Arizona State Income Tax: Rates and Who Pays in 2021

You don’t necessarily have to live in Arizona to pay Arizona state income tax.
Tina OremOct 1, 2021

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.

Arizona state income tax rates are 2.59%, 3.34%, 4.17% and 4.50%. Arizona state income tax brackets and income tax rates depend on taxable income, tax-filing status and residency status.

Arizona state income tax rates and tax brackets

Tax rate

Taxable income bracket

Tax owed

2.59%

$0 to $27,272.

2.59% of taxable income.

3.34%

$27,273 to $54,544.

3.34% of taxable income, then subtract $205.

4.17%

$54,545 to $163,632.

4.17% of taxable income, then subtract $657.

4.50%

$163,633 and up.

4.50% of taxable income, then subtract $1,197.

Tax rate

Taxable income bracket

Tax owed

2.59%

$0 to $54,544.

2.59% of taxable income.

3.34%

$54,545 to $109,088.

3.34% of taxable income, then subtract $409.

4.17%

$109,089 to $327,263.

4.17% of taxable income, then subtract $1,315.

4.50%

$327,264 and up.

4.50% of taxable income, then subtract $2,394.

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 and you have gross income above these amounts:

Filing status

Arizona gross income

Single

$12,400.

Married, filing jointly

$24,800.

Married, filing separately

$12,400.

Head of household

$18,650.

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.

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.

You can 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.

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).

  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.


Find the tax relief company that's best for you

We've weighed the pros and cons of some major players in the space.

Fees

  • Free initial consultation.

  • $325 investigation fees. (NerdWallet users get 50% off these fees by using the code NERD50.)

  • $750-$5,000 resolution fees; $3,000 average.

Services

  • Dedicated case analyst.

  • Phone, email, mail and online portal.

  • Refunds possible but somewhat limited.

Fees

  • Free initial consultation.

  • $495 investigation fees.

  • $1,500-$4,000 resolution fees (on average; depends on case specifics).

Services

  • Dedicated case manager.

  • Phone, email, mail and online portal.

  • Refunds only within 15 days of enrollment.

Fees

  • Free initial consultation.

  • $399 investigation fees.

  • Average resolution fees just under $1,500 per the company.

Services

  • Some case managers are also enrolled agents or CPAs.

  • Phone, email, mail and chat through online portal.

  • Refunds possible but somewhat limited.

Get more smart money moves – straight to your inbox
Sign up and we’ll send you Nerdy articles about the money topics that matter most to you along with other ways to help you get more from your money.