State and Local Tax (Phoenix, Tucson: sales, homeowners insurance, credit)

[Keira A]

Hello,
I am considering accepting a job in Tucson and I need to find out how much STATE AND LOCAL TAXES are.
I find it very confusing. Is Arizona State Rate 2% or 2.5% or how much? And how much is the rate for Pima County and Tucson City? Am I missing something?
Can anyone help me?
I hope this information is public.
Thanks in advance.

[hikernut]

Arizona now has a flat income tax of 2.5% on income over your deduction amount. (It was different prior to 2023).

https://www.hrblock.com/tax-center/f...-tax-brackets/

To my knowledge there are no local income taxes, but there is a sales tax. It varies from city to city, but it's roughly 8% in most places.

[grmi66]

I live outside of Tucson and unlike cities in the midwest or east coast, we don't have local taxes, school taxes or anything else. Arizona cities in general tend to have high sales taxes in order to have our many tourists help foot the bill for roads and such.

[Greenvalleyfan]

Originally Posted by Keira A

Hello,
I am considering accepting a job in Tucson and I need to find out how much STATE AND LOCAL TAXES are.
I find it very confusing. Is Arizona State Rate 2% or 2.5% or how much? And how much is the rate for Pima County and Tucson City? Am I missing something?
Can anyone help me?
I hope this information is public.
Thanks in advance.

Sales tax in and around Tucson is ridiculously high. But, I found that things like car insurance, homeowners insurance is cheaper then where I came from. So, it all equals out.

[jlawrence01]

Originally Posted by Greenvalleyfan

Sales tax in and around Tucson is ridiculously high. But, I found that things like car insurance, homeowners insurance is cheaper then where I came from. So, it all equals out.

Sales tax is 6.1% in Green Valley and Marana. In some other communities, the sales tax rate is 8.1%. I am paying sales tax on only about 26% of my purchases as many things like food, prescriptions, and services are NOT taxed. (In the Phoenix area, some municipalities like Mesa and

While Arizona DOES have a 2.5% income tax rate, there are a wide variety of non-refundable tax credits for contributions made to organizations like approved social services (Form 321), contributions to public schools (Form 322), contributions to private school tuition support (Form 323), contributions to Arizona Military family relief fund (Form 340), contributions to qualified foster care support organizations (Form 352), and a number of others. If you are going to make contributions to a charitable organization, you might as well make it to an organization where you can get a tax credit.

Unlike some states, there are NO county or city income taxes. There are also NO toll roads statewide.

One thing that no one has mentioned is that the State of Arizona does assess personal property taxes on motor vehicles at the time of registration. Once a vehicle is seven or eight years old, the tax is pretty minimal.

Once you hit age 21, you will find that your drivers license does NOT expire until age 65. Also, you can register your car for up to five years at one time. That way, you lock in the current tax/tax rates for the next five years.


I am not going to say that the State of Arizona has the lowest tax burden overall. However, I will say that when you consider sales tax, property tax, and sales taxes, the total tax burden is often much lower than some of the "no income tax states."

[DAXhound]

8.6 in Nogales..sales tax. They get some fat checks from Amazon for the taxes collected on Mexicans getting delivery to pobs near the port.

[Ex New Yorker]

Originally Posted by jlawrence01

Sales tax is 6.1% in Green Valley and Marana. In some other communities, the sales tax rate is 8.1%. I am paying sales tax on only about 26% of my purchases as many things like food, prescriptions, and services are NOT taxed. (In the Phoenix area, some municipalities like Mesa and

While Arizona DOES have a 2.5% income tax rate, there are a wide variety of non-refundable tax credits for contributions made to organizations like approved social services (Form 321), contributions to public schools (Form 322), contributions to private school tuition support (Form 323), contributions to Arizona Military family relief fund (Form 340), contributions to qualified foster care support organizations (Form 352), and a number of others. If you are going to make contributions to a charitable organization, you might as well make it to an organization where you can get a tax credit.

Unlike some states, there are NO county or city income taxes. There are also NO toll roads statewide.

One thing that no one has mentioned is that the State of Arizona does assess personal property taxes on motor vehicles at the time of registration. Once a vehicle is seven or eight years old, the tax is pretty minimal.

Once you hit age 21, you will find that your drivers license does NOT expire until age 65. Also, you can register your car for up to five years at one time. That way, you lock in the current tax/tax rates for the next five years.


I am not going to say that the State of Arizona has the lowest tax burden overall. However, I will say that when you consider sales tax, property tax, and sales taxes, the total tax burden is often much lower than some of the "no income tax states."