Arizona tax planning for independent workers
Arizona moved from a graduated bracket system to a single flat rate of 2.5% on all taxable income starting with the 2023 tax year, and that flat rate remains in place for 2026. That makes Arizona one of the simpler states to plan around in this comparison: net profit, minus the standard deduction, times 2.5%.
Arizona's standard deduction generally tracks the federal standard deduction and is adjusted for inflation each year. The most recently published amounts - $15,750 for a single or married-separate filer, $31,500 for married filing jointly, and $23,625 for head of household - are the figures used in this tool. Arizona typically publishes the following year's inflation-adjusted amount later in the year, so the actual 2026 deduction may be slightly higher than shown here once the state confirms it.
The federal portion of the estimate is unchanged from the rest of this tool: it applies the site's existing federal income-tax bracket function and the existing self-employment-tax function to net profit, then adds the Arizona flat-rate result on top. Arizona also allows taxpayers who don't itemize to increase their standard deduction using a percentage of qualifying charitable contributions, which is not modeled in this simplified comparison.
Use the Arizona preselected comparison calculator to see the combined result, then visit the Quarterly Tax Calculator for federal payment planning. The main state comparison lets you compare Arizona with the other states in this tool at the same income.
Because the standard deduction is adjusted annually, confirm the current published amount with the Arizona Department of Revenue before relying on this estimate for a filing or relocation decision, and consult a tax professional for your specific situation.