2022-2023 Arizona State Income Tax: Rates, Who Pays

You don’t necessarily have to live in Arizona to pay Arizona state income tax.
Tina Orem
Sabrina Parys
By Sabrina Parys and  Tina Orem 
Edited by Arielle O'Shea

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Arizona state income tax brackets and rates depend on taxable income, tax-filing status and residency status. For the 2022 tax year (taxes filed in 2023), Arizona has two income tax rates: 2.55% and 2.98%.

Arizona state income tax rates and tax brackets

Arizona state income tax returns are due April 18, 2023, or October 16, 2023, with an extension.

Single or married filing separately

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.

Source: Arizona Department of Revenue.

Head of household or married filing jointly

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.

Source: Arizona Department of Revenue.

Arizona residents who make over $50,000 in taxable income, as well as all part-year or nonresidents, are required to use the above tax brackets to figure their tax liability. Full-year Arizona residents who earn below $50,000 in taxable income can use either the above table or the Arizona Department of Revenue’s optional tables to determine their taxes owed. 

🤓Nerdy Tip

Arizona previously had four tax brackets with rates that ranged from 2.59% to 4.5%. Several legislative changes, including Senate Bill 1828, made significant changes to the tax structure. Under the new rules, the four tax brackets were slashed into two for tax year 2022, and the state will introduce a flat 2.5% tax in 2023 — the lowest fixed tax rate in the U.S. as of this writing.

Do I have to pay Arizona state income tax?

Generally, you have to file an Arizona state income tax return if you’re a resident, part-year resident or nonresident.

Full-year and part-year residents must file if their gross income is above these amounts:

Filing status

Arizona gross income

Single

$12,950.

Married, filing jointly

$25,900.

Married, filing separately

$12,950.

Head of household

$19,400.

Note: Arizona gross income equals your federal gross income minus interest from government bonds, Social Security retirement benefits, Railroad Retirement Act benefits, active duty military pay and pay for service in the National Guard.

The rules for nonresidents are a bit trickier. Nonresidents must divide their Arizona gross income by their federal adjusted gross income to get a sense of their filing requirement. The Arizona Department of Revenue has more guidance in the Form 104NR instructions.

Am I a resident for Arizona state income tax purposes?

There are three types of residency statuses when it comes to Arizona state income tax. They determine what portion of your income the state will tax.

Types of residency statuses in Arizona

If your Arizona residency type is...

Arizona taxes this part of your income.

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 nonresident.

Nonresident

Income from Arizona sources.

» Find a local tax preparer in Arizona for free: See who's available in your area.

Resident status rules

In general, you’re a resident of Arizona for tax purposes if your primary, permanent home is there or you spent more than nine months there during the tax year. Arizona residents file Form 140, 140A or 140EZ. The Arizona Department of Revenue has a detailed breakdown of which form you should use based on criteria such as your income, if you plan to itemize, and whether you’ll claim estimated payments.

You can also see all the rules here for how Arizona determines residency status.

Part-year resident status rules

Generally, you’re a part-year resident of Arizona if you were a nonresident for some of the tax year. This is often the case for people who moved to Arizona from another state.

If you’re a part-year resident, you typically pay Arizona state tax on all income you received during the part of the tax year you were a resident of Arizona, plus state income tax on income just from Arizona sources while you were a nonresident. Part-year residents file Form 140-PY.

» Need to file in multiple states? State income tax rates and how they work.

Nonresident status rules

Nonresidents still may have to pay Arizona state tax on income they receive from Arizona sources. This means you may need to file an Arizona state income tax return even if you live in another state but made money from Arizona-related things such as:

  • Services performed in Arizona.

  • Rent from real estate you own in Arizona.

  • The sale or transfer of real estate in Arizona.

  • Income from an Arizona business, trade or profession.

5 things to know about Arizona state income tax

  1. Arizona’s tax-filing deadline generally follows the federal tax deadline.

  2. Tax software will do your state taxes (though sometimes for an extra fee). Check to see if you might also be eligible for Free File.

  3. Wondering "Where is my Arizona state tax refund?" Good news: You can check the status of your state tax refund online.

  4. If you can’t afford your tax bill, Arizona offers payment plans that you can set up online or over the phone.

  5. You can also apply for the state’s Offer in Compromise program, which might allow you to pay less than you owe.


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