Tax Attorneys in Arizona

The Arizona Department of Revenue (ADOR) administers taxation, including the flat 2.5% income tax, one of the lowest in the U.S. Property taxes are below the national average, while sales tax can exceed 11% in high-tourism areas. Social Security benefits are exempt, but some retirement income is taxable. Arizona’s tax structure favors businesses with various incentives. However, reliance on sales tax means higher costs for consumers, particularly in cities like Phoenix and Tucson.

Arizona levies a flat 2.5% income tax, one of the lowest in the U.S. Social Security benefits are fully exempt, but some retirement income, such as 401(k) and IRA withdrawals, is taxed. The state also provides standard and itemized deductions, along with a family tax credit. Individuals i.e., full year resident and part-time residents in Arizona with an adjusted gross income of at least $5,500 must file taxes, and an Arizona resident is subject to tax on all income, including from other states. For the 2024 tax year, individuals with the following gross income must file taxes.

Individuals must file if they are:

• Single and their gross income is more than $14,600
• Married filing jointly and their gross income is more than $29,200
• Married filing separately and their gross income is more than $14,600
• Head of household and their gross income is more than $21,900

Arizona also has a 5.6 % state sales tax rate and an average combined state and local sales tax rate of 8.38 %. Its corporate income tax rate is 4.9%. The Arizona Department of Revenue (ADOR) administers income tax, and wage earners are subject to state withholding. With no local income tax, Arizona remains attractive for businesses and retirees.

Arizona’s tax exemptions primarily benefit retirees and certain industries:

• Social Security benefits
• Some military and railroad retirement benefits are fully exempt.
• Certain medical expense deductions
• Disability payments (if qualified)
• Business-related exemptions for specific industries

Arizona offers tax exemptions such as:

• Groceries: they are exempt from state taxes but local taxes may apply
• Transaction Privilege Tax (TPT) exemptions for specific business transactions, including wholesale sales and manufacturing equipment​.
• Property tax exemptions for disabled veterans and widows/widowers.
• Income tax exemptions on Social Security benefits.
• Blind taxpayer or their spouse are eligible for a $1,500 exemption deduction.
• Seniors that are 65yrs old or olderare eligible for a $2,100 exemption deduction.
• Agricultural and religious organization exemptions for property and certain transactions
• 529 (Education Savings Account) contributions

1. State Income Tax: Arizona imposes a flat income tax rate of 2.5% on taxable income.
   You can file Arizona state income tax using:
   • AZTaxes.gov: The Arizona Department of Revenue offers AZTaxes.gov, a free online portal for taxpayers to file their state tax returns electronically.
   • Approved Third-Party Software: Taxpayers can use authorized e-file providers to submit their state returns. A list of approved software vendors is available on the Arizona Department of Revenue’s website.
2. Federal Income Tax Filing: You can file your federal income tax using –
   • IRS Direct File: As of the 2025 tax season, eligible Arizona residents can use the IRS Direct File service to prepare and file their federal tax returns online directly with the IRS for free
   • Use IRS Form 1040 for personal federal taxes.
   • File online through the IRS Free File, tax software, or with a tax professional.
3. Property Tax: Administered at the county level.
4. Sales Tax (Transaction Privilege Tax): Businesses must register with the Arizona Department of Revenue and can file returns online via AZTaxes.gov.

Arizona tax lawyer fees depend on factors like case complexity and legal services required.

TaxLawyer.com helps Arizonans find skilled tax attorneys who offer strategic tax solutions without burdening their finances. Our directory and in-house legal team ensure you access the right expertise for your tax concerns.

Choosing the right Arizona tax attorney involves:

• Defining your tax issue (IRS disputes, wage garnishment, voluntary disclosure, etc.).
• Researching qualified Arizona tax lawyers with proven experience.
• Scheduling a consultation to explore your legal options.
• Understanding legal fees and service terms before proceeding.

TaxLawyer.com streamlines this process by helping Arizonans connect with top tax attorneys who can effectively handle their tax concerns.

Find a Qualified Tax Lawyer in Your Area

Select your City or County below to connect with an experienced tax lawyer today:

Arizona:

• Phoenix

Arizona offers a simplified tax structure with business-friendly policies.

• Income Tax: Flat 2.5% rate starting in 2023, benefiting individuals and businesses.
• Sales Tax: State rate is 5.6%, but combined local rates can exceed 10%.
• Property Tax: Arizona has a 0.45 % effective property tax rate on owner-occupied housing value.
• Corporate Tax: 4.9% on net income, among the lowest in the U.S.
• Estate or Inheritance Tax: Arizona does not have an estate tax or inheritance tax.
• Tobacco and Fuel Tax: Arizona has a 19 cents per gallon gas tax rate and a $2.00 cigarette excise tax rate.
• Vehicle license tax: You’ll be charged a vehicle license tax as part of the annual fee to register your vehicle.