STATE TAX COMPARISON · TAX YEAR 2026
Arizona vs California taxes in 2026
Arizona taxes income at a flat 2.5%, while California taxes it at graduated rates from 1% to 12.3%, plus 1% over $1 million. Single filers keep more in Arizona at every income shown: $126 more at $50,000, rising to $13,013 at $250,000. For a married couple with two children, take-home pay is higher in California up to $100,000 and higher in Arizona from $150,000 up, by $8,295 at $250,000.
Your estimate
- You keep more in Arizona
- $1,192.62 a year
- Arizona income tax
- $1,472.50
- California income tax
- $2,665.12
- Take-home in Arizona
- $60,120.00
- Take-home in California
- $58,927.38
Take-home pay in Arizona and California
Take-home pay is wages minus state income tax, federal income tax, Social Security and Medicare. Property, sales and other taxes are not included.
| Arizona | California | |
|---|---|---|
| $50,000 in wages: $126 more take-home in Arizona | ||
| State income tax | $848 | $973 |
| Take-home pay | $41,508 | $41,382 |
| $75,000 in wages: $1,193 more take-home in Arizona | ||
| State income tax | $1,473 | $2,665 |
| Take-home pay | $60,120 | $58,927 |
| $100,000 in wages: $2,813 more take-home in Arizona | ||
| State income tax | $2,098 | $4,911 |
| Take-home pay | $77,083 | $74,269 |
| $150,000 in wages: $6,213 more take-home in Arizona | ||
| State income tax | $3,348 | $9,561 |
| Take-home pay | $110,444 | $104,230 |
| $250,000 in wages: $13,013 more take-home in Arizona | ||
| State income tax | $5,848 | $18,861 |
| Take-home pay | $177,335 | $164,321 |
| Arizona | California | |
|---|---|---|
| $50,000 in wages: $195 more take-home in California | ||
| State income tax | $195 | $0 |
| Take-home pay | $48,600 | $48,795 |
| $75,000 in wages: $820 more take-home in California | ||
| State income tax | $820 | $0 |
| Take-home pay | $68,203 | $69,023 |
| $100,000 in wages: $481 more take-home in California | ||
| State income tax | $1,445 | $964 |
| Take-home pay | $87,665 | $88,146 |
| $150,000 in wages: $1,653 more take-home in Arizona | ||
| State income tax | $2,695 | $4,348 |
| Take-home pay | $124,890 | $123,237 |
| $250,000 in wages: $8,295 more take-home in Arizona | ||
| State income tax | $5,195 | $13,490 |
| Take-home pay | $196,673 | $188,378 |
Rates and deductions
| Arizona | California | |
|---|---|---|
| Rates | 2.5% flat | 1% to 12.3%, plus 1% over $1 million |
| Standard deduction | $16,100 single, $32,200 joint | $5,900 single, $11,800 joint |
| Personal exemption | None | $158 single, $316 joint (credit), shrinking above $252,203 of income ($504,411 joint) |
Retirement and Social Security
Does Arizona tax Social Security?
No. Arizona does not tax Social Security benefits.
Arizona Social Security tax rules
Does Arizona tax retirement income?
Yes. Arizona taxes private pensions and 401(k) and IRA withdrawals, subtracts up to $2,500 of a federal or Arizona government pension, and exempts military retirement.
Arizona retirement income tax for 2026
Does California tax Social Security?
No. California does not tax Social Security benefits.
California Social Security tax rules
Does California tax retirement income?
Yes. California taxes pensions and 401(k) and IRA withdrawals at its regular rates, with no general retirement exclusion.