Arizona uses a flat state income tax of 2.5% in 2026 — the same rate applies to every dollar of taxable income, which makes your paycheck easy to predict. On a $75,000 salary, a single filer pays about $1,875 in state tax and takes home roughly $59,718 a year (about 79.6% of gross) after federal, state, and FICA withholding.

Arizona's 2.5% rate is below the 4.8% average among states that tax wage income. Because the rate is flat, a raise never pushes part of your income into a higher state bracket — every extra dollar is taxed at the same 2.5%, unlike the federal system where higher earnings hit progressively higher brackets.

Remember that FICA is separate from income tax and is not affected by your state. Every worker pays 6.2% for Social Security on the first $184,500 of wages (the 2026 wage base) plus 1.45% for Medicare on all wages. Pre-tax 401(k) and HSA contributions lower your federal and state income tax but do not reduce FICA — a detail that trips up a lot of first-time budgeters.

Arizona switched from graduated brackets to a single flat rate in 2023, and its 2.5% rate remains the lowest flat income tax in the country. That simplicity extends to withholding: Arizona employees fill out Form A-4 and elect a flat withholding percentage rather than using allowances, so it's worth checking that your elected percentage roughly matches your actual liability to avoid a surprise bill or an oversized refund.