What is the state income tax in Arizona?

As of 2023, Arizona has a progressive state income tax system with rates ranging from 2.59% to 4.50%, depending on income brackets. The rates apply to taxable income, and the state has made changes in recent years to simplify and reduce taxes for lower and middle-income earners. Additionally, there is a flat tax rate of 2.5% for individuals earning above a certain income threshold starting in 2025. Always check with the Arizona Department of Revenue or a tax professional for the most current information.