Arizona — one of the lowest state income taxes in the US
Arizona has a flat state income tax rate of just 2.5% on all taxable income — one of the lowest flat rates in the entire United States. Proposition 208 (2020) attempted to add a 3.5% surcharge on high earners, but it was struck down by the Arizona Supreme Court in 2021.
A worker earning $75,000/year in Arizona pays approximately $1,529 in state income tax annually. Take-home is approximately $58,900 per year — significantly more than most states with income tax. This low rate is a major reason for Arizona's population growth.