![]() Arizona corporate tax ratesĪrizona has a relatively low corporate income tax rate of 4.9% in 2023, which remains unchanged from 2022. Arizona income tax ratesįor tax year 2023, Arizonans at all income levels pay 2.5% of their taxable income.įor tax year 2022, there were two tax rates - 2.55% and 2.98% - that applied to all personal income, down from four rates ranging from 2.59% to 4.5% in 2021. Note: Arizona taxpayers who opt to claim the standard deduction instead of itemizing their deductions may be eligible for a larger amount if they donate to charity. Here are the 2023 standard deduction amounts: The deadline to file is April 15 - the same as the federal deadline. Who pays Arizona income taxes?įull-year and part-year residents of Arizona whose adjusted gross income is more than the standard deduction for their filing status must file a tax return. Note: The flat rate applies to income earned in 2023, which will be reported on the tax return you file in 2024. "The new 2.5% flat tax can be looked at differently depending on the income of the resident, but overall the implication falls with the middle to lower class residents feeling as though the rich 'are going to get richer,'" says Christian Maldonado, CEO and founder of accounting firm Finsult. In general, higher-income taxpayers stand to see the most tax savings from the new rate. Among states with a flat tax, Arizona's is the lowest. But due to strong economic growth and a budget surplus, the Arizona Department of Revenue was instructed to fully implement the flat tax in 2023.įewer than a dozen states impose a flat tax, opting instead to tax income progressively (or not at all). The state most recently had a two-rate individual income tax system with rates of 2.55% and 2.98%, and a plan to phase-in a new flat tax over three years, beginning in 2024. ![]() See Personal Finance Insider's picks for the best tax software > How does Arizona tax income?Īrizona implemented a flat income tax rate of 2.5% in January 2023. Flat taxes make calculating state tax liability simpler, since all taxpayers pay the same rate, regardless of income level. After years of imposing a progressive tax on income, Arizona switched to a flat tax in 2023.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |