If you live or work in Arizona, you might wonder whether cities like Phoenix or Tucson take an extra cut of your paycheck. The good news is simple: Arizona residents do not pay local (city or county) income taxes. Unlike states such as New York or Maryland, which stack local taxes on top of state taxes, Arizona keeps things straightforward with just a flat state income tax and federal withholdings.
Quick Answer
No. Arizona residents do not pay local (city or county) income taxes. Whether you live in Phoenix, Tucson, Mesa, or Flagstaff, your paycheck will only include federal income tax, Arizona’s state income tax, and payroll taxes like Social Security and Medicare.
Arizona’s Income Tax System
Arizona uses a flat state income tax rate of 2.5% (as of 2025). That means every resident pays the same percentage, no matter their income bracket. On top of this, the IRS collects federal income tax based on your W-4 and filing status.
Unlike states such as New York or Ohio, Arizona law does not allow counties or cities to impose their own income taxes.
Want to see what this looks like on your paycheck? Try the Arizona paycheck tax calculator for a detailed breakdown.
How Arizona Compares to Other States
Here’s a quick snapshot:
| State | State Income Tax | Local Income Tax | Example City |
|---|---|---|---|
| Arizona | 2.5% flat | None | Phoenix |
| New York | Progressive | Yes (NYC) | New York City |
| Maryland | Progressive | County-based | Baltimore |
| Texas | None | None | Dallas |
This table makes it clear: Arizona keeps income taxes simple compared to states that stack state + local taxes on workers’ paychecks.
What Local Taxes Do Exist in Arizona?
While there’s no local income tax, residents still deal with other local taxes:
- Sales tax (Transaction Privilege Tax, or TPT): Rates vary by city or county.
- Property tax: Managed at the county level.
- Specific levies or fees: Such as school or utility district assessments.
But your paycheck itself will never include a city or county income tax deduction.
If you want to understand your net pay after state and federal deductions, check out the Arizona gross-to-net paycheck calculator.
Example Paycheck Scenario
Imagine you earn $70,000 in Phoenix:
- Federal tax: Based on your IRS tax bracket.
- Arizona state tax: 2.5% = $1,750.
- Social Security (6.2%) + Medicare (1.45%).
- No Phoenix or Maricopa County income tax.
That’s why Arizona paychecks are easier to read than in places like New York City, where workers face both state and local income taxes.
To see how benefits like health insurance or retirement contributions change your take-home pay, try the Arizona take-home pay calculator with benefits.
FAQs About Arizona Local Taxes
Do Phoenix or Tucson residents pay a city income tax?
No. Neither Phoenix, Tucson, nor any Arizona city charges local income tax.
Will my paycheck ever show a county income tax deduction?
No. Only state and federal taxes, plus payroll taxes, are withheld.
What local taxes should I expect instead?
Sales tax (TPT) and property tax, depending on where you live.
How does Arizona’s approach compare nationally?
Arizona joins states like Texas and Florida with no local income taxes, making it simpler for employers and workers.
Harry is the creator of ArizonaPaycheckCalculator.com, a trusted resource for accurate and easy-to-use payroll and tax calculators. With a focus on clarity and precision, Harry helps Arizona residents understand their take-home pay, deductions, and withholdings. Dedicated to making complex calculations simple, he combines financial knowledge with user-friendly tools to save users time and confusion.