Arizona Paycheck Calculator — 2.5% Flat Tax, $14.6k/$29.2k Deduction, NO Personal Exemption

When you are deciding where to live or comparing job offers, state taxes make a huge difference. Here is how Arizona compares to other states for a single person earning $60,000 per year with no dependents.

HOW ARIZONA COMPARES TO NO-TAX STATES

Arizona has a 2.5 percent flat state tax. That means on a $60,000 salary, you pay about $1,135 per year in Arizona state tax. Your monthly take-home pay is approximately $4,093.

Texas, Florida, Nevada, Washington, Tennessee, South Dakota, Wyoming, Alaska, and New Hampshire have zero state income tax. In these states, on the same $60,000 salary, your monthly take-home pay is approximately $4,189. That is about $96 more per month or $1,152 more per year compared to Arizona.

The trade-offs with no-tax states: Texas has higher sales tax at 6.25 percent compared to Arizona’s 5.6 percent. Texas also has higher property tax at 1.60 percent compared to Arizona’s 0.60 percent. Florida has higher insurance costs due to hurricanes and floods. For most people, the lower sales tax and property tax in Arizona offset much of the state income tax difference.

ARIZONA VS CALIFORNIA — WHY ARIZONA WINS

California has a progressive income tax from 1 percent up to 13.3 percent plus an additional 1.1 percent SDI tax. On a $60,000 salary in California, you pay about $4,200 in state tax plus about $660 in SDI tax. Your monthly take-home pay is approximately $3,650.

Compared to Arizona’s $4,093 monthly take-home, you save about $443 per month or $5,316 per year living in Arizona instead of California.

The difference grows at higher incomes. On a $100,000 salary, California takes about $10,400 in state tax plus $1,100 in SDI. Arizona takes about $2,500. You save about $7,900 per year in Arizona. On a $150,000 salary, you save about $13,750 per year. On a $200,000 salary, you save about $19,500 per year.

California also has much higher housing costs. A $500,000 home in Phoenix costs over $1,000,000 in Los Angeles or San Francisco.

ARIZONA VS NEW YORK — BIG DIFFERENCE

New York has a progressive income tax from 4 percent up to 10.9 percent. If you live in New York City, you pay an additional local tax up to 3.9 percent.

On a $100,000 salary in upstate New York (outside NYC), you pay about $6,500 in state tax. Your monthly take-home is about $3,850. Arizona gives you about $4,100 monthly take-home. You save about $250 per month or $3,000 per year in Arizona.

If you live in New York City, you pay about $6,500 in state tax plus about $3,900 in city tax, for a total of $10,400. Your monthly take-home drops to about $3,500. Compared to Arizona’s $4,100, you save about $600 per month or $7,200 per year living in Arizona.

ARIZONA VS FLORIDA — CLOSE CALL

Florida has no state income tax. On a $60,000 salary, Florida gives you about $4,189 monthly take-home compared to Arizona’s $4,093. Florida saves you about $96 per month or $1,152 per year.

But Florida has higher sales tax at 6 to 7.5 percent compared to Arizona’s 5.6 percent. Florida also has higher insurance costs due to hurricanes and floods. Florida has high humidity year-round. Arizona has dry heat and cooler evenings.

For many people, the lower insurance costs and more comfortable weather in Arizona offset the small tax difference.

ARIZONA VS COLORADO — SIMILAR COST, LESS TAX

Colorado has a 4.4 percent flat state tax. On a $60,000 salary, Colorado takes about $2,640 in state tax. Your monthly take-home is about $3,950 compared to Arizona’s $4,093. Arizona saves you about $143 per month or $1,716 per year.

Both states have similar cost of living. Both have mountains and outdoor activities. But Arizona has lower state tax (2.5% vs 4.4%), no local tax, and lower housing costs in most areas.

ARIZONA VS UTAH — ARIZONA WINS

Utah has a 4.65 percent flat state tax. On a $60,000 salary, Utah takes about $2,790 in state tax. Your monthly take-home is about $3,940 compared to Arizona’s $4,093. Arizona saves you about $153 per month or $1,836 per year.

Both states have similar lifestyles — desert, mountains, outdoor recreation. But Arizona has a much higher minimum wage at $14.70 per hour compared to Utah’s $7.25. Arizona also has lower sales tax at 5.6 percent compared to Utah’s 6.1 percent.

ARIZONA VS OREGON — ARIZONA SAVES THOUSANDS

Oregon has a progressive income tax from 4.75 percent up to 9.9 percent. On a $60,000 salary, Oregon takes about $5,100 in state tax. Your monthly take-home is about $3,570 compared to Arizona’s $4,093. Arizona saves you about $523 per month or $6,276 per year.

Oregon also has a PFML tax of 0.6 percent, which Arizona does not have. Oregon has no sales tax, but the higher income tax more than cancels out that benefit for most workers.

ARIZONA VS ILLINOIS — ARIZONA WINS

Illinois has a 4.95 percent flat state tax. On a $60,000 salary, Illinois takes about $2,970 in state tax. Your monthly take-home is about $3,920 compared to Arizona’s $4,093. Arizona saves you about $173 per month or $2,076 per year.

Illinois also has higher property taxes, among the highest in the nation. Arizona’s property tax rate of 0.60 percent is much lower than Illinois’ 2.05 percent average.

ARIZONA VS PENNSYLVANIA — ARIZONA WINS

Pennsylvania has a 3.07 percent flat state tax. On a $60,000 salary, Pennsylvania takes about $1,842 in state tax. Your monthly take-home is about $3,990 compared to Arizona’s $4,093. Arizona saves you about $103 per month or $1,236 per year.

But if you live in Philadelphia, you pay an additional 3.75 percent local tax. That adds about $2,250 per year in local tax, making Pennsylvania much more expensive than Arizona.

ARIZONA VS NORTH CAROLINA — ARIZONA WINS

North Carolina has a 4.75 percent flat state tax. On a $60,000 salary, North Carolina takes about $2,850 in state tax. Your monthly take-home is about $3,930 compared to Arizona’s $4,093. Arizona saves you about $163 per month or $1,956 per year.

Both states have similar cost of living. But Arizona has a much higher minimum wage ($14.70 vs $7.25) and no local taxes.

AT HIGHER INCOMES, ARIZONA GETS EVEN BETTER

The difference grows at higher incomes because Arizona’s flat 2.5 percent rate does not increase while progressive states charge more.

On a $100,000 salary: Arizona tax is about $2,500. California tax is about $10,400 plus $1,100 SDI. You save about $7,900 per year in Arizona. New York tax is about $6,500 plus up to $3,900 local. You save up to $7,900 per year. Oregon tax is about $8,800. You save about $6,300 per year.

On a $200,000 salary: Arizona tax is about $5,000. California tax is about $24,500 plus $2,200 SDI. You save about $19,500 per year in Arizona. New York tax is about $19,800 including local. You save about $14,800 per year. Oregon tax is about $16,000. You save about $11,000 per year.

FOR RETIREES — ARIZONA IS EVEN BETTER

Arizona does NOT tax Social Security benefits. This is a huge advantage for retirees.

If you receive $50,000 per year in Social Security benefits, you pay zero Arizona state tax. In Colorado, you would pay about $1,500 to $2,000 in state tax on those benefits. In Utah, you would pay about $1,200 to $1,500. In Connecticut, about $1,200 to $1,800. In Kansas, about $1,400 to $1,800. In Minnesota, about $1,000 to $1,500. In Missouri, about $1,200 to $1,600. In Montana, about $1,000 to $1,400. In Nebraska, about $1,200 to $1,700. In New Mexico, about $1,000 to $1,500. In North Dakota, about $800 to $1,200. In Rhode Island, about $1,000 to $1,500. In Vermont, about $1,000 to $1,500. In West Virginia, about $800 to $1,200.

Arizona keeps your Social Security benefits completely tax-free.

COST OF LIVING COMPARISON

Taxes are not the only factor. Cost of living also affects how far your money goes. Using Arizona as the baseline of 100:

Texas has a cost of living index of 98. Housing is about 5 percent cheaper than Arizona. Groceries are about 3 percent cheaper. Healthcare is about 2 percent more expensive.

California has a cost of living index of 138. Housing is about 65 percent more expensive than Arizona. Groceries are about 15 percent more expensive. Healthcare is about 12 percent more expensive.

Florida has a cost of living index of 102. Housing is about 5 percent more expensive than Arizona. Groceries are about 3 percent more expensive. Insurance costs are much higher due to hurricanes.

New York has a cost of living index of 125. Housing is about 40 percent more expensive than Arizona. Groceries are about 10 percent more expensive. Healthcare is about 8 percent more expensive.

Colorado has a cost of living index of 108. Housing is about 15 percent more expensive than Arizona. Groceries are about 5 percent more expensive.

Utah has a cost of living index of 105. Housing is about 10 percent more expensive than Arizona. Groceries are about 4 percent more expensive.

Oregon has a cost of living index of 112. Housing is about 20 percent more expensive than Arizona. Groceries are about 8 percent more expensive.

WHAT THIS MEANS FOR YOUR PURCHASING POWER

A $60,000 salary in Arizona gives you approximately the same purchasing power as:

$58,800 in Texas because housing is cheaper but taxes are similar

$61,200 in Florida because insurance costs are higher

$82,800 in California because housing is much more expensive

$75,000 in New York because housing and taxes are much higher

$64,800 in Colorado because housing is more expensive

$63,000 in Utah because housing is slightly more expensive

$61,800 in Nevada because housing and taxes are similar

$67,200 in Oregon because housing is more expensive

$58,200 in North Carolina because housing is cheaper

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WHICH STATE IS BEST FOR YOU?

Choose Arizona if you want a low flat tax rate of 2.5 percent, no local income tax anywhere in the state, no SDI tax, no tax on Social Security benefits, moderate cost of living, four distinct seasons, and lower property tax than Texas.

Choose Texas or Florida if you want zero state income tax, warmer weather year-round, and don’t mind higher sales tax and property tax.

Choose California if you want higher salaries that are often 15 to 25 percent higher than Arizona, ocean access, and mild climate — but be prepared for much higher taxes and cost of living.

Choose New York if you want the highest salaries in finance and tech and world-class city amenities — but be prepared for the highest taxes in the nation.

Choose Colorado if you want mountains and outdoor lifestyle and similar cost of living to Arizona — but be prepared for higher state income tax at 4.4 percent.

USE OUR CALCULATOR TO COMPARE FOR YOURSELF

Try our calculator above. Select Arizona and enter your salary. See your take-home pay. Then change the state dropdown to Texas, California, Florida, New York, or any other state. The calculator updates instantly. You will see exactly how much more or less you would take home in each state.

The calculator includes Arizona’s 2.5 percent flat tax, the correct standard deduction of $14,600 for single filers and $29,200 for married couples, no personal exemption, no local tax, no SDI tax, and no tax on Social Security benefits.

The calculator updates instantly with every change. No buttons. No waiting. No signup.