43-1011 - Taxes and tax rates

43-1011. Taxes and tax rates

(L21, Ch. 411, sec. 4)

A. There shall be levied, collected and paid for each taxable year on the entire taxable income of every resident of this state and on the entire taxable income of every nonresident that is derived from sources within this state taxes determined in the following manner:

1. For taxable years beginning from and after December 31, 1996 through December 31, 1997:

(a) In the case of a single person or a married person filing separately:

If taxable income is: The tax is:

$0 — $10,000 2.90% of taxable income

$10,001 — $25,000 $290, plus 3.30% of the excess over $10,000

$25,001 — $50,000 $785, plus 3.90% of the excess over $25,000

$50,001 — $150,000 $1,760, plus 4.80% of the excess over $50,000

$150,001 and over $6,560, plus 5.17% of the excess over $150,000

(b) In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is: The tax is:

$0 — $20,000 2.90% of taxable income

$20,001 — $50,000 $580, plus 3.30% of the excess over $20,000

$50,001 — $100,000 $1,570, plus 3.90% of the excess over $50,000

$100,001 — $300,000 $3,520, plus 4.80% of the excess over $100,000

$300,001 and over $13,120, plus 5.17% of the excess over $300,000

2. For taxable years beginning from and after December 31, 1997 through December 31, 1998:

(a) In the case of a single person or a married person filing separately:

If taxable income is: The tax is:

$0 — $10,000 2.88% of taxable income

$10,001 — $25,000 $288, plus 3.24% of the excess over $10,000

$25,001 — $50,000 $774, plus 3.82% of the excess over $25,000

$50,001 — $150,000 $1,729, plus 4.74% of the excess over $50,000

$150,001 and over $6,469, plus 5.10% of the excess over $150,000

(b) In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is: The tax is:

$0 — $20,000 2.88% of taxable income

$20,001 — $50,000 $576, plus 3.24% of the excess over $20,000

$50,001 — $100,000 $1,548, plus 3.82% of the excess over $50,000

$100,001 — $300,000 $3,458, plus 4.74% of the excess over $100,000

$300,001 and over $12,938, plus 5.10% of the excess over $300,000

3. For taxable years beginning from and after December 31, 1998 through December 31, 2005:

(a) In the case of a single person or a married person filing separately:

If taxable income is: The tax is:

$0 — $10,000 2.87% of taxable income

$10,001 — $25,000 $287, plus 3.20% of the excess over $10,000

$25,001 — $50,000 $767, plus 3.74% of the excess over $25,000

$50,001 — $150,000 $1,702, plus 4.72% of the excess over $50,000

$150,001 and over $6,422, plus 5.04% of the excess over $150,000

(b) In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is: The tax is:

$0 — $20,000 2.87% of taxable income

$20,001 — $50,000 $574, plus 3.20% of the excess over $20,000

$50,001 — $100,000 $1,534, plus 3.74% of the excess over $50,000

$100,001 — $300,000 $3,404, plus 4.72% of the excess over $100,000

$300,001 and over $12,844, plus 5.04% of the excess over $300,000

4. For taxable years beginning from and after December 31, 2005 through December 31, 2006:

(a) In the case of a single person or a married person filing separately:

If taxable income is: The tax is:

$0 — $10,000 2.73% of taxable income

$10,001 — $25,000 $273, plus 3.04% of the excess over $10,000

$25,001 — $50,000 $729, plus 3.55% of the excess over $25,000

$50,001 — $150,000 $1,617, plus 4.48% of the excess over $50,000

$150,001 and over $6,097, plus 4.79% of the excess over $150,000

(b) In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is: The tax is:

$0 — $20,000 2.73% of taxable income

$20,001 — $50,000 $546, plus 3.04% of the excess over $20,000

$50,001 — $100,000 $1,458, plus 3.55% of the excess over $50,000

$100,001 — $300,000 $3,233, plus 4.48% of the excess over $100,000

$300,001 and over $12,193, plus 4.79% of the excess over $300,000

5. Subject to subsections B and C of this section, for taxable years beginning from and after December 31, 2006 through December 31, 2018:

(a) In the case of a single person or a married person filing separately:

If taxable income is: The tax is:

$0 — $10,000 2.59% of taxable income

$10,001 — $25,000 $259, plus 2.88% of the excess over $10,000

$25,001 — $50,000 $691, plus 3.36% of the excess over $25,000

$50,001 — $150,000 $1,531, plus 4.24% of the excess over $50,000

$150,001 and over $5,771, plus 4.54% of the excess over $150,000

(b) In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is: The tax is:

$0 — $20,000 2.59% of taxable income

$20,001 — $50,000 $518, plus 2.88% of the excess over $20,000

$50,001 — $100,000 $1,382, plus 3.36% of the excess over $50,000

$100,001 — $300,000 $3,062, plus 4.24% of the excess over $100,000

$300,001 and over $11,542, plus 4.54% of the excess over $300,000

6. Subject to subsections D and E of this section, for taxable years beginning from and after December 31, 2018:

(a) In the case of a single person or a married person filing separately:

If taxable income is: The tax is:

$0 — $26,500 2.59% of taxable income

$26,501 — $53,000 $686, plus 3.34% of the amount

over $26,500

$53,001 — $159,000 $1,571, plus 4.17% of the

amount over $53,000

$159,001 and over $5,991, plus 4.50% of the amount

over $159,000

(b) In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is: The tax is:

$0 — $53,000 2.59% of taxable income

$53,001 — $106,000 $1,373, plus 3.34% of the amount over $53,000

$106,001 — $318,000 $3,143, plus 4.17% of the amount

over $106,000

$318,001 and over $11,983, plus 4.50% of the amount over $318,000

B. For the taxable year beginning from and after December 31, 2014 through December 31, 2015, the department shall adjust the income dollar amounts for each rate bracket prescribed by subsection A, paragraph 5 of this section according to the average annual change in the metropolitan Phoenix consumer price index published by the United States department of labor, bureau of labor statistics. The revised dollar amounts shall be raised to the nearest whole dollar. The income dollar amounts for each rate bracket may not be revised below the amounts prescribed in the prior taxable year.

C. For each taxable year beginning from and after December 31, 2015 through December 31, 2018, the department shall adjust the income dollar amounts for each rate bracket prescribed by subsection A, paragraph 5 of this section according to the average annual change in the metropolitan Phoenix consumer price index published by the United States department of labor, bureau of labor statistics. The revised dollar amounts shall be raised to the nearest whole dollar. The income dollar amounts for each rate bracket may not be revised below the amounts prescribed in the prior taxable year.

D. For each taxable year beginning from and after December 31, 2019, the department shall adjust the income dollar amount for each rate bracket prescribed by subsection A, paragraph 6 of this section according to the average annual change in the metropolitan Phoenix consumer price index published by the United States department of labor, bureau of labor statistics. The revised dollar amounts shall be raised to the nearest whole dollar. The income dollar amounts for each rate bracket may not be revised below the amounts prescribed in the prior taxable year.

E. For each taxable year beginning from and after December 31, 2020, for taxable income that is subject to the income tax surcharge imposed by section 43-1013, the combined tax rate of the income tax surcharge imposed by section 43-1013 and the highest tax rate imposed by subsection A, paragraph 6, 7, 8 or 9 of this section may not exceed four and one-half percent. If the combined tax rate exceeds four and one-half percent, the highest tax rate imposed by subsection A, paragraph 6, 7, 8 or 9 of this section shall be reduced so that the combined tax rate is four and one-half percent. The department may adopt rules pursuant to title 41, chapter 6 to carry out this subsection.