Taxes

For many Americans, tax season is a compliance exercise: gather documents, file, move on. But for Arizona residents in 2026, filing blind versus filing strategically could mean the difference between leaving money on the table and keeping thousands more in your pocket. This year marks one of the most consequential tax seasons in recent memory. Major federal changes are reshaping how refunds are delivered and how income is taxed, while Arizona continues to offer some of the most powerful state tax credits in the country. Together, these shifts reward taxpayers who understand the rules, and act intentionally. Here’s what Arizonans should know as they prepare to file their 2025 returns.

As the calendar turns and tax season begins, many Arizona residents prepare for what feels like a fixed obligation What often goes unrecognized is that Arizona’s tax system gives taxpayers direct control over where a portion of their state tax dollars go and allows them to do so without increasing what they owe. These credits are not deductions. They work more directly.

2025 was one of the most eventful tax years in recent memory. Between new federal rules, evolving Arizona credits, and major reporting changes affecting everyday taxpayers, this year brought adjustments that many residents will feel for the first time.

As we approach the end of the year, it is the perfect time to highlight an opportunity that many Arizona residents can benefit from. The Arizona Charitable Tax Credits allow taxpayers to directly lower their state tax bill while supporting local organizations that make a meaningful impact in their communities.

The One Big Beautiful Bill Act (OBBBA) recently passed by Congress marks one of the most significant changes to the tax code since the 2017 Tax Cuts and Jobs Act. While the law applies across the United States, several provisions are likely to have an especially strong impact in Arizona. From working families and service industry employees to seniors and business owners, this new legislation could influence how Arizonans earn, save, and pay taxes.

With the Arizona heat in full swing and the real estate market still buzzing, summer is a prime time to buy or sell a home. But beyond negotiating offers and scheduling inspections, smart tax planning can save you thousands when the transaction closes.

As we reach the halfway point of the year, most Arizonans are focused on sunshine and travel plans. Taxes, understandably, aren’t top of mind. But summer is actually one of the most important times to pause, reassess, and get ahead of potential issues that could become costly headaches by next spring.

Imagine saving hundreds of dollars a year just for renting out your home. For Arizona property owners, that scenario is now a reality. On January 1, 2025, Arizona officially eliminated the city Transaction Privilege Tax (TPT) on long-term residential rentals. If you rent out a home, condo, or apartment for 30 days or more, you no longer need to collect or pay local rental tax on that income.

When you sell an asset like a stock, bond, or property for a profit, that gain is taxable. Federally, the rate depends on how long you've held the asset. In Arizona, capital gains are treated as ordinary income and taxed at a flat 2.5% state income tax rate.