Compare state tax rates and rules — on income, ordinary purchases, gas, sin products, property, and more — across the U.S. Go to the Kiplinger Tax Map Arizona Add to State Compare List | View List View State Compare List (0) selected | Compare up to 5 The Bottom Line Most Tax-Friendly While the Grand Canyon State does have an income tax, the rates are notably low: If you’re a joint filer, you won’t hit the top bracket until your income is over $318,000, helping earn Arizona a place among Kiplinger’s top ten most tax-friendly states. The tax on gasoline is the also one of the country’s lowest. Sales taxes lean high, though, and some cities tax groceries. Sales Tax 5.6% state levy. Localities can add as much as 5.6% to that, but the average combined levy is 8.39%, according to the Tax Foundation. Many cities in Arizona levy a tax on food for home consumption, like Tempe (1.8%) and Scottsdale (1.65%); Phoenix and Mesa are notable exceptions. Income Tax Range Low: 2.59% (on up to $21,202 of taxable income for married joint filers and up to $10,602 for all others)High: 4.54% (on more than $317,990 of taxable income for married joint filers and more than $158,996 for all others)Effective tax rate: 2.77% for single filers, 3.24% for joint filers Motor Fuel Taxes Gasoline: $0.1900 per gallon. Diesel: $0.2700 per gallon. Property Taxes In Arizona, residents pay an average of $754 in taxes per $100,000 of assessed home value. Vehicle Taxes Sales tax is due; rate depends on home address of buyer. Arizona levies an annual tax based on a car’s sticker price and age. The assessment is set at 60% of the MSRP price, reduced by 16.25% for each year since the vehicle was first registered in Arizona. The rate is $2.89 (new vehicles) /$2.80 (used vehicles) for each $100 of assessed value. For example, for a new vehicle that costs $25,000, the first year assessed value would be $15,000 and the VLT would be $420. Sin Taxes Cigarettes: $2 per pack.Snuff, chewing and smoking tobacco: $0.05-$0.22 per ounceCigars: $0.22 to $2.20 per ten cigarsBeer: $0.16 per gallonWine: $0.84 per gallonLiquor: $3 per gallon Taxes On Wireless Service 12.57% Inheritance and Estate Taxes None. About our methodology