in 2024.
  • The state uses five tax brackets, and the income thresholds shift each year to account for inflation, so you should check the current year's brackets on the Arizona Department of Revenue website.
  • Your employer withholds Arizona income tax from your paycheck based on the W-4 form you complete, and you can adjust withholding if too much or too little is being taken out.
  • Arizona offers tax credits for certain situations—such as dependent children, education expenses, and charitable donations—that can reduce the tax you owe.

How withholding works on your paycheck

Your employer removes Arizona income tax from your paycheck before you receive it. The amount withheld is based on the Arizona Form W-4, which you fill out when you start a job. This form tells your employer how much to withhold based on your expected annual income, number of dependents, and other personal details.

If you find that too much tax is being withheld—meaning you get a large refund each year—you can file a new W-4 to reduce the withholding. If too little is being withheld and you owe money at tax time, you can increase it. You can change your W-4 at any time by giving a new form to your payroll department.

Self-employed people and those with income not subject to withholding must pay estimated quarterly taxes directly to Arizona. These payments are due on the 15th of April, June, September, and January. If you miss a payment or underpay significantly, you may owe penalties and interest.

Credits and deductions that lower your Arizona tax bill

Arizona offers several tax credits that directly reduce the amount of tax you owe. A tax credit is different from a deduction—a credit subtracts directly from your tax bill, while a deduction reduces the income that gets taxed. Credits are generally more valuable.

Common Arizona credits include the dependent exemption credit (a flat amount per dependent child), the education credit for tuition paid to Arizona schools, and the charitable contribution credit for donations to may have access to charities. Arizona also offers credits for property taxes paid and for certain energy-efficient home improvements, though these have specific income limits and rules.

You claim these credits when you file your state tax return. The Arizona Department of Revenue publishes a full list of available credits each year, and the rules change periodically, so it is worth checking their website or speaking with a tax professional if you think you may may have access to for any.

Who has to file an Arizona tax return

You must file an Arizona return if your income exceeds a certain threshold, which varies by age and filing status. For 2024, a single person under 65 must file if their income is more than $14,100. A married couple filing jointly must file if their combined income exceeds $28,200. These thresholds are higher for people age 65 and older.

Even if your income is below the filing threshold, you may want to file anyway if you had taxes withheld during the year—filing allows you to claim a refund of any overpayment. If you are self-employed, you should file regardless of income level if your net earnings from self-employment are $400 or more.

Arizona requires you to file by the same important date as the federal return, which is typically April 15th. If you need more time, you can request an extension, though an extension to file is not an extension to pay—taxes owed are still due by April 15th.

How Arizona's rate compares to other states

Arizona's top rate of 4.5% is moderate compared to other states. Some states have no income tax at all (Texas, Florida, Nevada, and others), while some have rates above 10%. California's top rate is 13.3%, New York's is 10.9%, and Oregon's is 9.9%. On the other hand, states like Colorado (4.63%), Utah (4.65%), and Indiana (3.23%) have rates similar to or lower than Arizona's.

What matters most is not just the top rate but where your income falls in the brackets. If you earn $50,000 as a single filer in Arizona, you pay an effective rate (the average rate across all your income) of roughly 3.5%, not the full 4.5%. The effective rate is always lower than the marginal rate because of how brackets work.

Filing your Arizona return and where to send it

You file your Arizona return using Form 140 (for single filers), Form 140-PZ (for married filing jointly), or the appropriate form for your status. You can file by mail, electronically through the Arizona Department of Revenue website, or through tax software that supports Arizona returns.

If you file electronically, the state processes returns faster and can issue refunds more quickly—typically within two to four weeks for e-filed returns versus six to eight weeks for paper returns. The Arizona Department of Revenue accepts returns starting in late January each year.

Mail paper returns to the Arizona Department of Revenue, 1600 W. Monroe St., Phoenix, AZ 85007. Include all required schedules, documentation of credits you are claiming, and proof of any taxes paid. Keep a copy for your records.

Frequently Asked Questions

Do I have to pay Arizona income tax if I work in Arizona but live in another state?

Yes. Arizona taxes income earned within the state regardless of where you live. If you live in another state and work in Arizona, you owe Arizona tax on that income. You may also owe tax to your home state, though many states offer credits to prevent double taxation on the same income.

What happens if I don't file an Arizona return when I'm supposed to?

The Arizona Department of Revenue can assess penalties and interest on unpaid taxes. The penalty for late filing is typically 5% of the unpaid tax per month, up to 25%. Interest accrues at a rate set by the state. If you owe money, filing late is still better than not filing at all—the penalties are smaller if you file late than if you never file.

Can I deduct federal income tax paid from my Arizona return?

No. Arizona does not allow you to deduct federal income tax as an itemized deduction on your state return. You can deduct state and local property taxes, mortgage interest, and charitable contributions if you itemize, but federal income tax is not deductible.

Are retirement account contributions deductible on my Arizona return?

Contributions to traditional IRAs and 401(k) plans are deductible on your federal return and generally also deductible on your Arizona return, reducing your Arizona taxable income. Contributions to Roth accounts are not deductible because they are made with after-tax dollars. Check the current rules or speak with a tax professional about your specific situation.

What if I moved to Arizona partway through the year?

You owe Arizona tax only on income earned while you were an Arizona resident. If you moved to Arizona on July 1st, you file as a part-year resident and report only the income earned from July through December. You may also owe tax to the state you moved from on income earned there earlier in the year.