State Tax in Arizona

Paying state tax in Arizona and other areas is part of life to most people.  Going to the store often means determining how much money you will spend on your goods and how much money you will spend paying taxes on the goods.  While the state of Arizona can initially seem to be a state that places a heavy tax burden on its residents, it offers residents exemptions that are not available in many other states.

Normal Arizona Taxes

There are many taxes that individuals in Arizona expect to pay and exemptions that they never expect to see.  The state tax in Arizona on sales ranges between 5.6 per cent and 10 per cent depending solely on the county or city that is deciding the tax rate.  The most a person in Arizona can ever expect to pay because of sales tax is 10.7 per cent which is extremely high to some visitors who live in areas where sales tax is low or nonexistent. 

The gasoline tax is low compared to some areas at 19 cents per gallon for gas and 28 cents per gallon for diesel.  Making up for this lower fuel tax is the $2.00 tax on a pack of cigarettes and a tax on water usage.  The dry, hot, weather in Arizona has prompted the establishment of a state tax that is 65 cents for every 1,000 gallon used.  The idea of taxing water is shocking to many and the refusal to allow federal income tax deductions on state taxes is another.  However, these shocks are often softened by the fact that Arizona does offer some tax exemptions.

 

 

Normal Tax Exemptions

The state tax laws in Arizona do not include either food or prescription drugs.  This means that when shopping for groceries in Arizona a person does not have to worry about there budget hoping that they do not go over the amount they intend to spend because of taxes.  It also means that individuals living on a fixed income do not need to worry about being charged 10 per cent in taxes on their already expensive medication. 

There is also no state tax in Arizona on property which comes as a blessing to many home owners.  There are some taxes that are assessed by county assessors but they can gain exemption with age or by residing in certain counties. 

Inheritance Taxes in Arizona

In addition to offering exemptions the state of Arizona often works hard to go over and amend past tax laws.  Residents in Arizona no longer have to worry about paying inheritance or gift taxes on estates left to them and the estate tax will not be charged against an heir's estate if the deceased passed away after January 1st, 2006.

If you have questions or concerns regarding your Arizona taxes, contact a local lawyer who can help.

Comments

I'm the Executor and live in Tennessee: Grandson lives in Arizonia: Grandfather died in Tennessee (2/5/2009). All grandchildren (5) will receive a total of 10% of the estate (2% each) which will equal around ($4000 to each grandchild). Article above says Arizonia doesn't have an inheritance tax therefore no forms are required. Total Estate less than ($250k)so no Federal or Tennessee estate taxes are due. Should I file an Affidavit of Exemption with the Arizonia court?
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