Arizona Overtime Calculator 2026
Calculate your Arizona take-home pay including overtime. Overtime pays 1.5× your regular rate for all hours over 40 per week under federal FLSA rules.
Arizona Income Tax Overview
Arizona has a flat income tax rate of 2.5% — one of the lowest flat rates among states that have income tax at all. This rate applies to all Arizona taxable income regardless of how much you earn. Before 2023, Arizona had a progressive multi-bracket system with rates up to 4.5%; the move to a flat 2.5% was a significant cut, particularly for higher earners who previously faced the higher brackets. Arizona's standard deduction is $8,350 for single filers — lower than the federal $14,600, meaning a bit more income is exposed to state tax than to federal tax. No Arizona city charges a local income tax on wages, so take-home pay is identical in Phoenix, Tucson, Scottsdale, Mesa, and every other city.
Here's what a single Arizona filer keeps in 2026. On a $50,000 salary, take-home is approximately $41,124 per year ($3,427/month) after federal, FICA, and state taxes — state income tax costs roughly $1,041. At $80,000, take-home is $62,787 ($5,232/month), with state tax totaling $1,791. At $100,000, you keep $76,357 ($6,363/month), with $2,291 going to Arizona. At $150,000, take-home is $109,641 ($9,137/month), with the state taking $3,541.
Compared to neighboring California, an Arizona worker earning $80,000 takes home approximately $3,332 more per year — purely from the difference in state income tax. At $100,000, the Arizona advantage over California grows to roughly $6,500 per year. Against Nevada (no income tax), Arizona workers at $80,000 pay about $1,791 more in state tax. Against New Mexico (up to 4.9% for most earners), Arizona's 2.5% flat rate saves roughly $800 per year at $80,000.
Watch out: While Arizona's income tax is very low, Arizona has a relatively high state and local combined sales tax — the average combined rate is around 8.4%, above the national average. For high-spending households, the sales tax burden is meaningful. Arizona also has a Proposition 208 history (a 3.5% surcharge on high earners that was enacted and then struck down) — while that specific surcharge is no longer in effect, Arizona voters can and do modify the tax code through ballot initiatives. The current 2.5% flat rate was legislated and is stable, but keeping an eye on ballot initiatives is advisable for long-term planning.