Arizona Personal Income Tax:
Arizona does have a State Income Tax. It applies to Residents and Non Residents that earn any income in Arizona. The Arizona State Income Tax is based upon your Federal Tax Return with several adjustments. Currently the rate is approximately 6% of your Federal Tax Liability.
Arizona Property Taxes:
In Tucson just budget 1.25% of the sale price of the home you are purchasing and you will be close. See our
Tucson Property Tax page for detailed Property Tax Information.
Arizona Sales Tax:
Sales Taxes in the Tucson metropolitan area are a combination of State and Local Sales Taxes and currently run approximately 7.6%. Arizona currently does not charge a State Sales Tax on Food for home use but some cities do. The State also does not charge Sales Tax on Prescription Drugs.
Arizona Vehicle Tax:
The registration fee for your vehicle is generally less than $10. However, there is also a Vehicle License Tax assessed at the time you register your vehicle. This one is the biggie, it is basically the equivalent of the personal property tax charged by most other states. The more valuable your vehicle is, the higher your Vehicle License Tax will be. Each year when you renew, your costs will be less as the vehicle declines in value.
Arizona Estate Tax:
Arizona does not currently impose an inheritance tax or a gift tax.