Arizona
Our ranking: Most tax-friendly
State income tax: 2.59% (on taxable income of less than $10,346 for single filers or $20,690 for joint filers) — 4.54% (on taxable income of more than $155,159/single or $310,317/joint) Income levels are for the 2017 tax year.
Average state and local sales taxes: 8.33%
Gas taxes and fees: 19 cents per gallon
Arizona’s top income tax rate of 4.54% doesn’t kick in until taxable income exceeds $155,159 for single filers or $310,317 for married couples filing jointly.
The property tax on the state’s median home value of $176,900 is $1,367, below average for the U.S. And at 19 cents per gallon, state gas taxes are well below the national average of 34 cents per gallon.
Like most states, the Grand Canyon State excludes prescription drugs and food for home consumption from state sales taxes. However, all 15 counties levy additional taxes, as do many municipalities, and some jurisdictions extend their taxes to groceries.
