Arizona Business Tax Calculator

Calculate corporate income tax, franchise tax, and gross receipts tax for businesses operating in Arizona.

Why calculating business in Arizona is different

Arizona has a flat income tax system and moderate sales tax rates depending on city and county jurisdictions.

State Income Tax
2.5%
Base Sales Tax
5.6%
State Min Wage
$14.35 / hr
Abbreviation
AZ

Arizona Business Interactive Tool

This calculator uses the latest 2026 data for Arizona, including the minimum wage of $14.35 and the specific state income tax rates (2.5%).

Frequently Asked Questions about Arizona Business

What is the corporate tax rate in Arizona?

Corporate tax structures vary. In addition to potential corporate income taxes, businesses in Arizona must also consider unemployment insurance taxes, sales tax collection (5.6%), and local business licenses.

Do LLCs pay tax in Arizona?

LLCs are typically pass-through entities, meaning profits pass through to the owners' personal tax returns and are taxed at the personal 2.5% rate. However, Arizona may also impose an annual LLC franchise fee.