Arizona vs Colorado Taxes: Income, Property & Sales

Does Arizona or Colorado have lower taxes? We answer that in a variety of ways below:

Arizona vs Colorado Income Tax Comparison

	Arizona	Colorado
Income Tax Rates & Thresholds	2.55%: $0-$28,653 2.98%: $28,654+	4.40%
Median Income	$73,450	$89,930
Income Tax Paid On Median Household Income	$10,779	$16,055
Income After Tax Based on Median Household Income	$62,671	$73,875

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Arizona vs Colorado Property Tax Comparison

	Arizona	Colorado
Average Property Tax Rate	0.39%	0.40%
Average House Price By State	$429,910	$555,300
Average Property Tax Owed Per Year	$1,677	$2,221
Income After Income Taxes & Property Taxes Based On Median State Household Income	$60,994	$71,654

Arizona vs Colorado Sales Tax Comparison

	Arizona	Colorado
Average State Sales Tax	5.60%	2.90%
Average Local Sales Tax Across the State	2.80%	4.87%
Average Combined Sales Tax Rate	8.40%	7.77%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,726	$5,166
Maximum Disposable Income Based on Median Household Income	$56,268	$66,488

After Tax Comparison Earning $40,000 Per Year Filing As Single

	Arizona	Colorado
Income Tax Owed	$3,741	$4,271
After Tax Income	$36,259	$35,729
Income After Income & Property Tax	$34,582	$33,508
Maximum Disposable Income After Income, Property & Sales Taxes	$31,903	$31,092

After Tax Comparison Earning $60,000 Per Year Filing As Single

	Arizona	Colorado
Income Tax Owed	$7,331	$8,109
After Tax Income	$52,669	$51,891
Income After Income & Property Tax	$50,992	$49,670
Maximum Disposable Income After Income, Property & Sales Taxes	$47,041	$46,089

After Tax Comparison Earning $80,000 Per Year Filing As Single

	Arizona	Colorado
Income Tax Owed	$12,494	$13,419
After Tax Income	$67,506	$66,581
Income After Income & Property Tax	$65,829	$64,360
Maximum Disposable Income After Income, Property & Sales Taxes	$60,728	$59,720

After Tax Comparison Earning $100,000 Per Year Filing As Single

	Arizona	Colorado
Income Tax Owed	$17,728	$18,729
After Tax Income	$82,272	$81,271
Income After Income & Property Tax	$80,595	$79,050
Maximum Disposable Income After Income, Property & Sales Taxes	$74,350	$73,350

After Tax Comparison Earning $100,000 Per Year Filing As Married Filing Jointly

	Arizona	Colorado
Income Tax Owed	$10,539	$11,852
After Tax Income	$89,461	$88,148
Income After Income & Property Tax	$87,784	$85,927
Maximum Disposable Income After Income, Property & Sales Taxes	$80,982	$79,732

After Tax Comparison Earning $150,000 Per Year Filing As Married Filing Jointly

	Arizona	Colorado
Income Tax Owed	$22,370	$24,182
After Tax Income	$127,630	$125,818
Income After Income & Property Tax	$125,953	$123,597
Maximum Disposable Income After Income, Property & Sales Taxes	$116,193	$114,686

After Tax Comparison Earning $200,000 Per Year Filing As Married Filing Jointly

	Arizona	Colorado
Income Tax Owed	$35,455	$37,457
After Tax Income	$164,545	$162,543
Income After Income & Property Tax	$162,868	$160,322
Maximum Disposable Income After Income, Property & Sales Taxes	$150,248	$148,763

After Tax Comparison Earning $250,000 Per Year Filing As Married Filing Jointly

	Arizona	Colorado
Income Tax Owed	$49,459	$51,651
After Tax Income	$200,541	$198,349
Income After Income & Property Tax	$198,864	$196,128
Maximum Disposable Income After Income, Property & Sales Taxes	$183,454	$181,987

FAQ

Does Arizona or Colorado have lower income taxes?

Arizona’s income tax falls into the following range:

• 2.55%: $0-$28,653
• 2.98%: $28,654+

Whereas Colorado’s income tax is the following 4.40%

Does Arizona or Colorado have lower property taxes?

Arizona has an average property tax rate of 0.39%

In comparison, Colorado has an average property tax rate of 0.40%

Does Arizona or Colorado have lower sales taxes?

Arizona has a state sales tax rate of 5.60% and an average local rate of 2.80% for a combined total rate of 8.40%.

In contrast, Colorado has a state sales tax rate of 2.90% and an average local rate of 4.87% for a combined total rate of 7.77%.

Do you get to keep more money in Arizona or Colorado?

Based on median household income after income, property and sales taxes Arizona gives you a maximum amount of disposable income of $56,268

In comparison, Colorado gives you $66,488.

More Comparisons:

Arizona vs Minnesota
Arizona vs South Carolina
Arizona vs Alabama
Arizona vs Louisiana
Arizona vs Kentucky

Sources:

https://en.wikipedia.org/wiki/State_income_tax#Rates_by_jurisdiction

https://www.bankrate.com/real-estate/property-tax-by-state/#by-state

https://fred.stlouisfed.org/release/tables?eid=259515&rid=249

https://www.fool.com/the-ascent/research/average-house-price-state/

https://taxfoundation.org/data/all/state/2022-sales-taxes/

https://www.forbes.com/advisor/income-tax-calculator/