Taxation in Arizona

Updated on Wednesday 27th June 2018

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Arizona is among the American states where the business develops in a solid and reputable climate. Foreign investors need to observe the taxation structure in Arizona and to align with the conditions imposed for each type of company. In matters of company formation in USA and the ways in which your business can operate on the market, we suggest you to address your inquiries to our team of company formation specialists in USA. We are also at your disposal with in-depth information about the taxes that companies and natural individuals need to pay.

The sales tax in Arizona

One of the main taxes in Arizona, which concern companies with goods and services for sale purposes on the market, is the general sales tax. This is set at a rate of 5.6%, but it is good to bear in mind that municipalities in Arizona are entitled to collect their own sales tax which must not exceed 4.6% rate.

The corporate tax in Arizona

Corporations in Arizona are subject to a corporate tax of 4.9%. As for the limited liability companies in Arizona, for example, with a net income of $100,000 in a year, the corporate tax will be imposed on each partner. If you want to start a business in USA and particularly in Arizona, we invite you to talk to our company formation agents in USA for complete assistance and information in tax matters.

What are the taxes for individuals in Arizona?

Residents in Arizona need to consider the personal income tax in accordance with their registered revenues and status, as seen in the table below:
Taxable Income Tax Rate
$0 - $10,179 2.59%
$10,179 - $25,445 2.88%
$25,445 - $50,890 3.36%
$50,890 - $152,668 4.24%
$152,668+ 4.54%

Understanding the tax requirements in Arizona can be done with complete support offered by our team of company incorporation consultants in USA

What is the personal property tax in Arizona?

Properties used for industrial, commercial and agricultural purposes in Arizona are subject to a personal property tax which is payable in two tranches, if it is more than $100. Half of the tax can be paid until October and the other half needs to be paid until the following March. Please note that penalties are imposed for late payments of the personal property tax.

The inheritance tax in Arizona

It is good to know that the state of Arizona imposes no inheritance tax or a gift tax.

How do I pay the taxes in Arizona?

Entrepreneurs and natural persons in Arizona can pay the taxes using debit and credit cards or by checks through the local tax offices or via the internet, on the official website of the Arizona Department of Revenue. We are at your disposal with support and information about the taxes in Arizona, so please feel free to contact our advisors at any time.