What it costs to live and work in Arizona: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for your monthly budget.
| Arizona | Source | |
|---|---|---|
| Minimum wage | $15.15 an hour | US Department of Labor, Wage and Hour Division: State Minimum Wage Laws |
| State income tax | 2.5 % flat | Tax Foundation: State Individual Income Tax Rates and Brackets, 2026 (rates as of January 1, 2026) |
| State sales tax | 5.6 % | Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 |
| Median gross rent | $1,672 a month (2024) | US Census Bureau, American Community Survey 2024 1-year estimates, table B25064 (Median Gross Rent) |
The minimum wage is $15.15 an hour in 2026.
Arizona has a flat income tax of 2.5 %.
The state rate is 5.6 %; local taxes add 2.94 % on average, for a combined 8.54 %.
What income does rent in Arizona take?
A common rule of thumb is to keep rent at or below 30 % of gross income. At the median rent of $1,672 a month, that means a household income of about $66,900 a year before tax.
Good to know
- Arizona's minimum wage is adjusted every year by a set formula.
Sources
- US Department of Labor, Wage and Hour Division: State Minimum Wage Laws (2026-07-01)
- Tax Foundation: State Individual Income Tax Rates and Brackets, 2026 (rates as of January 1, 2026) (2026-02-19)
- Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 (2026-07-06)
- US Census Bureau, American Community Survey 2024 1-year estimates, table B25064 (Median Gross Rent) (2025-09)