Arizona Self-Employment Tax Calculator

Calculate your self-employment tax, federal income tax, and Arizona state income tax as a freelancer or 1099 contractor. Arizona has a flat income tax rate of 2.

Annual Tax Breakdown

1099 Income
$85,000
Business Expenses
-$10,000
Net Profit
$75,000
Net Earnings (92.35%)(SE tax base)
$69,263
Social Security (12.4%)
-$8,589
Medicare (2.9%+)
-$2,009
Total SE Tax
-$10,597
SE Deduction (50%)(reduces income tax)
$5,299
Federal Income Tax
-$6,794
State Income Tax
-$1,875
Total Tax Owed
$19,266

Summary

Total Income
$75,000
Total Taxes
-$19,266
After-Tax Income
$55,734
Effective Tax Rate(on total income)
25.7%

Quarterly Estimated Payments

Q1 (Jan-Mar)Due April 15
$4,817
Q2 (Apr-May)Due June 15
$4,817
Q3 (Jun-Aug)Due September 15
$4,817
Q4 (Sep-Dec)Due January 15 (next year)
$4,817
Each Quarterly Payment
$4,817

Tax Breakdown

See your complete freelancer financial picture

Your estimated quarterly tax payment is $4,817. Model your freelance income alongside expenses, savings, and investments in the full simulator.

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Arizona Tax Overview for Freelancers

Arizona has a flat income tax rate of 2.5%, one of the lowest flat rates in the country. This simplifies tax planning significantly. Self-employed individuals in Arizona pay federal self-employment tax (15.3%) plus federal income tax, and Arizona state income tax on their net self-employment earnings.

Flat 2.5% tax rateNo tax on Social Security benefitsGrowing tech and healthcare job markets

Self-Employment Taxes in Arizona

If you work as a freelancer or independent contractor in Arizona, your tax situation involves multiple layers: federal self-employment tax, federal income tax, and Arizona state income tax. Understanding how each component works helps you plan your quarterly estimated payments and maximize your deductions.

Arizona Income Tax for Freelancers

Arizona has a flat income tax rate of 2.5%, one of the lowest flat rates in the country. This simplifies tax planning significantly.

Cost of Living for Freelancers in Arizona

Arizona's cost of living is near the national average, with affordable housing outside of the Phoenix and Scottsdale metro areas. As a freelancer in Arizona, your effective earnings depend not just on your tax rate but also on what your after-tax income can buy. Consider local costs for housing, coworking spaces, and daily expenses when setting your rates.

Financial Tips for Arizona Freelancers

  • Arizona's 2.5% flat tax rate is among the lowest in the nation — great for high earners
  • Arizona does not tax Social Security benefits
  • The growing Phoenix metro area offers strong job markets in tech and healthcare
  • Arizona's warm climate attracts retirees — plan for retirement-friendly taxation

Key Arizona Tax Features

  • Flat 2.5% tax rate
  • No tax on Social Security benefits
  • Growing tech and healthcare job markets

Model Your Arizona Freelance Finances Over Time

This calculator shows your Arizona tax bill. Trajectoryy's full simulator models your freelance income alongside expenses, savings, investments, and more — month by month for years into the future.

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Compare Arizona with Other States

California13.3% top rateNevadaNo income taxUtah4.65% top rateCalifornia13.3% top rateNew York10.9% top rateTexasNo income tax

Frequently Asked Questions

How is self-employment tax calculated in Arizona?
Self-employed workers in Arizona pay federal self-employment tax (15.3% on 92.35% of net earnings), federal income tax, and Arizona state income tax. Arizona has a flat income tax rate of 2.5%, one of the lowest flat rates in the country. This simplifies tax planning significantly.
How much will I owe in quarterly taxes as a freelancer in Arizona?
Your quarterly estimated tax payment in Arizona depends on your total tax liability — including SE tax, federal income tax, and Arizona state income tax. Use the calculator above to estimate your quarterly payments. As a general rule, freelancers should set aside 25-35% of their net income for taxes.
What business deductions are available for Arizona freelancers?
Freelancers in Arizona can deduct the same federal business expenses as in any state: home office, equipment, software, health insurance, vehicle expenses, and more. These deductions also reduce your Arizona state taxable income, providing additional state tax savings.
Does Arizona have any special taxes for self-employed workers?
Arizona does not have a separate self-employment tax. However, your net self-employment income is subject to Arizona's regular income tax (2.5% top rate) in addition to federal self-employment tax and federal income tax.
Should I form an LLC or S-Corp as a freelancer in Arizona?
The decision to form an LLC or S-Corp in Arizona depends on your income level. Generally, if your net self-employment income exceeds $50,000-$60,000, an S-Corp election may save you money by allowing you to pay yourself a reasonable salary (subject to FICA/Medicare) while taking the rest as distributions (not subject to SE tax). Consult a Arizona tax professional for advice specific to your situation.

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State Tax-$2,384
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