The Kiplinger Tax Map: Guide to State Income Taxes, State Sales Taxes, Gas Taxes, Sin Taxes
Tool | Updated October 2019

State-by-State Guide to Taxes

Compare state tax rates and rules — on income, ordinary purchases, gas, sin products, property, and more — across the U.S.


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The Bottom Line
Flag of Arizona

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 ounce
Cigars: $0.22 to $2.20 per ten cigars

Beer: $0.16 per gallon
Wine: $0.84 per gallon
Liquor: $3 per gallon

Taxes On Wireless Service


Inheritance and Estate Taxes


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