Title 43, Taxation of Income

In this chapter, unless the context otherwise requires: 1. "Arizona adjusted gross income" of a resident individual means the individual's Arizona gross income subject to modifications specified in sections 43-1021 and 43-1022. 2. "Arizona gross income" of a resident individual m…

The following rules shall apply to the definition of "married person" in section 43-1001: 1. An individual who is legally separated from his or her spouse under a decree of dissolution of marriage or of separate maintenance shall not be considered as married. 2. A taxpayer shall …

(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 foll…

(L21, Ch. 412, sec. 15.) 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 fo…

A. In lieu of the tax imposed under section 43-1011, there shall be levied, collected and paid for each taxable year upon the taxable income of each individual who has been a resident of this state for the entire taxable year and whose taxable income for such year is less than fi…

(Caution: 1998 Prop. 105 applies) A. In addition to any other tax imposed by this chapter, for taxable years beginning from and after December 31, 2020, there shall be levied, collected and paid an income tax surcharge to advance public education in this state as follows: 1. In t…

A. For taxable years beginning from and after December 31, 2021, the partners or shareholders of a business that is treated as a partnership or S corporation for federal income tax purposes may consent to be taxed at the entity level at a tax rate that is the same as the highest …

In computing Arizona adjusted gross income, the following amounts shall be added to Arizona gross income: 1. A beneficiary's share of the fiduciary adjustment to the extent that the amount determined by section 43-1333 increases the beneficiary's Arizona gross income. 2. An amoun…

In computing Arizona adjusted gross income, the following amounts shall be subtracted from Arizona gross income: 1. The amount of exemptions allowed by section 43-1023. 2. Benefits, annuities and pensions in an amount totaling not more than $2,500 received from one or more of the…

A. A taxpayer is allowed an exemption of $1,500: 1. For a taxpayer who is blind or if either the taxpayer's central visual acuity does not exceed 20/200 in the better eye with correcting lenses or the taxpayer's visual acuity is greater than 20/200 but is accompanied by a limitat…

A. For taxable years beginning from and after December 31, 2017, in computing Arizona adjusted gross income, a subtraction is allowed under section 43-1022, paragraph 24 for eligible business access expenditures paid or incurred by the taxpayer during the taxable year in order to…

A. In computing Arizona taxable income a subtraction is allowed for qualified crop contributions during the taxable year to one or more charitable organizations. It is not considered to be a double deduction to include both costs of producing the crop and the subtraction in compu…

A taxpayer who elects to file an Arizona small business income tax return under section 43-302 for the taxable year may not make the additions or subtractions under section 43-1021 or 43-1022 to the taxpayer's individual income tax return for amounts that are correctly made as ad…

A. For taxable years beginning from and after December 31, 1993, in computing Arizona adjusted gross income, a taxpayer may subtract from Arizona gross income an amount equal to the cost, exclusive of taxes, interest and other finance charges, but not more than five hundred dolla…

A. If a taxpayer has included in Arizona gross income a gain or loss on the sale of virtual currency or a non-fungible token and in calculating the gain or loss the taxpayer did not include in the basis of the virtual currency or non-fungible token any gas fees paid on the purcha…

A. This section applies if: 1. An item of income was included in gross income for a prior taxable year or years because it appeared that the taxpayer had an unrestricted right to the item. 2. A deduction would be allowable under the internal revenue code or this title for the tax…

A. A taxpayer may elect to take a standard deduction as follows: 1. In the case of a single person or a married person filing separately, the standard deduction is $12,200, subject to subsection H of this section. 2. In the case of a single person who is a head of a household, th…

A. Except as provided by subsections B and C of this section, at the election of the taxpayer, and in lieu of the standard deduction allowed by section 43-1041, in computing taxable income the taxpayer may take the amount of itemized deductions allowable for the taxable year purs…

A. Subject to the following conditions, residents are allowed a credit against the taxes imposed by this chapter for net income taxes imposed by and paid to another state or country on income taxable under this chapter: 1. The credit is allowed only for taxes paid to the other st…

A. There shall be allowed to each resident a credit against the taxes imposed by this title for a taxable year for property taxes accrued or rent, or both, paid in that taxable year, in accordance with subsection B of this section, if all of the following apply: 1. Such resident …

(Caution: 1998 Prop 105 applies) A. Subject to the conditions prescribed by this section and if approved by the qualified electors voting at a statewide general election, for taxable years beginning from and after December 31, 2000 a credit is allowed against the taxes imposed by…

A. Subject to the conditions prescribed by this section, for taxable years beginning from and after December 31, 2020 and ending before January 1, 2042, a credit is allowed against the taxes imposed by this chapter for a taxable year for a taxpayer who is not claimed as a depende…

A. Subject to the conditions prescribed by this section, a credit is allowed against the taxes imposed by this chapter for a taxable year for taxpayers whose Arizona adjusted gross income, plus the amount subtracted for exemptions under section 43-1023 and the amount subtracted f…

A. A credit is allowed against the taxes imposed by this title for a taxable year for each dependent of a taxpayer as provided by this section. B. For taxpayers whose federal adjusted gross income is less than $200,000 for a taxpayer who is a single person, a married person filin…

A. For taxable years beginning from and after June 30, 2011, a credit is allowed against the taxes imposed by this title for net increases in full-time employees residing in this state and hired in qualified employment positions in this state as computed and certified by the Ariz…

A. A credit is allowed against the taxes imposed by this title in an amount determined pursuant to section 41 of the internal revenue code, except that: 1. The amount of the credit is based on the excess, if any, of the qualified research expenses for the taxable year over the ba…

A. For taxable years beginning from and after December 31, 2006 through December 31, 2034, a credit is allowed against the taxes imposed by this title for investment made after June 30, 2006 in qualified small businesses. The amount of the credit is the amount determined and auth…

A. For taxable years beginning from and after December 31, 2020, a credit is allowed against the taxes imposed by this title for processing qualifying forest products. B. The taxpayer is eligible for the credit if all of the following apply: 1. The taxpayer has a current healthy …

A. For taxable years beginning from and after December 31, 2021, a credit is allowed against the taxes imposed by this title for a taxpayer who is a partner in a partnership or a shareholder of an S corporation that elects to pay the tax under section 43-1014. B. The amount of th…

A. A credit is allowed against the taxes imposed by this chapter in an amount that is equal to the excess amount determined pursuant to section 43-1742. B. If any portion of the allowable credit exceeds the taxes due under this chapter or if there are no taxes due under this chap…

A. For taxable years beginning from and after December 31, 2005, a credit is allowed against the taxes imposed by this title for a taxpayer whose employee is a member of the Arizona national guard if the employee is placed on active duty. The amount of the credit is one thousand …

A. A credit is allowed against the taxes imposed by this title for expenses that a taxpayer, involved in the commercial production of livestock, livestock products or agricultural, horticultural, viticultural or floricultural crops or products, incurred during the taxable year to…

(Rpld. 1/1/44) A. For taxable years beginning from and after December 31, 2022, a tax credit is allowed against production costs paid by a motion picture production company in this state that are subject to taxation by this state and that are directly attributable to a motion pic…

A. A credit is allowed against the taxes imposed by this title for each resident who is not a dependent of another taxpayer for installing a solar energy device, as defined in section 42-5001, during the taxable year in the taxpayer's residence located in this state. The credit i…

A. A credit is allowed against the taxes imposed by this title for the production of electricity using renewable energy resources. B. The taxpayer is eligible for the credit: 1. If the taxpayer holds title to a qualified energy generator that first produces electricity from and a…

(Rpld. 1/1/32) A. For taxable years beginning from and after December 31, 2012 through December 31, 2030, a credit is allowed against the taxes imposed by this title for qualifying investment and employment in expanding or locating a qualified facility in this state. To qualify f…

A. A credit is allowed against the taxes imposed by this title for expenses that the taxpayer incurred during the taxable year to purchase and install an agricultural water conservation system in this state. The amount of the credit is equal to seventy-five percent of the qualify…

A. For taxable years beginning from and after December 31, 2005 through December 31, 2018, a credit is allowed against the taxes imposed by this title for a taxpayer who is either: 1. Installing one or more solar energy devices, as defined in section 42-5001 and certified pursuan…

(Rpld. 1/1/27) A. For taxable years beginning from and after December 31, 2007 through December 31, 2026, a credit is allowed against the taxes imposed by this title for cash contributions made by a taxpayer during the taxable year to the pre-9/11 veterans subaccount or post-9/11…

A. Except as provided in subsections B and C of this section, a credit is allowed against the taxes imposed by this title for voluntary cash contributions by the taxpayer or on the taxpayer's behalf pursuant to section 43-401, subsection G during the taxable year to a qualifying …

A. A credit is allowed against the taxes imposed by this title for the amount of voluntary cash contributions by the taxpayer or on the taxpayer's behalf pursuant to section 43-401, subsection G during the taxable year to a school tuition organization that is certified pursuant t…

A. A credit is allowed against the taxes imposed by this title for the amount of any fees paid or cash contributions made by a taxpayer or on the taxpayer's behalf pursuant to section 43-401, subsection G during the taxable year to a public school located in this state for the fo…

A. A credit is allowed against the taxes imposed by this title in the amount of thirty percent of the value of real property and improvements donated by the taxpayer to a school district or a charter school for use as a school or as a site for the construction of a school. B. To …

A. A credit is allowed against the taxes imposed by this title for the amount of voluntary cash contributions by the taxpayer or on the taxpayer's behalf pursuant to section 43-401, subsection I during the taxable year to a school tuition organization that is certified pursuant t…

A. A credit is allowed against the taxes imposed by this title for the pro rata amount of contributions made by an S corporation pursuant to section 43-1183, subsection F or section 43-1184, subsection F, or both. To qualify for the credit: 1. The aggregate contribution in the ta…

A. In the case of nonresidents, Arizona gross income includes only that portion of federal adjusted gross income which represents income from sources within this state. B. Income of a nonresident from the wages or salary received by the nonresident employee who is in this state o…

A. Except as provided in subsection B of this section, income of nonresidents from stocks, bonds, notes or other intangible personal property is not income from sources within this state unless the property has acquired a business situs within this state, except that if a nonresi…

Income of estates and trusts distributed or distributable to nonresident beneficiaries is income from sources within this state only if distributed or distributable out of income of the estate or trust derived from sources within this state.

A. In computing Arizona adjusted gross income, a nonresident individual should make such adjustments as are included in sections 43-1021 and 43-1022 which apply to income included in his Arizona gross income except as provided in subsection B of this section. B. For a nonresident…

In computing Arizona taxable income a nonresident taxpayer, the standard deduction allowed in section 43-1041 and the itemized deductions allowed in section 43-1042 shall be allowed in the percentage that the taxpayer's Arizona gross income is of the federal adjusted gross income…