A tax cut for Arizonans is coming sooner than expected. The state will adopt a 2.5% flat-rate income tax system starting with the 2023 tax year — one year earlier than planned — with Gov. Doug ...

Arizona lawmakers approved, and Gov. Doug Ducey signed, legislation to compress the state’s personal income tax rates from what was a maximum 4.5% that applied in 2021 to two rates in 2022 (2.55 ...

PHOENIX – Arizona’s flat income tax rate of 2.5% will kick in for the 2023 tax year thanks to a healthy economy, the state announced Thursday.

Arizona previously had income tax rates for single people making more than $159,000 a year that ranged from 2.59% to as high as 4.5%. Under the new flat tax rate plan, taxpayers pay 2.5%.

States are kicking off 2023 with a bevy of tax changes for their residents and businesses. Some 38 states had noteworthy alterations – mostly net tax reductions – take effect on January 1.

Last year, Arizona lawmakers passed legislation cutting the state’s income tax rate to a flat rate of 2.5% from 2.98%. The new Arizona flat personal income tax rate wasn’t expected until 2024.

By March 2023, more than 35 states, territories and the District of Columbia had legalized sports betting. But the revenue stream that followed has varied by state and tax rate.

Between April 1, 2020, and June 30, 2023, high-tax states lost net 2.8 million residents to low-tax states. That’s more people than could be seated in all 30 NFL stadiums and 29 NBA arenas combined.