Alabama vs Arizona Taxes: Take-Home Pay Compared (2026)
On a $75,000 salary, a single filer keeps $1,511 more a year in Arizona than in Alabama ($126 a month).
Alabama
2% - 5% state income tax
$58,415
take-home on $75,000 · $4,868/month
36th of 51 states for take-home pay
Alabama paycheck calculator ›Arizona
2.5% flat state income tax
$59,926
take-home on $75,000 · $4,994/month
12th of 51 states for take-home pay
Arizona paycheck calculator ›Take-home pay in Alabama and Arizona by salary
| Salary | Alabama | Arizona | Difference |
|---|---|---|---|
| $40,000 | $32,641 | $33,529 | $888 more in Arizona |
| $50,000 | $40,236 | $41,314 | $1,078 more in Arizona |
| $60,000 | $47,831 | $49,099 | $1,268 more in Arizona |
| $75,000 | $58,415 | $59,926 | $1,511 more in Arizona |
| $100,000 | $75,028 | $76,889 | $1,861 more in Arizona |
| $125,000 | $91,580 | $93,788 | $2,207 more in Arizona |
| $150,000 | $107,718 | $110,250 | $2,532 more in Arizona |
| $200,000 | $140,954 | $144,136 | $3,182 more in Arizona |
Single filer, standard deduction, no local tax. To match $75,000 in Alabama you would need about $72,750 in Arizona; to match $75,000 in Arizona you would need about $77,250 in Alabama.
How Alabama and Arizona tax wages
| 2026 | Alabama | Arizona |
|---|---|---|
| Income tax | 3 brackets from 2% to 5% | a flat 2.5% income tax |
| Top rate | 5% | 2.5% |
| Standard deduction | $3,000 single | $8,350 single |
| State tax on $75k | $3,177 (4.2%) | $1,666 (2.2%) |
| Local wage taxes | Yes (5 modeled) | No |
| Reciprocity | None | None |
Alabama vs Arizona: FAQ
Does Alabama or Arizona have lower income taxes in 2026?
On a $75,000 salary, a single filer keeps $1,511 more a year in Arizona than in Alabama ($126 a month). Alabama has 3 brackets from 2% to 5% for 2026. For single filers the top 5% rate starts at $3,000 of taxable income. Arizona has a flat 2.5% income tax for 2026.
What salary in Arizona equals $75,000 in Alabama?
To take home the same $58,415 that $75,000 leaves in Alabama, you would need about $72,750 in Arizona, based on income, payroll, and state taxes only. Housing and other living costs are not included.
How much more do high earners keep in Arizona than in Alabama?
At $150,000 the gap is $2,532 a year: $107,718 in Alabama versus $110,250 in Arizona. Progressive brackets make the difference grow faster as income rises.
What if I live in Alabama and work in Arizona?
Alabama and Arizona do not have a reciprocity agreement, so Arizona withholds tax on wages earned there and Alabama generally gives residents a credit for tax paid to the other state. You effectively pay the higher of the two rates.
Do local taxes change the Alabama vs Arizona comparison?
Alabama has local wage taxes in places like Birmingham (1%), Auburn (1%), Gadsden (2%). Those are on top of the statewide figures above, so check the city calculators if you live or work in one of them.