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Arizona State Taxes


State Income Taxes in Arizona

The state of Arizona does have individual income tax. Like mosts states with income tax, it is calculated on a marginal scale whose range is from 2.59% to 4.50% for 2020.

State Business Taxes in Arizona

The state of Arizona has a flat Corporate Tax rate of 4.90%. For other business entities that are flow-thru entities, such as S Corporations, Partnerships, LLCs, etc., they are taxed the individual income tax rates between 2.59% to 4.50% (max.)

Sales and Property Taxes in Arizona

Sales Tax – like many states, Arizona has multiple tax rates. One at the state level and another at the local level. The state rate is 5.60% the average local rate is 2.80% (total average rate for Arizona Sales Tax is 8.40%)

Property Taxes in Arizona – the average property tax rate for residential property in the state of Arizona is 0.67%, making it a very preferable place to own property. In 2012 Arizona placed a 5% cap on the increase of property value, keeping its property taxes relatively low.

Payroll Taxes in Arizona

Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three

  • Wage Base – Arizona has a low wage base of $7,000 for 2020
  • UI Rates – range from 0.04% to 11.80%
  • Schedules – Arizona has only one schedule of rates for UI taxes

Arizona Business Entities – LLCs

Arizona is one of the cheapest states in the country to set up your LLC. Here are some important facts:

  • Arizona does not have an annual LLC fee. Yay!
  • The year you register your LLC, you pay a one time fee of $50.00
  • Secretary of State of Arizona Website – click here

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