Arizona Tax

Arizona Income Tax

Arizona Tax Rate

If you are a resident- or planning to be a resident- of the State of Arizona, knowing about the federal tax structure and the Arizona tax code is absolutely necessary to avoid future confusion when filing your taxes in the future.

Arizona income tax rates are relatively low compared to other states. The rates are graduated; hence, higher incomes also get charged with higher taxes. The Arizona tax code determines the income tax rate paid by taxpayers according to five different brackets. According to this bracket the income tax collected from a taxpayer is as follows:

-Taxable incomes between $0 and $10,000 are levied with a tax rate of 2.59% per dollar.
-Taxable incomes between $10,001 and $25,000 are charged with 2.88% income tax rate.
-Taxable incomes between $25,001 and $50,000 have a tax rate of 3.36% per dollar.
-Taxable incomes between $50,001 and $150,000 are levied with an income tax rate of 4.24%
-Taxable income over $150,000 is charged with 4.54% income tax rate on every dollar.

The income tax brackets are used to compute the amount of tax paid for every dollar earned. As such, a person might have more than one bracket. The taxpayer pays from the lowest bracket up.

Income tax is only applied to taxable incomes, the amount left after the appropriate deductions are applied to the tax return. In the Arizona tax code, an individual is entitled to have an exemption for himself, his spouse, and his dependents. Exemptions vary across the United States, but the rates are $3,800 for personal exemption, $2,300 per dependent, and $2,100 for couples filing for joint income tax exemption in Arizona.