Arizona self-employment tax at a glance
Arizona's 2.5% flat tax is the lowest flat income tax rate in the country, and the standard deduction mirrors the federal amount. That makes Arizona attractive for freelancers who want sunshine without Texas-style property taxes.
- State income tax: a flat 2.5% income tax (top marginal rate 2.5%)
- Standard deduction / exemption: $16,100 single, $32,200 married filing jointly
- Estimated payments: Form 140ES
- Tax agency: Arizona Department of Revenue
- Local income taxes: None for most residents
How Arizona compares: take-home pay on 1099 income
The table compares a single filer with no business expenses in Arizona with the average state income tax across the15 states we cover and with a state that has no income tax. Every column includes self-employment tax and federal income tax.
| Net profit | Arizona state tax | Avg. state tax | Total tax | Arizona take-home | No-income-tax state |
|---|---|---|---|---|---|
| $50,000 | $759 | $1,158 | $10,491 (21.0%) | $39,509 | $40,268 |
| $75,000 | $1,340 | $2,012 | $16,835 (22.4%) | $58,165 | $59,505 |
| $100,000 | $1,921 | $2,912 | $24,285 (24.3%) | $75,715 | $77,635 |
| $150,000 | $3,083 | $4,749 | $40,690 (27.1%) | $109,310 | $112,392 |
| $250,000 | $5,478 | $8,541 | $72,432 (29.0%) | $177,568 | $183,046 |
2026 Arizona income tax brackets
| Single rate | Single taxable income | Married rate | Married filing jointly |
|---|---|---|---|
| 2.5% | Over $0 | 2.5% | Over $0 |
How this calculator works
- Net profit is your gross 1099 income minus deductible business expenses.
- Self-employment tax is 15.3% (12.4% Social Security up to the $184,500 wage base, plus 2.9% Medicare) on 92.35% of net profit.
- Federal income tax applies the 2026 brackets after subtracting half of your SE tax, the standard deduction and the 20% qualified business income (QBI) deduction.
- Arizona tax applies Arizona's brackets to your adjusted gross income after the state deduction or exemption.
- Quarterly payments divide the annual federal amount evenly.
Not included: credits, itemized deductions, retirement contributions (SEP-IRA, Solo 401(k)), self-employed health insurance deduction and local taxes. Each of these usually lowers the bill, so treat the result as a conservative upper estimate.