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Capital Gains Tax in Arizona

Combined rate and how to defer it in Arizona.

Arizona's flat 2.50% capital gains rate keeps the combined federal-plus-state figure at 26.3% (20% federal + 3.8% NIIT + 2.50% state), which is modest by national standards but still a real number on a large gain.

Capital gains tax in Arizona

Arizona taxes capital gains at a flat 2.50% state rate, on top of federal. Run the full estimate including depreciation recapture in the capital gains tax calculator.

Defer it with a 1031 exchange

A 1031 like-kind exchange can defer the full 26.3% combined rate. See what your gain defers to in the 1031 exchange calculator, and map your deadlines with the timeline calculator.

Educational only. Confirm current Arizona capital gains rates with a tax professional; state rates change.