Arizona's income tax brackets for 2024

Arizona taxes your income using a progressive tax system, meaning the rate increases as your income goes up. For 2024, Arizona has five tax brackets that range from 2.55% on the lowest income to 4.5% on the highest. The exact bracket you fall into depends on your filing status — single, married filing jointly, married filing separately, or head of household — and your total taxable income for the year.

The state publishes new brackets each year to account for inflation. If you earned $30,000 as a single filer in 2024, you would not pay 4.5% on all of it. Instead, you would pay 2.55% on the first portion, then incrementally higher rates as your income climbs through each bracket. Only the income that falls within the highest bracket you reach gets taxed at that rate.

Key Takeaways

  • Arizona uses five tax brackets ranging from 2.55% to 4.5%, with the rate you pay depending on how much you earn and your filing status.
  • You do not pay the top rate on all your income — only the portion that falls within your highest bracket is taxed at that rate.
  • Arizona tax brackets change each year, so the exact income thresholds for 2024 differ from 2023 and will differ from 2025.
  • Your employer withholds Arizona state income tax from your paycheck based on the W-4 form you complete, but you can adjust your withholding if too much or too little is being taken out.

How Arizona calculates your tax bracket

To find your bracket, start with your adjusted gross income (AGI) — the number you report on your federal tax return after deductions like student loan interest or educator expenses. Arizona then allows you to subtract the standard deduction for your filing status. For 2024, the Arizona standard deduction ranges from $14,100 for single filers to $28,200 for married couples filing jointly. The amount left after that deduction is your taxable income, and that is the number you use to find your bracket.

Once you know your taxable income, you look up which bracket it falls into based on your filing status. For example, if you are single with a taxable income of $50,000 in 2024, you would find the bracket that covers $50,000 for single filers and use the rate shown for that bracket. The Arizona Department of Revenue publishes a tax table each year showing the exact income ranges and rates for each filing status.

What gets included in Arizona taxable income

Arizona taxes most types of income the same way the federal government does: wages, salaries, tips, interest, dividends, and capital gains all count. However, Arizona does not tax certain types of income that the federal government does tax. Social Security benefits are not taxed by Arizona, and neither are military pensions or certain retirement income if you meet specific age and residency requirements.

If you have income from self-employment, you report it on Schedule C just as you would for federal taxes, and Arizona taxes that income at your applicable bracket rate. You can deduct business expenses the same way you do federally. Rental income, investment income, and income from side work all count toward your Arizona taxable income.

How withholding works on your paycheck

Your employer withholds Arizona state income tax from each paycheck based on the information you provide on your Arizona W-4 form. This is separate from federal withholding — you complete both forms. The W-4 asks about your filing status, number of dependents, and other income sources so your employer can estimate how much tax you will owe for the year and spread that amount across your paychecks.

If you have a second job, significant investment income, or a spouse who also works, your withholding may not be accurate. You can file a new W-4 with your employer at any time to adjust how much is withheld. If too much is being taken out, you will receive a refund when you file your return. If too little is being taken out, you will owe money when you file.

Deductions and credits that lower your Arizona tax

Arizona allows you to use either the standard deduction or itemized deductions, just like federal taxes. Most people benefit from the standard deduction because it is simpler and larger than their itemized deductions would be. Beyond that, Arizona offers several tax credits — money subtracted directly from the tax you owe rather than from your income.

Arizona has a child and dependent care credit, a credit for taxes paid to other states, and credits for certain types of charitable donations. Some credits are refundable, meaning if the credit is larger than the tax you owe, you receive the difference as a refund. Others are nonrefundable, so they can only reduce your tax to zero. The Arizona Department of Revenue website lists all available credits and the income limits for each.

Filing your Arizona return

You file your Arizona state income tax return using Form 140 (or 140-NR if you are a nonresident). You can file electronically through the Arizona Department of Revenue website or through tax software, or you can mail a paper return. The important date is the same as the federal important date — normally April 15 of the year after you earned the income.

If you owe money, you can pay online, by mail, or through your bank. If you are due a refund, the state processes it within four to six weeks if you filed electronically, or longer if you mailed a paper return. You can check the status of your refund on the Arizona Department of Revenue website using your Social Security number and the amount you reported on your return.

Frequently Asked Questions

Do I have to file an Arizona tax return if I live in Arizona?

You must file if your income exceeds the filing threshold for your age and filing status. For most people under 65, that threshold is the standard deduction amount — around $14,100 for single filers in 2024. If your income is below that, you do not have to file, though you may want to if taxes were withheld from your paychecks so you can get a refund.

What if I moved to Arizona partway through the year?

You are a part-year resident. You report income earned while you lived in Arizona on the Arizona return and income earned before you moved on your previous state's return. Arizona Form 140-PY is used for part-year residents. You will likely file returns in both states for that year.

Can I deduct federal income taxes from my Arizona taxable income?

No. Arizona does not allow you to deduct federal income taxes paid. You can deduct state and local property taxes up to $10,000 combined on your federal return, but that does not affect your Arizona state return.

What happens if I do not file or pay on time?

The Arizona Department of Revenue charges penalties and interest on unpaid taxes. The penalty starts at 5% of the unpaid amount and increases the longer it remains unpaid. Interest accrues daily. If you cannot pay by the important date, you can request an extension or a payment plan through the department.

Are military members stationed in Arizona taxed by the state?

Active-duty military members are not taxed by Arizona on military pay, regardless of where they are stationed. If you are active duty and stationed in Arizona, you do not owe Arizona income tax on your military income, though you may still need to file if you have other income sources like a spouse's wages or investment income.