US Tax Tools

Best States to Move to From Arizona

Arizona uses 2.5% flat, so the value of a move depends on more than just the headline rate. Some states will still leave you with a meaningfully lower total tax bill than Arizona. Use the ranking tool below to compare all 50 states and see how much you could save based on your actual income and filing status.

State Tax Ranking
On $100,000 income, Alaska ranks #1 with the lowest total tax while Oregon has the highest. Your state (Arizona) ranks #12.
Alaska could save you $2,106/yearExplore moving to Alaska
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Most Tax Savings

Alaska

Save $2,106/yr

Your Tax Burden

$2,106

2.11% effective state rate

Federal + FICA

$21,099

Same across all states

At your income of $100,000, Arizona charges $2,106 in state income tax (2.11% effective rate).

Best option: Alaska saves you $2,106/year — With no state income tax, your take-home pay in Alaska is higher than most states. However, the cost of living — particularly housing, food, and energy — is significantly above the national average, which can offset the tax savings.

Highest tax: Oregon would cost you $4,981/year more than Arizona.

You save $421 vs 2024
All 50 States + DC Ranked
#StateState TaxEff. RateTotal TaxTake-HomeAnnual Savings
1Alaska$00.00%$21,099$78,901+$2,106
2Florida$00.00%$21,099$78,901+$2,106
3Nevada$00.00%$21,099$78,901+$2,106
4New Hampshire$00.00%$21,099$78,901+$2,106
5South Dakota$00.00%$21,099$78,901+$2,106
6Tennessee$00.00%$21,099$78,901+$2,106
7Texas$00.00%$21,099$78,901+$2,106
8Washington$00.00%$21,099$78,901+$2,106
9Wyoming$00.00%$21,099$78,901+$2,106
10North Dakota$7710.77%$21,870$78,130+$1,336
11Ohio$1,6011.60%$22,700$77,301+$506
12ArizonaYour state$2,1062.11%$23,205$76,795
13Indiana$2,5702.57%$23,669$76,331-$463
14Pennsylvania$2,5862.59%$23,685$76,315-$480
15Louisiana$2,9993.00%$24,098$75,902-$893
16Arkansas$3,2083.21%$24,307$75,693-$1,102
17New Jersey$3,2403.24%$24,339$75,661-$1,134
18Rhode Island$3,2673.27%$24,366$75,634-$1,161
19Kentucky$3,3703.37%$24,469$75,531-$1,264
20West Virginia$3,4253.43%$24,524$75,476-$1,319
21Mississippi$3,4903.49%$24,589$75,411-$1,384
22Michigan$3,5813.58%$24,680$75,320-$1,474
23Colorado$3,7073.71%$24,806$75,194-$1,601
24North Carolina$3,7913.79%$24,890$75,110-$1,685
25Oklahoma$3,8133.81%$24,912$75,088-$1,707
26New Mexico$3,8493.85%$24,948$75,052-$1,743
27Connecticut$3,8843.88%$24,983$75,017-$1,778
28Utah$3,9183.92%$25,017$74,983-$1,811
29Missouri$3,9323.93%$25,031$74,969-$1,826
30Maryland$3,9493.95%$25,048$74,952-$1,843
31Wisconsin$4,0794.08%$25,178$74,822-$1,972
32Vermont$4,0854.08%$25,184$74,816-$1,979
33Illinois$4,1704.17%$25,269$74,731-$2,064
34Alabama$4,1734.17%$25,272$74,729-$2,066
35Massachusetts$4,2134.21%$25,312$74,689-$2,106
36Nebraska$4,2524.25%$25,351$74,649-$2,146
37Kansas$4,3454.34%$25,444$74,556-$2,239
38California$4,3784.38%$25,477$74,523-$2,271
39Georgia$4,3944.39%$25,493$74,507-$2,288
40Iowa$4,5034.50%$25,602$74,398-$2,397
41Delaware$4,5444.54%$25,643$74,357-$2,438
42Virginia$4,5874.59%$25,686$74,314-$2,481
43South Carolina$4,6994.70%$25,798$74,202-$2,593
44Montana$4,7254.72%$25,824$74,176-$2,619
45New York$4,7294.73%$25,828$74,172-$2,623
46Idaho$4,8874.89%$25,986$74,015-$2,780
47Minnesota$5,2935.29%$26,392$73,608-$3,187
48Maine$5,5595.56%$26,658$73,342-$3,453
49District of Columbia$5,5615.56%$26,660$73,340-$3,455
50Hawaii$6,2046.20%$27,303$72,697-$4,098
51Oregon$7,0877.09%$28,186$71,814-$4,981

About Taxes in Arizona

This state uses a progressive income tax system with multiple brackets, similar to the federal system. Only the income within each bracket is taxed at that rate, so your effective state rate is lower than the top bracket. Tax planning strategies include maximizing pre-tax retirement contributions to reduce state-taxable income.

Tip: In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.

What to Consider When Moving

Tax residency rules: Most states tax you as a resident for the entire year if you live there for more than 183 days. Moving mid-year may require filing part-year returns in both states.

Remote work complication: Some states, notably New York, use "convenience of the employer" rules. If you move but keep an employer in a higher-tax state, part of your income may still be sourced there.

Total cost matters: A no-income-tax state saves you the full state tax amount, but higher property taxes (Texas), sales taxes (Tennessee, Washington), or cost of living can erode the savings. Compare total out-of-pocket, not just income tax.

Frequently asked questions

Which state has the lowest taxes if I move from Arizona?

States with no income tax — Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming — often offer the biggest income tax savings compared to Arizona. Use the ranking tool above with your actual income and filing status to see the exact best-fit destination for you.

How much would I save moving from Arizona to Texas or Florida?

Because Texas and Florida have no state income tax, your savings can equal most or all of your Arizona state income tax bill. The exact amount depends on your income, filing status, spending, and home value.

What is Arizona's income tax rate?

Arizona has 2.5% flat, with a top marginal rate of 2.5%. Your effective rate depends on income, filing status, deductions, and credits.

Do all states have income tax?

No. Nine states have no individual income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

Should I consider other taxes when comparing states?

Yes. Income tax is only one part of your total tax burden. Property taxes, sales taxes, housing costs, and local taxes can materially change whether a move actually saves money.

Does this calculator include federal taxes?

The ranking focuses on state-to-state tax differences. Federal income tax and FICA are broadly similar no matter where you live, so the ranking is most useful for isolating the state-level part of the move decision.

Sources

Related Calculators

Last updated April 27, 2026 Tax year 2025-26

Data sources: IRS (irs.gov), Social Security Administration

This tool is general information only, not financial advice.

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