Arizona is the simplest state schedule in this batch to reason about, because there is no bracket climb at all. Every dollar of taxable income is taxed at 2.5 percent, whether it is the first dollar or the hundred thousandth. The only thing that changes the bill is the standard deduction, which is subtracted before the rate is applied.
Enter your salary and filing status to see the flat Arizona line beside federal tax and FICA.
Worked example first: $80,000 single
Take a single filer with an $80,000 salary and no pre-tax deductions. The standard deduction is $8,350, so Arizona taxable income is $71,650. At 2.5 percent, the state tax is $1,791.25. Paid biweekly, that is $1,791.25 divided by 26, about $68.89 per paycheck.
The marginal rate and the effective rate on taxable income are the same number here, 2.5 percent, because a flat rate has no lower slices. The effective rate on gross pay is lower, $1,791.25 divided by $80,000, about 2.24 percent, and the entire gap between the two is the standard deduction doing its work, not a bracket.
A raise is equally simple to price. A $5,000 raise, with no change in deductions, adds $125 of Arizona tax, because 2.5 percent of $5,000 is $125. There is no threshold where the next dollar suddenly costs more, which is the main practical difference from a progressive state.
The schedule, in full
There is one rate for both filing statuses: 2.5 percent on all taxable income, single and joint alike. What differs by status is the standard deduction: $8,350 single and $16,700 joint. A joint household earning $80,000 therefore has taxable income of $63,300 and state tax of $1,582.50, which is $208.75 less than the single figure on the same salary, purely because the deduction is twice as large.
Source for the rate and deductions: Tax Foundation 2026 State Income Tax Rates and Brackets, as of 1 January 2026. One caution travels with that source: the deduction figures are the January 2026 Tax Foundation figures, which reflect pre-OBBBA federal conformity rather than the higher 2026 federal standard deduction. A reader mixing federal and state deductions in one calculation should re-check Arizona conformity before relying on the combined figure. The state tax figure on its own is unaffected by that note.
What a flat rate does not mean
A flat state rate does not mean a flat total tax bill. Federal tax is still progressive, Social Security still stops at its wage base, and Medicare still applies at 1.45 percent with an extra 0.9 percent over the high-income threshold. A reader who looks only at the 2.5 percent line will understate what actually leaves the paycheck, because the state line is usually the smallest tax line on an Arizona stub.
This guide gives general information only, not a determination for an individual return. For the federal side of the same stub, see the federal brackets guide, and for why marginal and effective rates coincide here but not in progressive states, see the marginal rate guide linked from the paycheck hub.
FAQs
Is Arizona's rate really the same at every income?
Yes, for state income tax in 2026. The 2.5 percent rate applies to all taxable income. Income below the standard deduction is not taxed, because taxable income is zero, not because the rate changes.
Do I need to know my bracket in Arizona?
No, there is only one rate, so there is no bracket to identify. The question that matters is the standard deduction for your filing status, since that sets taxable income.
Why does my Arizona withholding differ from 2.5 percent of my pay?
Withholding is usually calculated on taxable pay after the standard deduction is spread across paychecks, and pre-tax deductions change the base. Compare the annual state total, not one paycheck, with the worked figure.