1Arizona
Lowest19.8%
Overall effective tax rate
- Net
- Federal
- State
- FICA
- Federal income tax
- $7,670
- State income tax
- $1,473
- Payroll tax (FICA)
- $5,738
- Total tax
- $14,880
- Net income (annual)
- $60,120
Tax year 2026 · state vs state
Alabama vs Arizona Income Tax Comparison (2026)
On a $75,000 salary (single filer, 2026), you pay $2,013 less state income tax a year in Arizona than in Alabama, which is about $168 a month. At $150,000 the gap is $3,888 in favor of Arizona.
Alabama: up to 5%Arizona: 2.5% flatUpdated October 10, 2026
Compare Alabama and Arizona for your income
Estimate for education only, not tax advice. 2026 federal and state rules, standard deductions, no local taxes. How we calculate.
State comparison
Comparing 2 states, sorted by lowest overall tax rate.
2Alabama
22.5%
Overall effective tax rate
- Net
- Federal
- State
- FICA
- Federal income tax
- $7,670
- State income tax
- $3,485
- Payroll tax (FICA)
- $5,738
- Total tax
- $16,893
- Net income (annual)
- $58,108
Advanced analysis (optional)
Choose which extra insights you would like to see.
💰 Monthly breakdown
Your take-home pay, spread across the year
Arizona
Monthly gross$6,250
Monthly tax$1,240
Monthly take-home$5,010
Alabama
Monthly gross$6,250
Monthly tax$1,408
Monthly take-home$4,842
Estimates use 2026 federal and state rates, the standard deduction for your filing status and no local taxes. Rankings use state income tax only.
Alabama vs Arizona: how the two systems differ
| Alabama | Arizona | |
|---|---|---|
| Wage income tax | Progressive, 3 brackets | Flat 2.5% |
| Top rate | 5% | 2.5% |
| Lowest rate | 2% | 2.5% |
| Deductions and credits (single) | $3,000 standard deduction, $1,500 personal exemption | $16,100 standard deduction |
State income tax and take-home pay at every salary
The same salary can leave you with different take-home pay depending on the state. This table applies each state’s 2026 rules to a single filer with no pre-tax contributions.
| Income | AL state tax | AZ state tax | Difference | AL take-home | AZ take-home |
|---|---|---|---|---|---|
| $30,000 | $1,235 | $348 | $888 less in Arizona | $25,050 | $25,938 |
| $40,000 | $1,735 | $598 | $1,138 less in Arizona | $32,585 | $33,723 |
| $50,000 | $2,235 | $848 | $1,388 less in Arizona | $40,120 | $41,508 |
| $60,000 | $2,735 | $1,098 | $1,638 less in Arizona | $47,655 | $49,293 |
| $75,000 | $3,485 | $1,473 | $2,013 less in Arizona | $58,108 | $60,120 |
| $100,000 | $4,735 | $2,098 | $2,638 less in Arizona | $74,445 | $77,083 |
| $150,000 | $7,235 | $3,348 | $3,888 less in Arizona | $106,556 | $110,444 |
| $250,000 | $12,235 | $5,848 | $6,388 less in Arizona | $170,947 | $177,335 |
Single filer, 2026, federal standard deduction. Take-home is after federal, state and payroll tax. No local taxes.
Married filing jointly
| Income | AL state tax | AZ state tax | Difference | AL take-home | AZ take-home |
|---|---|---|---|---|---|
| $75,000 | $3,095 | $1,070 | $2,025 less in Arizona | $61,528 | $63,553 |
| $100,000 | $4,345 | $1,695 | $2,650 less in Arizona | $80,365 | $83,015 |
| $150,000 | $6,845 | $2,945 | $3,900 less in Arizona | $116,340 | $120,240 |
| $250,000 | $11,845 | $5,445 | $6,400 less in Arizona | $185,623 | $192,023 |
Married filing jointly, 2026, federal standard deduction. Uses each state's joint brackets where they differ.
Does the lower-tax state change as income rises?
Across every income from $10,000 to $1,000,000 that we tested, Arizona charges the same or less state income tax than Alabama for a single filer, so there is no income level where the ranking flips.
Rates side by side
Alabama (single filers)
| 2% | Up to $500 |
| 4% | $501 to $3,000 |
| 5% | Over $3,000 |
Arizona (single filers)
| 2.5% | Over $0 |
- Alabama: Many Alabama cities and counties also levy occupational taxes that are not included here.
Full details for each state: Alabama income tax calculator and Arizona income tax calculator. Federal rates are on the 2026 federal tax brackets page.
Alabama vs Arizona FAQ
Which has lower income tax, Alabama or Arizona?+
Arizona is lower at $75,000: $1,473 of state income tax versus $3,485 in Alabama. At $150,000 it is $7,235 in Alabama and $3,348 in Arizona. Across every income from $10,000 to $1,000,000 that we tested, Arizona charges the same or less state income tax than Alabama for a single filer, so there is no income level where the ranking flips.
How much more do I keep on $100,000 in Alabama versus Arizona?+
A single filer keeping $74,445 a year in Alabama would keep $77,083 in Arizona after federal, state and payroll tax. The difference is $2,638 a year, or $220 a month.
How do the Alabama and Arizona income tax systems differ?+
Alabama uses progressive rates up to 5%; Arizona uses a flat 2.5% rate. State deductions and exemptions also differ, which changes how much income is taxed.
Are local taxes included in this Alabama vs Arizona comparison?+
No. It covers federal income tax, Social Security, Medicare and state income tax only. City, county, sales and property taxes are not included, and they can change the real cost of living in each state.
Should I move from Alabama to Arizona to save on taxes?+
State income tax is one cost among many. Property and sales taxes, housing, insurance and wages also differ, and you may owe tax to both states in the year you move. Use this comparison as one input and confirm details with a tax professional.
Sources
- Tax Foundation: 2026 state individual income tax rates and brackets
- IRS: Tax inflation adjustments for tax year 2026
Last checked October 10, 2026. Confirm with your state tax agency before filing.
More state comparisons
- Alabama vs Texas
- Alabama vs California
- Alabama vs Florida
- Alabama vs New York
- Arizona vs Texas
- Arizona vs California
- Arizona vs Florida
- Arizona vs New York
- All state comparisons →
Estimates for education only, not tax, legal or financial advice. Not a substitute for a tax professional or your state revenue department.