Pennsylvania vs Arizona Taxes (2026)

Side-by-side comparison of income tax, property tax, sales tax, capital gains, and retirement treatment between Pennsylvania and Arizona for tax year 2026. Use the calculator below to estimate how much you would save (or pay) after relocating.

TaxPennsylvaniaArizona
State income tax (effective)3.07%2.50%
Long-term capital gains3.07%2.50%
Property tax (effective)1.49%0.62%
Combined sales tax6.34%8.40%
Retirement incomeno-taxss-exempt
Income systemflatflat

Tax savings calculator

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Estimated 2026 burden

Pennsylvania total tax

$18,406

Arizona total tax

$17,843

Pennsylvania state tax

$3,036

Arizona state tax

$2,473

Difference

−$564

Arizona saves you money

As % of income

0.47%

Federal tax is identical in both columns and excluded from the difference. Numbers use 2026 IRS brackets, state effective rates, and the 3.8% NIIT where applicable.

Relocation analysis

Moving from Pennsylvania to Arizona could save about $564 per year on this profile — roughly 0.47% of gross income.

  • Property tax difference on a $400k home: $3,480/yr.
  • Sales tax difference on $50k of taxable spending: $1,030/yr.
  • Capital gains difference per $10k gain: $57.

Key differences

  • Pennsylvania: Flat 3.07% individual; retirement income largely exempt; 8.49% corporate, phasing to 4.99%.
  • Arizona: Flat 4.9% corporate rate; aggressive R&D credit.
  • Income system: Pennsylvania is flat, Arizona is flat.
  • Retirement: Pennsylvaniano tax; Arizonass exempt.

Recommended Tax Filing Software

Once you know what you owe, file with software built for your situation. We compare the top U.S. options below.

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Comparison FAQs

It depends on income mix. Arizona has an effective income rate of 2.50% vs Pennsylvania's 3.07%. Property tax (1.49% vs 0.62%) and sales tax can swing the answer.

Related resources

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