Arizona state income tax depends on three factors: your taxable income, your filing status (whether you are filing single or jointly), and your residency status. Depending on these, Arizona state levies two tax rates — 2.55% and 2.98%.
For the state income tax returns due April 18, 2023, here’s the tax slab to follow, depending on your filing status.
For single filers under Arizona state income tax:
| Tax rate | Taxable income bracket | Tax owed |
| 2.55% | $0 to $28,653 | 2.55% of taxable income |
| 2.98% | $28,654 and over | 2.98% of taxable income over $28,653, plus $731 |
For people filing jointly or head of household:
| Tax rate | Taxable income bracket | Tax owed |
| 2.55% | $0 to $57,305 | 2.55% of taxable income |
| 2.98% | $57,306 and over | 2.98% of taxable income over $57,206, plus $1,461 |
These tax slabs are applicable on all Arizona residents, full time, part-time or even non-residents, if you are making $50,000 a year.
Full time and part-time residents must file the tax under the following slab as per Arizona state income tax:
| Filing status | Arizona gross income |
| Single | $12,950 |
| Married, filing jointly | $25,900 |
| Married, filing separately | $12,950 |
| Head of household | $19,400 |
Note
In Arizona, the state gross income is your federal gross income minus the interest from government bonds, Railroad Retirement Act benefits, Social Security retirement benefits, active duty military pay and pay for service in the National Guard.
But if you are a non-resident, the rules are a bit tricky. For a non-resident filing the tax, you need to divide the Arizona state gross income by the federal adjusted gross income to have an idea of the filing requirement. You will find more instructions and guidance from the Arizona Department of Revenue in Form 104NR.
How to find out if you are a resident of Arizona?
The Arizona State income tax identifies three types of residence status, based on which it levies taxes on citizens.
| Type of residence | Taxable income |
| Full time resident | All income from all sources inside and outside Arizona |
| Part-year resident | All income received while a resident, plus income from Arizona sources while a non-resident |
| Non-resident | You might live outside Arizona, but make income from Arizona sources. |
Note:
A non-resident of Arizona is eligible to be a taxpayer if they have income from any sources based in Arizona. These include the following:
- Jobs or services performed in Arizona.
- Rent from real estate you own in Arizona
- Sale or transfer of ownership of real estate that you own in Arizona.
- Any sort of income from a business, trade, or any other sources based in Arizona.
Things to remember about Arizona state income tax
- The deadline for filing taxes in Arizona is generally the same as the federal tax.
- There are a number of tax software out there that will do your taxes, for a small fee. There is free software as well. Make sure you do your research to find the software that suits you.
- You can check the status of your tax refund online as well.
- In case you cannot afford to pay your taxes, the state offers payment plans that you can use to pay your taxes and bills over a certain period of time.
- You can also apply for Arizona’s Offer in Compromise program. In this program, you might end up paying less than what you owe.
