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How Phoenix, Arizona Income Tax & Salary Deductions Work
Phoenix, the fifth-largest city in the United States, offers a booming economy with one of the lowest tax burdens in the country. Arizona's flat 2.5% income tax rate combined with an affordable cost of living makes Phoenix a top destination for professionals seeking maximum take-home pay.
Did you know? Phoenix is the hottest city in the United States, with an average of 299 sunny days per year. It's also one of the fastest-growing cities in the nation, with major semiconductor manufacturing from TSMC and Intel driving a tech boom.
The median household income in Phoenix is approximately $65,000, with rapidly growing sectors in semiconductor manufacturing, aerospace, financial services, healthcare, and technology.
Understanding Your Phoenix, Arizona Paycheck Deductions
When you receive your paycheck in Phoenix, Arizona, several deductions are automatically taken out. These include federal income tax, state income tax, local taxes, Social Security, and Medicare. Our calculator breaks down each of these components so you can see exactly where your money goes.
Phoenix, Arizona Federal & State Tax Rates 2026
The tax rates in Phoenix, Arizona are determined by multiple factors including your income level, filing status, and location. Federal taxes apply to all US residents, while state and local taxes vary significantly by location. Use our calculator above to see your personalized tax breakdown.
Where Your Money Goes in Phoenix, Arizona
78.2%
11.7%
6.2%
1.5%
2.5%
Net Pay
$58,627
Federal Tax
$8,761
Social Security
$4,650
Medicare
$1,088
State Tax
$1,875
| Tax Type | Rate | Amount |
|---|---|---|
| Federal Tax | 11.68% | $8,761 |
| Social Security | 6.20% | $4,650 |
| Medicare | 1.45% | $1,088 |
| State Tax | 2.50% | $1,875 |
| Total Tax | 21.83% | $16,373 |
Salary Calculators Near Phoenix, Arizona
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Frequently Asked Questions
On a salary of $75,000 in Phoenix, Arizona, you would pay approximately $16,373 in total taxes, which represents an effective tax rate of 21.83%. This includes all applicable federal, state, and local taxes, as well as social insurance contributions.
Tax Tips for Phoenix
Expert strategies to maximize your take-home pay
Relocation
Phoenix Tax Advantage: Arizona's 2.5% Flat Tax Makes It a Top Destination
Arizona slashed its income tax to a flat 2.5% — one of the lowest in the nation. See why Phoenix is booming with relocating professionals.
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Retirement Planning
Retiring in Phoenix: Arizona\'s 2.5% Flat Tax and Warm Weather Make It Ideal
Arizona\'s ultra-low 2.5% flat tax, Social Security exemption, and 300 days of sunshine make Phoenix one of America\'s best retirement destinations.
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