Individual Income Tax: 

Arizona’s individual income tax (IIT) is levied on residents’ taxable income, using federal adjusted gross income as the starting point. Beginning in 2023, all filers pay a flat rate of 2.5%. Individual income tax is a key revenue source, making up 31% of Arizona’s General Fund in FY 2025, with a portion shared with cities and towns.

Corporate Income Tax:

Arizona’s corporate income tax (CIT) is charged on the profits of businesses operating in the state. It averages around 10% of the state’s major revenues, with a portion shared with cities and towns.

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State Shared TPT:

Arizona’s Transaction Privilege Tax (TPT) is a tax on businesses for the privilege of operating in the state, similar to a sales tax but charged to the seller rather than the buyer. TPT is the state's largest revenue source, representing an average of 46% of the state's major revenues.

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Insurance Premium Tax:

Arizona’s insurance premium tax (IPT) is charged on premiums collected by insurers for policies covering risks in the state, including life, health, property, vehicle, and other types of insurance.​ In FY 2025, IPT comprised just over 5% of the state's major revenues.

Values represent average % of County GF Revenues

 

Primary Property Tax: ​​​​

Property tax rates and collections are determined annually by the Board of Supervisors, subject to a number of different limits set in the state's constitution and laws. On average, 40% of county's major revenues is from primary property tax.

 

Local Excise Taxes: 

12 of Arizona's 15 counties have currently levy a local excise tax, at a maximum rate of 10% of the state's TPT rate, or one half-cent. Typically, local sales taxes comprise around 13% of rural counties' major revenues.

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State Shared TPT:

Arizona’s Transaction Privilege Tax (TPT) is a tax on businesses for the privilege of operating in the state, similar to a sales tax but charged to the seller rather than the buyer. For counties, state shared TPT typically comprises between 30-37% of county major revenues.

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General Fund VLT:

​​The Vehicle License Tax (VLT) is an ad valorem tax levied on registered vehicles in the state. The tax is levied per $100 of a vehicle’s assessed value. VLT comprises an average of 6-8% of county major revenues.