Arizona State Income Tax: Rates and Who Pays in 2021

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Arizona state revenue tax charges are 2.59%, 3.34%, 4.17% and 4.50%. Arizona state revenue tax brackets and revenue tax charges rely upon taxable revenue, tax-filing standing and residency standing.

Usually, you need to file an Arizona state revenue tax return if you happen to’re a resident, part-year resident or nonresident and you’ve got gross revenue above these quantities:

Arizona gross revenue equals your federal gross revenue minus curiosity from authorities bonds, Social Safety retirement advantages, Railroad Retirement Act advantages, energetic responsibility army pay and pay for service within the Nationwide Guard.

There are three forms of residency statuses relating to Arizona state revenue tax. They decide what portion of your revenue the state will tax.

» Discover a native tax preparer in Arizona without cost:

Basically, you’re a resident of Arizona for tax functions in case your major, everlasting house is there otherwise you spent greater than 9 months there in the course of the tax yr. Arizona residents file Type 140, 140A or 140EZ.

for the way Arizona determines residency standing.

Usually, you’re a part-year resident of Arizona if you happen to had been a nonresident for a few of the tax yr. That is usually the case for individuals who moved to Arizona from one other state.

In the event you’re a part-year resident, you usually pay Arizona state tax on all revenue you obtained in the course of the a part of the tax yr you had been a resident of Arizona, plus state revenue tax on revenue simply from Arizona sources when you had been a nonresident. Half-year residents file Type 140-PY.

» Have to file in a number of states?

Nonresidents nonetheless could must pay Arizona state tax on revenue they obtain from Arizona sources. This implies it’s possible you’ll have to file an Arizona state revenue tax return even if you happen to stay in one other state however made cash from Arizona-related issues comparable to:

We have weighed the professionals and cons of some main gamers within the house.

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