Arizona payroll taxes Arizona adopted a 2.50% flat income tax starting with the 2023 tax year. There are no local city payroll taxes.
Each municipality and county sets their own tax rate, therefore the total tax rate varies throughout the state. The transaction privilege tax rate for Prescott is 2%. For most business classifications, the combined rate for the State of Arizona and Yavapai County is 6.35%.
Arizona has a flat 2.50 percent individual income tax rate. Arizona has a 4.9 percent corporate income tax rate. Arizona also has a 5.6 percent state sales tax rate and an average combined state and local sales tax rate of 8.38 percent.
Pima County sales tax details The minimum combined 2025 sales tax rate for Pima County, Arizona is 11.1%. This is the total of state, county, and city sales tax rates. The Arizona sales tax rate is currently 5.6%.
The state sales tax rate in Arizona is 5.6%. To calculate the full tax rate, including the rate for local taxes, use the TaxJar sales tax calculator. Services in Arizona are generally not taxable, with a few exceptions. Tangible products are taxable in Arizona, with a few exceptions.
Tucson sales tax details The minimum combined 2025 sales tax rate for Tucson, Arizona is 8.7%. This is the total of state, county, and city sales tax rates.
Pima sales tax rate is 8.60%. Arizona 5.60% Graham County 1.00% Pima 2.00% District / Special Tax 0.00% Combined Sales Tax Rate8.60%
The Senior Valuation Protection Program, as established by the Arizona Constitution and administered by the Pima County Assessor's Office, is designed to freeze the limited property value (the taxable value) of a primary residence owned by qualifying seniors.
Arizona has a 4.9 percent corporate income tax rate. Arizona also has a 5.6 percent state sales tax rate and an average combined state and local sales tax rate of 8.38 percent. Arizona has a 0.45 percent effective property tax rate on owner-occupied housing value. Arizona does not have an estate tax or inheritance tax.
Pima sales tax details The minimum combined 2025 sales tax rate for Pima, Arizona is 8.6%. This is the total of state, county, and city sales tax rates. The Arizona sales tax rate is currently 5.6%. The Pima sales tax rate is 2.0%.