ARS § 43-1011; Version 2

43-1011; Version 1 - Taxes and tax rates 43-1011. Taxes and tax rates (L21, Ch. 412, sec. 15.) A. There shall be levied, collected and paid for each taxable year on the entire taxable income of every resident of this state and on the entire taxable income of every nonresident that is derived from sources within this state taxes determined in the following manner: 1. For taxable years beginning from and after December 31, 1996 through December 31, 1997: (a) In the case of a single person or a married person filing separately: If taxable income is:     The tax is: $0 — $10,000    2.90% of taxable income $10,001 — $25,000     $290, plus 3.30% of the excess over $10,000 $25,001 — $50,000     $785, plus 3.90% of the excess over $25,000 $50,001 — $150,000    $1,760, plus 4.80% of the excess over $50,000 $150,001 and over $6,560, plus 5.17% of the excess over $150,000 (b) In the case of a married couple filing a joint return or a single person who is a head of a household: If taxable income is:     The tax is: $0 — $20,000     2.90% of taxable income $20,001 — $50,000     $580, plus 3.30% of the excess over $20,000 $50,001 — $100,000    $1,570, plus 3.90% of the excess over $50,000 $100,001 — $300,000   $3,520, plus 4.80% of the excess over $100,000 $300,001 and over $13,120, plus 5.17% of the excess over $300,000 2. For taxable years beginning from and after December 31, 1997 through December 31, 1998: (a) In the case of a single person or a married person filing separately: If taxable income is:     The tax is: $0 — $10,000    2.88% of taxable income $10,001 — $25,000     $288, plus 3.24% of the excess over $10,000 $25,001 — $50,000     $774, plus 3.82% of the excess over $25,000 $50,001 — $150,000    $1,729, plus 4.74% of the excess over $50,000 $150,001 and over $6,469, plus 5.10% of the excess over $150,000 (b) In the case of a married couple filing a joint return or a single person who is a head of a household: If taxable income is:     The tax is: $0 — $20,000    2.88% of taxable income $20,001 — $50,000     $576, plus 3.24% of the excess over $20,000 $50,001 — $100,000    $1,548, plus 3.82% of the excess over $50,000 $100,001 — $300,000   $3,458, plus 4.74% of the excess over $100,000 $300,001 and over $12,938, plus 5.10% of the excess over $300,000 3. For taxable years beginning from and after December 31, 1998 through December 31, 2005: (a) In the case of a single person or a married person filing separately: If taxable income is:     The tax is: $0 — $10,000    2.87% of taxable income $10,001 — $25,000     $287, plus 3.20% of the excess over $10,000 $25,001 — $50,000     $767, plus 3.74% of the excess over $25,000 $50,001 — $150,000    $1,702, plus 4.72% of the excess over $50,000 $150,001 and over $6,422, plus 5.04% of the excess over $150,000 (b) In the case of a married couple filing a joint return or a single person who is a head of a household: If taxable income is:     The tax is: $0 — $20,000    2.87% of taxable income $20,001 — $50,000     $574, plus 3.20% of the excess over $20,000 $50,001 — $100,000    $1,534, plus 3.74% of the excess over $50,000 $100,001 — $300,000   $3,404, plus 4.72% of the excess over $100,000 $300,001 and over $12,844, plus 5.04% of the excess over $300,000 4. For taxable years beginning from and after December 31, 2005 through December 31, 2006: (a) In the case of a single person or a married person filing separately: If taxable income is:     The tax is: $0 — $10,000    2.73% of taxable income $10,001 — $25,000     $273, plus 3.04% of the excess over $10,000 $25,001 — $50,000     $729, plus 3.55% of the excess over $25,000 $50,001 — $150,000    $1,617, plus 4.48% of the excess over $50,000 $150,001 and over $6,097, plus 4.79% of the excess over $150,000 (b) In the case of a married couple filing a joint return or a single person who is a head of a household: If taxable income is:     The tax is : $0 — $20,000    2.73% of taxable income $20,001 — $50,000     $546, plus 3.04% of the excess over $20,000 $50,001 — $100,000    $1,458, plus 3.55% of the excess over $50,000 $100,001 — $300,000   $3,233, plus 4.48% of the excess over $100,000 $300,001 and over $12,193, plus 4.79% of the excess over $300,000 5. Subject to subsections B and C of this section, for taxable years beginning from and after December 31, 2006 through December 31, 2018: (a) In the case of a single person or a married person filing separately: If taxable income is:     The tax is : $0 — $10,000    2.59% of taxable income $10,001 — $25,000     $259, plus 2.88% of the excess over $10,000 $25,001 — $50,000     $691, plus 3.36% of the excess over $25,000 $50,001 — $150,000    $1,531, plus 4.24% of the excess over $50,000 $150,001 and over $5,771, plus 4.54% of the excess over $150,000 (b) In the case of a married couple filing a joint return or a single person who is a head of a household: If taxable income is:                 The tax is: $0 — $20,000                      2.59% of taxable income $20,001 — $50,000     $518, plus 2.88% of the excess over $20,000 $50,001 — $100,000    $1,382, plus 3.36% of the excess over $50,000 $100,001 — $300,000   $3,062, plus 4.24% of the excess over $100,000 $300,001 and over $11,542, plus 4.54% of the excess over $300,000 6. Subject to subsections D and E of this section, for taxable years beginning from and after December 31, 2018 through December 31, 2021: (a) In the case of a single person or a married person filing separately: If taxable income is:                 The tax is: $0 — $26,500                      2.59% of taxable income $26,501 — $53,000                       $686, plus 3.34% of the amount                                    over $26,500 $53,001 — $159,000                $1,571, plus 4.17% of the                                    amount over $53,000 $159,001 and over                  $5,991, plus 4.50% of the amount                                    over $159,000 (b) In the case of a married couple filing a joint return or a single person who is a head of a household: If taxable income is:                 The tax is: $0 — $53,000                      2.59% of taxable income $53,001 — $106,000                $1,373, plus 3.34% of the amount                                      over $53,000 $106,001 — $318,000               $3,143, plus 4.17% of the amount                                    over $106,000 $318,001 and over $11,983, plus 4.50% of the amount over $318,000 7. Subject to subsections E and F of this section, for taxable years beginning from and after December 31, 2021 through December 31 of the year in which notice is provided to the department pursuant to section 43-243, subsection A or subsection B, paragraph 1: (a) In the case of a single person or a married person filing separately: If taxable income is:                 The tax is: $0 — $27,272                      2.55% of taxable income $27,273 and over                   $695, plus 2.98% of the amount                                    over $27,272 (b) In the case of a married couple filing a joint return or a single person who is a head of a household: If taxable income is:                 The tax is: $0 — $54,544                      2.55% of taxable income $54,545 and over $1,391, plus 2.98% of the amount over $54,544 8. Subject to subsections E and F of this section, for taxable years beginning from and after December 31 of the year in which notice is provided to the department pursuant to section 43-243, subsection A or subsection B, paragraph 1 through December 31 of the year in which notice is provided to the department pursuant to section 43-243, subsection B, paragraph 2: (a) In the case of a single person or a married person filing separately: If taxable income is:                 The tax is: $0 — $27,272                      2.53% of taxable income $27,273 and over                   $690, plus 2.75% of the amount                                    over $27,272 (b) In the case of a married couple filing a joint return or a single person who is a head of a household: If taxable income is:                 The tax is: $0 — $54,544                      2.53% of taxable income $54,545 and over $1,380, plus 2.75% of the amount over $54,544 9. Subject to subsection F of this section, for taxable years beginning from and after December 31 of the year in which notice is provided to the department pursuant to section 43-243, subsection B, paragraph 2, the tax is 2.5% of taxable income. B. For the taxable year beginning from and after December 31, 2014 through December 31, 2015, the department shall adjust the income dollar amounts for each rate bracket prescribed by subsection A, paragraph 5 of this section according to the average annual change in the metropolitan Phoenix consumer price index published by the United States department of labor, bureau of labor statistics. The revised dollar amounts shall be raised to the nearest whole dollar. The income dollar amounts for each rate bracket may not be revised below the amounts prescribed in the prior taxable year. C. For each taxable year beginning from and after December 31, 2015 through December 31, 2018, the department shall adjust the income dollar amounts for each rate bracket prescribed by subsection A, paragraph 5 of this section according to the average annual change in the metropolitan Phoenix consumer price index published by the United States department of labor, bureau of labor statistics. The revised dollar amounts shall be raised to the nearest whole dollar. The income dollar amounts for each rate bracket may not be revised below the amounts prescribed in the prior taxable year. D. For each taxable year beginning from and after December 31, 2019 through December 31, 2021, the department shall adjust the income dollar amount for each rate bracket prescribed by subsection A, paragraph 6 of this section according to the average annual change in the metropolitan Phoenix consumer price index published by the United States department of labor, bureau of labor statistics. The revised dollar amounts shall be raised to the nearest whole dollar. The income dollar amounts for each rate bracket may not be revised below the amounts prescribed in the prior taxable year. E. For each taxable year beginning from and after December 31, 2021, the department shall adjust the income dollar amount for each rate bracket prescribed by subsection A, paragraphs 7 and 8 of this section, as applicable, according to the average annual change in the metropolitan Phoenix consumer price index published by the United States department of labor, bureau of labor statistics. The revised dollar amounts shall be raised to the nearest whole dollar. The income dollar amounts for each rate bracket may not be revised below the amounts prescribed in the prior taxable year.