SalaryFact logosalaryfact.comData: BLS OEWS May 2025

Arizona Salary Percentile
Calculator

Arizona has a flat 2.5% income tax — one of the lowest flat rates in the US — and a fast-growing economy driven by semiconductor manufacturing, technology, and finance operations that have relocated from California.

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Enter your gross annual salary (pre-tax). Hourly workers: multiply hourly rate by 2,080.

Arizona salary percentiles — May 2025

PercentileArizonaNational
10th$31K$31K
25th$37K$38K
50th (median)median$50K$51K
75th$79K$81K
90th$126K$129K

State figures derived from BLS OEWS May 2025 state median. National figures from BLS national percentile data.

Key insight

Arizona's 2.5% flat income tax is among the lowest in states that have income tax. Phoenix is experiencing significant corporate relocation from California, pushing the state median of $50K upward.

Arizona salary — frequently asked questions

What is the median salary in Arizona?

The median annual salary in Arizona is approximately $50K based on May 2025 BLS data. Phoenix dominates the Arizona economy. Tucson's university economy and border economy are well below the Phoenix metro median, while Scottsdale runs above it.

Why are companies moving to Phoenix?

Phoenix offers lower costs, abundant land, and a business-friendly tax environment compared to California. TSMC is building two semiconductor fabs near Phoenix, Intel has a major campus, and dozens of finance, tech, and logistics firms have relocated. This corporate inflow is raising Phoenix wages faster than most US metros.

What is Arizona's income tax rate?

Arizona reduced its state income tax to a flat 2.5% in 2023. Previously Arizona had a graduated rate system. The flat 2.5% rate means high earners benefit most from Arizona's tax structure — someone earning $200,000 saves $10,000+ compared to California's top marginal rate.

What is a good salary in Phoenix?

In Phoenix, $65,000-$75,000 provides comfortable single living. Housing has become more expensive due to population inflow, but remains 30-40% below comparable California metros. The tech salary premium in Phoenix has grown as semiconductor and tech employers compete for workers.

What is the average salary in Arizona?

"Average" and "median" measure different things, but BLS reports the median: the midpoint where half of Arizona workers earn more and half earn less. The Arizona median is $50K, below the national median of $51K. Use the calculator above to see exactly where your salary ranks.

Salary percentiles by state