ARIZONA PAYCHECK CALCULATOR

Arizona runs one of the simplest paycheck stubs in the country. There’s a single state income tax rate, no city or county income tax anywhere in the state, and no state disability insurance deduction eating into your check. Since the flat 2.5% rate kicked in for the 2023 tax year, Arizona has held the lowest state income tax rate of any state that actually taxes wage income, well under neighbors like Colorado (4.4%) and Utah (4.5%), and nowhere near California’s top bracket of 13.3%. Compared against the rest of the country, Arizona sits solidly in the tax-friendly camp for income tax, even though it makes up some of that ground through sales tax.

What actually comes out of an Arizona paycheck: federal income tax, Social Security (6.2%), Medicare (1.45%), and the 2.5% state tax. That’s it, there’s no fifth line item to track. If you’re weighing a move or comparing job offers, it helps to see this next to other states: check the California paycheck calculator for the other end of the spectrum, the Nevada paycheck calculator for a zero-income-tax neighbor, or the Colorado paycheck calculator and Utah paycheck calculator for two other flat-tax states nearby.

Federal Tax on a $70,000 Salary: The Worked Example

Here’s exactly how the calculator above lands on the federal number for a single filer earning $70,000 in 2026.

Step	Detail	Amount
Gross salary	Starting point	$70,000
Minus standard deduction	Single filer, 2026	-$16,100
Federal taxable income		$53,900
10% bracket	$0 – $12,400	$1,240
12% bracket	$12,400 – $50,400	$4,560
22% bracket	$50,400 – $53,900	$770
Total federal tax	Effective rate: 9.4% of gross	$6,570

Notice the filer’s top marginal bracket is 22%, but the effective rate on the full $70,000 works out closer to 9.4%. That gap between marginal and effective rate is the single most misunderstood part of a paycheck, and it’s why the same $70,000 salary never gets fully taxed at the “scary” bracket number people quote.

Arizona vs Neighboring States at $70,000 (Single)

Figures below use each state’s own 2026 standard deduction and published brackets, same $70,000 gross salary, single filer, before any local taxes or credits.

State	Income Tax Type	State Tax Owed	Estimated Net Pay
Arizona	Flat 2.5%	$1,348	$56,727
Nevada	No income tax	$0	$58,075
Utah	Flat 4.5%	~$1,460	~$56,615
New Mexico	Progressive, up to 5.9%	~$2,124	~$55,951
Colorado	Flat 4.4%	$2,372	$55,703
California	Progressive, up to 13.3%	~$2,685	~$55,390

Utah’s figure accounts for its state tax credit mechanism rather than a direct standard deduction, so treat it as a close estimate rather than an exact filing number. Nevada has no state income tax at all, which is why it tops this list on take-home pay, though its household budget usually leans more on sales tax to compensate.

Where Your Paycheck Money Actually Goes

Follow a $70,000 Arizona salary from gross to net, in the order it actually leaves your check. First comes federal income tax, calculated on your taxable income after the standard deduction: that’s $6,570 gone before you see a dollar. Next, Social Security takes its flat 6.2% off the top of every paycheck until your year-to-date wages cross the $184,500 cap for 2026, which for most Arizona workers means it applies to the whole salary: another $4,340. Medicare follows right behind at 1.45% with no cap at all, adding $1,015. Only after those three federal deductions does Arizona’s own 2.5% flat tax apply, and because it’s calculated on taxable income (after the same-size standard deduction as the federal return), it adds a comparatively light $1,348. Add it up and $13,273 leaves the paycheck before it’s yours, landing you at $56,727 for the year, or roughly $2,182 every two weeks on a standard biweekly schedule.

How Arizona Got to a Flat 2.5% Rate

Arizona wasn’t always this simple. Before 2021, the state ran four income tax brackets topping out at 4.5% on income above roughly $166,844. Governor Doug Ducey signed Senate Bill 1828 into law on June 30, 2021, a package that set up a phased move to a single flat rate tied to state revenue triggers. Opponents gathered enough signatures to force a statewide referendum, but the Arizona Supreme Court ruled in 2022 that the tax change was exempt from referendum since it fell under the state’s constitutional exception for appropriations. With that legal fight resolved and state revenue running well ahead of the trigger threshold, Ducey ordered the final phase in a year early, making the flat 2.5% rate effective January 1, 2023, instead of the original 2024 target.

Year	Structure	Top Rate
2021 and earlier	Four-bracket progressive system	4.5%
2022	Two-bracket transition	2.98%
2023 to present (2026)	Single flat rate	2.5%

That 2.5% rate remains the lowest state income tax rate in the country among states that actually tax wages, edging out every other flat-tax state including Colorado, Pennsylvania and North Dakota.

Arizona’s Tax Burden vs National Averages

Tax Type	Arizona	National Picture
Income tax	Flat 2.5%	Well below most states; lowest flat rate in the US
Sales tax (avg. combined)	8.52%	Above the national average, offsets the low income tax
Property tax (effective rate)	0.48%	Among the lowest effective rates nationally
Estate / inheritance tax	None	Matches most states post-2005 federal changes

The honest read here is that Arizona’s tax system trades a low, simple income tax for a heavier reliance on sales tax. If most of your spending goes to necessities rather than big discretionary purchases, the income tax savings tend to win out. If you’re a high earner who spends heavily, the sales tax bite eats into some of that advantage, though rarely enough to erase it.

Retirees and Military Retirement Income in Arizona

Arizona is a genuinely strong landing spot for retirees on two specific fronts. Social Security benefits are fully exempt from Arizona income tax regardless of how much other income you have, which isn’t universal across states. Military retirement pay is also fully exempt, a policy that has made Arizona a common relocation choice for retiring service members choosing between Sun Belt states. Public pensions through the Arizona State Retirement System get a partial subtraction depending on contributory versus non-contributory amounts, while private pensions, IRA withdrawals and 401(k) distributions are generally taxed at the same flat 2.5% rate as wage income. Federal civil service pensions (CSRS/FERS) get partial relief for the portion of contributions that were already taxed.

Frequently Asked Questions

Arizona’s paycheck math rewards simplicity: one state rate, no local layer, and full exemptions for Social Security and military retirement pay. Where the state makes up the difference is at the register rather than on the pay stub, through a combined sales tax rate that runs above the national average. For anyone comparing job offers or a relocation across state lines, that trade-off, low income tax against a heavier sales tax, is the one number worth running before the rest.

Figures on this page are estimates for tax year 2026 based on published federal and state rates as of August 2026. They do not account for every credit, deduction, or local circumstance. Verify current figures with the Arizona Department of Revenue or a tax professional before filing.