How Arizona taxes work

Federal AGI starts the calculationArizona generally begins with federal adjusted gross income, then applies state additions and subtractions.
The supported rate is 2.5%The calculator applies Arizona's flat individual income-tax rate to its simplified Arizona taxable-income estimate.
A standard deduction is includedThe 2026 estimate uses $16,100 for single or separate, $24,150 for head of household, and $32,200 for joint filing.
Credits are not automaticDependent, charitable-organization, school-tuition, and other Arizona credits are outside this streamlined model.
Residency controls the tax baseFull-year residents generally report income from all sources; nonresident and part-year allocation is not modeled.

Common Arizona tax questions

Does Arizona use tax brackets?Arizona currently uses a single 2.5% individual rate rather than multiple marginal brackets.
Can Arizona itemizing differ from federal itemizing?Yes. The state permits its own deduction choice, but the calculator uses only the supported standard deduction.
Is the charitable deduction increase included?No. The qualifying percentage and credit interaction require contribution details the calculator does not collect.
Are dependent credits included?No. The qualifying person's age, relationship, and income phaseout require return-specific review.
Is a local Arizona wage tax added?No broad local individual wage tax is added by this preset.
Is this Form 140?No. It is a resident planning estimate and does not reproduce every Arizona adjustment or credit.