Calculate your exact take-home pay in Arizona for 2025. Arizona has a flat state income tax rate of 2.5% — one of the lowest in the country. Use our free calculator below to see your real paycheck after all taxes.
2025 federal & state rates · Arizona specific
Arizona simplified its tax code to a single flat rate of 2.5% in 2023 — making it one of the most tax-friendly states for workers. This replaced a previous graduated system.
| Annual Salary | Monthly Take-Home | Annual Take-Home | Effective Tax Rate |
|---|---|---|---|
| $40,000 | $2,882 | $34,584 | 13.5% |
| $60,000 | $4,095 | $49,140 | 18.1% |
| $80,000 | $5,245 | $62,940 | 21.3% |
| $100,000 | $6,332 | $75,984 | 24.0% |
| $150,000 | $8,957 | $107,484 | 28.3% |
*Estimates for single filer, standard deduction, no additional deductions.
| City | Median Home Price | Avg Rent (1BR) | Cost of Living |
|---|---|---|---|
| Phoenix | $415,000 | $1,550 | Moderate-High |
| Tucson | $290,000 | $1,150 | Moderate |
| Scottsdale | $680,000 | $2,000 | High |
| Mesa | $380,000 | $1,400 | Moderate |
| Chandler | $430,000 | $1,500 | Moderate-High |
Arizona made a dramatic tax transformation in 2023, collapsing its previous multi-bracket progressive tax system into a single flat 2.5% rate — one of the lowest flat income tax rates of any state in the country. This makes Arizona exceptionally competitive for workers relocating from high-tax states. A California resident earning $150,000 who moves to Arizona saves approximately $12,000–$15,000 per year in state income taxes alone, while also benefiting from dramatically lower home prices in the Phoenix metro compared to coastal California cities.
Before 2023, Arizona had a progressive tax system with rates up to 4.5%. The shift to a single 2.5% flat rate was one of the most significant tax cuts in Arizona's history. For a person earning $100,000, this change reduced state income tax from approximately $3,900 to $2,500 — saving $1,400 per year automatically. The flat rate applies to all Arizona income with very limited deductions at the state level.
Arizona allows a standard deduction of $13,850 for single filers and $27,700 for married filing jointly. The state also allows a personal exemption of $2,200 for single filers. After these deductions, most Arizona workers find their effective state tax rate lands between 2.0% and 2.4% — making Arizona genuinely one of the lowest income-tax states among those that have an income tax at all.
Arizona's economy has transformed dramatically over the past decade. The Phoenix metro has become a major hub for semiconductor manufacturing (TSMC's new fabrication plant), financial services, technology, healthcare, and real estate. The median household income in Arizona is approximately $65,000. Scottsdale is home to several major financial firms. Tucson has a significant aerospace and defense presence through Raytheon and Davis-Monthan Air Force Base.
A $100,000 salary in Arizona takes home approximately $73,500 per year — nearly $6,000 more than the same salary in California, and one of the best take-home rates of any state that does levy an income tax.
The financial math is compelling. A California worker earning $200,000 pays approximately $18,000–$20,000 in California state income tax. Moving to Arizona, that same worker pays only $5,000 in state income tax — saving $13,000–$15,000 per year. Combined with significantly lower home prices in Phoenix compared to Los Angeles or the Bay Area, the financial incentive to relocate is substantial.
Arizona's minimum wage is $14.70 per hour in 2025. Arizona adjusts its minimum wage annually for inflation under a voter-approved measure passed in 2016. Flagstaff has a higher local minimum wage of $17.40 per hour as of 2025.
Arizona does not tax Social Security benefits. Arizona does tax most pension income, though it offers a subtraction for up to $2,500 of certain pension income. Military retirement pay is fully exempt from Arizona income tax, making it a popular destination for military retirees relocating after service.