Arizona State Income Tax Overview

Arizona is one of the many states that has a state income tax.  Therefore, those who live in Arizona or earn income from a business or other source of revenue based in Arizona may have to file a state income tax return for Arizona, in addition to the federal income tax return that the Internal Revenue Service (IRS) requires each year.

Below are frequently asked questions and answers specific to state income tax in Arizona.

Who has to file a state income tax return for Arizona?

The Department of Revenue for Arizona determines who has to file a state income tax return based on the taxpayer’s filing status, Arizona adjusted gross income, and overall gross income.  The table below provides a summary of those who have to file:

You must file if you are: And your Arizona adjusted gross income is at least Or your gross income is at least
Single $5,500 $15,000
Married filing jointly $11,000 $15,000
Married filing separately $5,500 $15,000
Head of household $5,500 $15,000

If you are a resident of Arizona, you must include income from all sources, even those outside of Arizona, in performing the above calculations.

To determine if you need to file an Arizona state income tax return, start with your gross income for federal income tax purposes and subtract income that the Arizona Department of Revenue does not tax.

Revenue that Arizona tax law does not tax include the following:

  • Interest from United States Government obligations
  • Social security retirement benefits
  • Railroad Retirement Act benefits
  • Military pay while on active duty
  • Pay received for active service as a reservist or a member of the National Guard

What is the tax rate for Arizona state income tax?

Arizona uses the following tax tables to determine the amount of tax owed:

Married Filing Jointly or Head of Household

Taxable Income Multiplied by Minus
$0 to $10,000 .0259 $0.00
$10,001 to $25,000 .0288 $29.00
$25,001 to $50,000 .0336 $149.00
$50,001 to $150,000 .0424 $589.00
$150,001 and above .0454 $1,039.00

Single or Married Filing Separately

Taxable Income Multiplied by Minus
$0 to $20,000 .0259 $0.00
$20,001 to $50,000 .0288 $58.00
$50,001 to $100,000 .0336 $298.00
$100,001 to $300,000 .0424 $1,178.00
$300,001 and above .0454 $2,078.00

When do I need to file a state income tax return for Arizona?

Taxpayers must file state income tax returns for Arizona by April 15 or the first non-holiday business day after April 15 when it falls on a holiday or weekend.  An extension of six months is available for those who receive an extension on their federal income tax return or request an extension with the Arizona Department of Revenue.

If you do not file your tax return or pay any tax owed by the due date of that tax year, Arizona charges a late filing penalty of 4.5% of the tax due per month and a late payment penalty of 1.5% of the tax due per month.

Where can I get help from to prepare my Arizona state income tax return?

The information above is not legal or tax advice, but you can obtain help in preparing and filing your Arizona state income tax return by contacting a tax attorney who is family with Arizona tax law.

 

by Mark Johnston

Mark has been a contributor to legal web sites related to bankruptcy, tax, and criminal law since 2011. He has an Accounting degree from Texas A&M University.