
Governor Doug Ducey announced that Arizona will implement its new 2.5% flat income tax rate on January 1, 2023, a full year ahead of schedule. According to Gov. Ducey, the accelerated implementation is the result of the state’s “continued economic growth and record surplus.”
The flat tax was adopted as part of the 2022 fiscal year budget, signed on June 30, 2022, and was originally scheduled to be phased in over three years, beginning January 1, 2024. However, a memo prepared by the Joint Legislative Budget Committee and the Governor’s Office of Strategic Planning and Budgeting determined that Arizona’s General Fund revenues exceed the statutory threshold required to immediately implement the flat tax.
State income tax rates in Arizona currently range from 2.59% to 4.5%. Come January 1st, 2023 the rate will be 2.5%. According to the Tax Foundation, Arizona will join 11 other states with a flat income tax and will have the lowest rate among these states.
Links to sources:
For more information about Arizona’s new 2.5% flat income tax, please contact Pat Derdenger or Karen Lowell.
Tags: Tax- Of Counsel
Karen Lowell is of counsel in Lewis Roca’s Business Transactions and Tax practice groups, advising clients on a variety of business and tax planning matters.
With a proven background in resolving business tax disputes, Karen guides clients on sales, use, and property tax matters ...
- Partner
Pat is the go-to lawyer for state and local tax issues. With his unmatched knowledge and strong communication skills, he ensures his clients get the best outcome for their bottom line.
Clients rely on Pat Derdenger for his deep knowledge of state and local tax issues that vitally impact ...
About This Blog
Lewis Roca is immersed in your industry and invested in your success. We share insights and trends that can affect your business.
Search
Topics
Archives
- September 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- December 2022
- November 2022
- October 2022
- September 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- February 2021
- January 2021
- December 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- November 2018
- April 2018
- February 2018
- January 2018
- December 2017
- November 2017
- September 2017
- August 2017
- June 2017
- May 2017
- April 2017
- March 2017
- November 2016
- October 2016
- September 2016
- August 2016
- April 2016
- January 2016
Authors
- Alfredo T. Alonso
- Amy E. Altshuler
- Oliver S. Bajracharya
- Edwin A. Barkel
- Trevor G. Bartel
- Nick Bauman
- G. Warren Bleeker
- Brooks Brennan
- Ogonna M. Brown
- Chad S. Caby
- John Carson
- Rob Charles
- Joshua T. Chu
- Brent R. Cohen
- Howard E. Cole
- Lance T. Collins
- Ross L. Crown
- Thomas J. Daly
- Pat Derdenger
- Katie M. Derrig
- Thomas J. Dougherty
- Susan M. Freeman
- Jessica L. Fuller
- Salma G. Granich
- John C. Gray, CIPP/US
- Art Hasan
- Frances J. Haynes
- Dietrich C. Hoefner
- Jennifer K. Hostetler
- David A. Jackson
- Andrew Jacobsohn
- Aaron D. Johnson
- Kyle W. Kellar
- Kris J. Kostolansky
- Gregory S. Lampert
- Shaun P. Lee
- Glenn J. Light
- Laura A. Lo Bianco
- Karen Jurichko Lowell
- James M. Lyons
- H. William Mahaffey
- Constantine Marantidis
- Patrick Emerson McCormick, CIPP/US
- Michael J. McCue
- Lindsay L. McKae
- Linda M. Mitchell
- Gary J. Nelson
- William D. Nelson
- Rachel A. Nicholas
- Laura Pasqualone
- David A. Plumley
- Kurt S. Prange
- Robert F. Roos
- Karl F. Rutledge
- Daniel A. Salgado
- Mary Ellen Simonson
- Susan Strebel Sperber
- Jan A. Steinhour
- Ryan M. Swank
- Dustin R. Szakalski
- Chris A. Underwood
- Jennifer A. Van Kirk
- Hilary D. Wells
- Drew Wilson
- Karen L. Witt
- Meng Zhong
Recent Posts
- Welcome our 2023 Michael D. Nosler Scholarship Intern
- SaaS is Taxable in Arizona Despite No Statutory Authority to Tax Digital Services
- The IP of Everything Podcast - Episode 19 - The IP of The
- The IP of Everything Podcast - Episode 18 - The IP of AI
- Escrow Agent Found 100% Liable for Wire Transfer to Cybercriminal/Imposter
- GAO Sustains Protest Where Awardee's Proposal Allegedly Misrepresented Availability of Key Person
- NCUA Approves 72-Hour Breach Notification Rule
- Welcome our 2023 Diversity Legal Writing Interns
- Review of 2022 Arizona Tax Highlights
- California AG Announces CCPA Investigative Sweep