Arizona Tax News

No major changes for 2023

The Arizona legislature made no major changes to the state tax law for 2023, after the switch to a flat tax for 2022.

The state income tax is now a flat tax of 2.5% for nearly everyone

For taxpayers who do not itemize deductions, Arizona allows an increase to the standard deduction for charitable contributions. For 2023, the charitable deduction amount was increased from 27% to 31% of the qualified charitable contributions made during the tax year.

Arizona follows the federal standard deduction, so Arizona standard deductions increased for 2023 according to the federal cost of living adjustment:

  • $13,850 for a single taxpayer or a married taxpayer filing a separate return
  • $27,700 for a married couple filing a joint return
  • $20,800 for individuals filing as head of household

    • The two-part Arizona tax credit for donations to private school tuition organizations also received an inflation adjustment. Up to $1,307 may be claimed by single and head of household taxpayers ($2,609 for married filing jointly) for the combined credit.