Arizona tax burden — broken down.
Arizona’s combined tax burden (income + property + sales) lands at 8.72% on our composite — ranking #37 of 51 jurisdictions. The top marginal individual income tax rate is 2.50%.
Arizona burden, broken into 3 components
| Component | Arizona rate | National median |
|---|---|---|
| Top marginal income | 2.50% | ~5.30% |
| Effective property | 0.62% | ~1.07% |
| State sales tax | 5.60% | ~5.50% |
| Combined composite | 8.72% | ~11.87% |
National medians from CalcFi’s 51-state composite. Top marginal is the headline single-filer rate, NOT the effective rate most households actually pay.
Retirement + Social Security in Arizona
Arizona taxes most retirement income (pensions, IRA / 401(k) distributions). Social Security benefits are NOT taxed by Arizona. Federal taxation of these income sources is unchanged regardless of state.
How Arizona compares
Of all 51 US jurisdictions ranked by combined burden composite, Arizona sits at #37. That places Arizona in the middle of the pack — burden is moderate without being a particular outlier in either direction. For the live cross-state heat map, see the interactive tax burden map.
Arizona metros — local tax overlay
State rates are uniform across Arizona— but local income, property, and sales taxes vary. Click any metro to run the full income tax calculator pre-populated with that city’s local layer.
- Phoenixproperty 0.62% · pop 5.1Mmedian $67,600 →
- Tucsonproperty 0.62% · pop 1.1Mmedian $50,000 →
- Scottsdaleproperty 0.70% · pop 0.2Mmedian $99,200 →
- Gilbertproperty 0.70% · pop 0.3Mmedian $102,500 →
- Chandlerproperty 0.70% · pop 0.3Mmedian $95,800 →
- Tempeproperty 0.80% · pop 0.2Mmedian $65,200 →
- Surpriseproperty 0.70% · pop 0.1Mmedian $79,500 →
- Glendaleproperty 0.80% · pop 0.3Mmedian $62,500 →
- Mesaproperty 0.70% · pop 0.5Mmedian $65,200 →
- Peoriaproperty 0.70% · pop 0.2Mmedian $82,500 →
Arizona tax — common questions
What is the Arizona top marginal income tax rate in 2025?
Arizona's top marginal individual income tax rate is 2.50% on the highest bracket.
What is the Arizona effective property tax rate?
Arizona's statewide effective property tax rate is 0.62% of home value (annual). On a $400,000 home that's roughly $2,480/yr. Local variation can be ±0.5pp.
Does Arizona tax retirement income or Social Security?
Arizona taxes most retirement income, and does NOT tax Social Security benefits.
Are there any Arizona-specific tax quirks I should know about?
Arizona offers a uniquely generous tax credit for donations to Qualifying Charitable Organizations and Public Schools (dollar-for-dollar credit up to ~$841 single / $1,683 joint), effectively zeroing state tax for many donors.
Reviewed by CalcFi Editorial · Source: Tax Foundation State Individual Income Tax Rates (Jan 2025). Last verified 2026-04-19. Methodology at /about/editorial.