Tax Lawyers in Phoenix

In Phoenix, Arizona, taxes are levied at the state, county, and city levels. Arizona imposes a flat state income tax rate of 2.5% for all income levels, with no additional local income tax in Phoenix. This means all residents, regardless of earnings, pay the same 2.5% to the state.

For sales, Phoenix applies a Transaction Privilege Tax (TPT), commonly called sales tax, with a combined base rate of 8.6%-including 5.6% (state), 0.7% (Maricopa County), and 2.3% (city).

Rates vary by business type:

• Advertising: 0.5%
• Commercial Rentals: 2.4%
• Hotels/Motels: 8.3% (5.3% + 3.0% lodging tax)
• Restaurants & Retail Sales: 8.6%
• Short-Term Vehicle Rental: 4.3%
• Telecommunications: 4.7%
• Utilities: 2.7%

Businesses must collect the appropriate TPT and remit it to the Arizona Department of Revenue

In Phoenix, Property taxes are based on assessed values from Maricopa County and include levies from the city, school districts, and special districts. Rates vary by location.

The Arizona Department of Revenue and the Maricopa County Treasurer are the primary bodies overseeing tax collection in Phoenix.

In Phoenix, income is taxed at the state level by Arizona with a flat rate of 2.5% across all income brackets. The City of Phoenix does not have its own income tax. Social Security benefits are exempt from Arizona income tax, but most other retirement income, including pensions and withdrawals from 401(k)s and IRAs, is taxed at the same 2.5% flat rate.

The state sales tax is 5.6%, contributing to Phoenix’s minimum combined sales tax of 8.6%. Also, Arizona’s corporate income tax is 4.9%, applicable to Phoenix businesses.

In Phoenix, individuals must file an Arizona state income tax return if their gross income exceeds specific thresholds based on their filing status for the 2024 tax year (filed in 2025):

• $14,600 for single and married filing separately,
• $29,200 for married filing jointly, and,
• $21,900 for head of household.

It’s important to note that effective July 1, 2025, Phoenix will see a 0.5% increase in its city sales tax rate, which will raise the new minimum combined sales tax rate to 9.1%.

The state of Arizona and the city of Phoenix offers tax exemptions such as:

• Groceries: they are exempt from state and local taxes.
• 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

These exemptions help reduce overall tax burdens for Phoenix residents and businesses.

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

TaxLawyer.com helps Phoenix taxpayers find skilled Phoenix 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 Phoenix tax lawyer involves:

• Defining your tax issue (IRS disputes, wage garnishment, voluntary disclosure, etc.).
• Researching qualified Phoenix 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 Phoenix residents connect with top Phoenix tax attorneys who can effectively handle their tax concerns. Contact us today!