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Arizona Capital Gains Tax Calculator

Arizona taxes capital gains as ordinary income. Combined top rate: 26.3%.

Step 1: Your income before the capital gain

Your existing taxable income determines which federal capital gains bracket applies (0%, 15%, or 20%).

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Don't know your taxable income? Calculate it from gross income
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Standard deduction (single): $15,750

Or use the Arizona Income Tax Calculator for a detailed breakdown.

⚠️ This calculator provides estimates for educational purposes only. It is not financial, tax, or legal advice. Your actual results may vary.

Arizona Capital Gains Rules

  • 25% subtraction for long-term capital gains

    AZ allows a 25% subtraction of net long-term capital gains, reducing effective rate to 1.875%

Frequently Asked Questions

Does Arizona have a lower rate for long-term gains?
No. Unlike the federal government, Arizona does not offer a preferential rate for long-term capital gains. All gains are taxed at the flat 2.5% rate.
What is Arizona's capital gains tax rate?
Arizona taxes capital gains as ordinary income at a flat rate of 2.5%. This applies to both short-term and long-term gains at the state level.
What is the combined capital gains tax rate in Arizona?
The maximum combined rate is 26.3% (federal 20% + NIIT 3.8% + state 2.5%). Lower-income filers may qualify for the 0% or 15% federal rate.

For informational purposes only.