Arizona
By the Numbers

Arizona Below is a snapshot of key features of Arizona's tax system. (Scroll Down)
State & Local Revenue (FY10)
  • General Revenue, Own-Source (GROS): $28.6 billion
  • General Revenue as a Share of Income: 13.3%
  • Tax Revenue: $19.6 billion
  • Tax Revenue as Share of income: 9.1%
  • Personal Income Tax (Share of Tax Revenue): 12.3% (41 out of 51)
  • Corporate Income Tax (Share of Tax Revenue): 2.1 % ( 36 out of 51)
  • Sales & Excise Tax (Share of Tax Revenue): 44.3 % ( 12 out of 51)
  • Property Tax (Share of Tax Revenue): 37.3 % ( 17 out of 51)
  • Other Taxes (Share of Tax Revenue): 3.0 % (43 out of 51)
Personal Income Tax Features (2012)
  • Range of Tax Rates: 2.59% - 4.54%
  • Standard Deduction: $4,703 ($9,406 for Married Couples) (2011)
  • Personal Exemption: $2,100 (Extra $2,100 for Married Couples With Children and Heads of Housholds)
  • Dependent Exemption: None
  • Earned Income Tax Credit (EITC): None
  • Notable capital gains preference
  • Deduction for state income taxes paid
  • Offers low-income credit designed to offset personal income taxes
Corporate Income Tax Features (2012)
  • Range of Tax Rates: 6.968%, phasing-down to 4.9% by 2017
  • Income Level at Which Top Rate Applies: All
  • Combined Reporting: Yes
  • Apportionment Factor (Payroll): 25%
  • Apportionment Factor (Property): 25%
  • Apportionment Factor (Sales): 50%
  • Apportionment Note: Certain corporations may use 10% payroll / 10% property / 80% sales formula
Sales Tax Features (2012)
  • State Sales Tax Rate: 5.60%
  • Average Local Sales Tax Rate: 1.60%
  • Average Combined State & Local Sales Tax Rate: 7.20%
  • State Sales Tax Treatment of Groceries: Exempt
  • Local Sales Tax Treatment of Groceries: Taxed
  • Number of Services Taxed: 55 out of 168 surveyed (2007)
  • Streamlined Sales Tax Membership: No
  • Sales tax is actually a Gross Receipts Tax (GRT)
  • Sales tax is actually a Gross Receipts Tax (GRT)
  • Sales tax is actually a Gross Receipts Tax (GRT)
Property Tax Features (2012)
  • Fails to provide a notable, all-ages circuit breaker.
  • Levies a modest statewide property tax.
  • Utilizes split roll system.
Other Tax & Revenue Features (2012)
  • Gasoline Tax Rate (per gallon): $0.19
  • Diesel Tax Rate (per gallon): $0.19
  • Cigarette Tax Rate (per pack): $2.00
  • Estate or Inheritance Tax: No
  • Net Lottery Sales Per Capita: $80 (2010)
Tax Policy Oversight
  • Tax Expenditure Report: Yes
  • Tax Incidence Analysis Capability: Personal income tax only

Last Updated October 4, 2012

Sources & Glossary