Arizona Self-Employed Tax Calculator

Federal + 15.3% SE + Arizona flat 2.5% state income tax on 2026 1099 income for Arizona residents.

Arizona taxes every dollar of self-employment profit at a flat 2.5%, one of the lowest income tax rates in the country. That keeps the state slice small — the federal income tax and the 15.3% self-employment tax do most of the damage, and mileage is usually the deduction that decides your year.

Self-employed income & expenses

Estimate federal + SE + state tax for the 2026 tax year in one pass.

Estimated total tax bill
$11,745
Refund / owed
-$11,745
Effective rate
19.6%

Detailed breakdown

Mileage deduction$5,600
Total business expenses$8,100
Net self-employment income$51,900
Self-employment tax (15.3%)$7,333
½ SE deduction (above-the-line)$3,667
Adjusted gross income$48,233
Taxable income$32,133
Federal income tax$3,608
State tax (est.)$803
Quarterly estimated payment$2,787
Marginal rate14.5%

Frequently asked questions

What is the Arizona income tax rate for self-employed people in 2026?
Arizona uses a flat 2.5% individual income tax rate, so self-employment profit is taxed at 2.5% after Arizona's standard deduction, which matches the federal amount.
Do Arizona freelancers pay state quarterly estimates?
Yes, if you expect to owe $1,000 or more of Arizona tax. File Form 140ES on the same April, June, September, and January schedule as federal 1040-ES payments.
How much should an Arizona 1099 worker set aside?
Most Arizona gig workers land between 22% and 28% of net profit once federal income tax, 15.3% SE tax, and the flat 2.5% state tax are combined.
Does Phoenix or Tucson add a local income tax?
No Arizona city levies a personal income tax. Cities do charge transaction privilege (sales) tax on certain business activity, which is separate from income tax.
Is Arizona mileage deducted at the federal rate?
Yes. Arizona starts from federal adjusted gross income, so the $0.70 per business mile standard rate for 2026 flows straight through to your state return.
Do I need an Arizona TPT license as a freelancer?
Only if you sell taxable goods or certain taxable services. Pure service work such as writing, driving, or consulting generally does not require a transaction privilege tax license.

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