Arizona taxes — property, income, sales, retirement

Home·Tax overview·Arizona

Property tax, income tax, sales tax, and retirement-income treatment in Arizona. Quick read for movers, retirees, and remote workers.

Flat 2.5% income tax (one of the lowest). Low property tax. Decent retirement treatment.
Effective property tax
0.62%
of home value/yr
Income tax (top rate)
2.5%
Sales tax (state)
5.60%
local adds more
SS taxed by state?
No

Property tax

Arizona’s effective property tax rate is approximately 0.62% of assessed home value per year. On a $350,000 home that’s about $2,170/yr. Rates vary by county and municipality — this is a state-wide average.

Income tax

Top marginal rate: 2.5%. Brackets vary by income. For wage earners, the effective rate depends on filing status, deductions, and credits.

Sales tax

State base rate: 5.60%. Local municipal and county additions can raise the combined rate by 1-4 percentage points.

Retirement income

Social Security: Not taxed by state. Pensions & 401(k) withdrawals: Partial exclusion / credit available.

Top cities in Arizona

Phoenix · pop 1,673,164 · momentum 52

Tucson · pop 554,013 · momentum 56

Mesa · pop 517,151 · momentum 53

Gilbert · pop 288,790 · momentum 57

Chandler · pop 281,231 · momentum 51

Glendale · pop 258,143 · momentum 52

Compare to other states: All 50 state tax overviews · All Arizona cities · Best Arizona cities for retirees

Sources: Tax Foundation effective property tax rankings, state DOR publications, AARP retirement tax guide. 2024/2025 representative figures — verify with a CPA for your specific situation.