Self-employment tax in Arizona
Arizona taxes self-employed income at a flat 2.5% at every income level, with no local income tax - on top of federal self-employment and income tax. The standard deduction shown here is the verified 2025 figure of $15,750 for single filers; the 2026 amount is unverified.
What a Arizona freelancer owes
- Federal self-employment tax of 15.3% (12.4% Social Security + 2.9% Medicare).
- Federal income tax on your net profit (after the deductible half of SE tax).
- Arizona income tax at a flat 2.5% for 2026, after the 2025 standard deduction of $15,750 for single filers (2026 amount unverified).
Estimate your Arizona taxes
Free 1099 self-employment tax calculator — add Arizona's 2.5% flat state rate. No sign-up.
Enter Arizona's 2.5% flat in the State Tax field for a full estimate.
States with no income tax are set to 0%. Estimate only — adjust for local taxes.
Estimates use 2026 US federal figures (IRS Rev. Proc. 2025-32): self-employment tax of 15.3% (12.4% Social Security up to the $184,500 wage base + 2.9% Medicare) plus federal income tax on your net profit after the standard deduction. State and local taxes are only included if you set a state rate above. Simplified estimate for planning only — not tax advice.
Guide: Self-employment tax in Arizona — flat 2.5%, no local tax
Arizona is one of the simplest states for freelancers: one flat rate, no local income tax. Arizona tax is a flat 2.5% at every income level and for every filing status — the old Optional, X, and Y tables are obsolete — and the 2026 estimated-tax booklet confirms the same 2.5% rate for 2026. The standard deduction shown on this page is the verified 2025 figure: $15,750 for single filers (or married filing separately), $31,500 joint, and $23,625 head of household. The 2026 standard deduction amount is unverified, so this page uses the 2025 figure and labels it as 2025.
The federal layer is the same in every state. Self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of your net profit, and it applies once your net earnings reach $400. The Social Security wage base is $184,500 for 2026; Medicare is uncapped. The deduction for half of your SE tax lowers your income tax only — it does not lower your net earnings or your SE tax.
Arizona also offers an elective: small business income can be reported on Form 140-SBI at the same 2.5% rate. If you elect SBI treatment, SBI estimates on Form 140ES-SBI are required if your SBI liability will exceed $1,000. There is no local income tax to add on top.
Worked example. Take a single freelancer with $60,000 of net profit. Federal SE tax is $60,000 x 92.35% = $55,410, x 15.3% = $8,477.73. Arizona tax, using the verified 2025 standard deduction, is ($60,000 - $15,750) x 2.5% = $44,250 x 2.5% = $1,106.25.
Arizona estimated payments use Form 140ES, with 2026 installments due April 15, June 15, and September 15, 2026, and January 15, 2027. Keep every receipt and invoice in MoneyFeed via WhatsApp, so your net profit is ready when each estimate comes due.
FAQ
A flat 2.5% at every income level and for every filing status, confirmed for 2026 by the 2026 estimated-tax booklet. The old Optional, X, and Y tables are obsolete. There is no local income tax.
The verified 2025 standard deduction is $15,750 for single filers (or married filing separately), $31,500 joint, and $23,625 head of household. The 2026 amount is unverified, so this page uses the 2025 figure and labels it as 2025.
Small business income can be reported on Form 140-SBI at the same 2.5% rate. If you elect SBI treatment, SBI estimates on Form 140ES-SBI are required if your SBI liability will exceed $1,000.
Form 140ES installments for 2026 are due April 15, June 15, and September 15, 2026, and January 15, 2027.
Use the calculator for the federal estimate, then enter 2.5 in the State Tax field for the Arizona layer — or work from the example above: subtract the $15,750 single standard deduction (2025 figure), then apply 2.5%.
Arizona freelancer tax — FAQ
Do freelancers pay state income tax in Arizona?
Yes, at a flat 2.5% on all income levels and filing statuses - the old Optional/X/Y tables are obsolete - on top of federal taxes. There is no local income tax.
What is the Arizona standard deduction?
The verified 2025 standard deduction is $15,750 for single filers (or married filing separately), $31,500 joint, and $23,625 head of household. The 2026 amount is unverified, so this page uses the 2025 figure and labels it as 2025.
How do I estimate my Arizona 1099 taxes?
Use the free MoneyFeed 1099 calculator for the federal estimate, then add Arizona tax at 2.5% on your Arizona taxable income.
Figures are 2026 headline guidance for freelancers and the self-employed, not tax advice. Check current IRS and state rules or a CPA for your situation.