Arizona state earnings tax charges are 2.59%, 3.34%, 4.17% and 4.50%. Arizona state earnings tax brackets and earnings tax charges depend upon taxable earnings, tax-filing standing and residency standing.
Typically, it’s a must to file an Arizona state earnings tax return in case you’re a resident, part-year resident or nonresident and you’ve got gross earnings above these quantities:
Arizona gross earnings equals your federal gross earnings minus curiosity from authorities bonds, Social Safety retirement advantages, Railroad Retirement Act advantages, energetic responsibility army pay and pay for service within the Nationwide Guard.
There are three sorts of residency statuses on the subject of Arizona state earnings tax. They decide what portion of your earnings the state will tax.
» Discover a native tax preparer in Arizona free of charge:
On the whole, you’re a resident of Arizona for tax functions in case your main, everlasting house is there otherwise you spent greater than 9 months there throughout the tax 12 months. Arizona residents file Type 140, 140A or 140EZ.
for the way Arizona determines residency standing.
Typically, you’re a part-year resident of Arizona in case you had been a nonresident for a number of the tax 12 months. That is typically the case for individuals who moved to Arizona from one other state.
In case you’re a part-year resident, you sometimes pay Arizona state tax on all earnings you obtained throughout the a part of the tax 12 months you had been a resident of Arizona, plus state earnings tax on earnings simply from Arizona sources whilst you had been a nonresident. Half-year residents file Type 140-PY.
» Must file in a number of states?
Nonresidents nonetheless could should pay Arizona state tax on earnings they obtain from Arizona sources. This implies it’s possible you’ll must file an Arizona state earnings tax return even in case you dwell in one other state however made cash from Arizona-related issues corresponding to:
We have weighed the professionals and cons of some main gamers within the area.