Taxes in Flagstaff

Flagstaff residents pay Arizona's flat 2.5% state income tax, a combined sales tax rate ranging from 9.386% to as high as 12.9% depending on ZIP code, and genuinely low property taxes (0.47% median effective rate) that vary meaningfully by ZIP due to different school-district and special-assessment layers.

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Arizona's flat 2.5% state income tax

Arizona has taxed individual income at a single flat 2.5% rate since tax year 2023, continuing through 2026 -- the lowest flat rate of any state that levies an income tax at all. See arizona.js for the full statewide history; this applies to Flagstaff residents exactly as it does anywhere else in the state.

A combined sales tax rate with real ZIP-level variance

Flagstaff's minimum combined sales tax rate is 9.386% (5.6% AZ state + 1.3% Coconino County + 2.486% City of Flagstaff transaction privilege tax), but the total can run as high as 12.9% in some ZIP codes with additional special taxing districts -- confirm the applicable rate for a specific address rather than assuming 9.386% applies everywhere in the city.

Genuinely low property taxes, with real within-city variance

Flagstaff's own median effective property tax rate is 0.47%, and Coconino County's countywide median is 0.48% -- both well under half the roughly 1.02% national median. Specific bills vary by ZIP code ($2,020/year in 86004 vs. $2,639/year in 86005), reflecting different school-district levies and special-assessment districts layered on top of the city/county base rate.

No state-level retirement income exclusion the way some other states offer

Arizona's flat 2.5% income tax applies to retirement income generally, without a dedicated large retirement-income exclusion of the kind documented for some other states in this dataset (e.g., Georgia's $65,000 exclusion for filers 65+) -- Arizona's appeal for retirees rests more on its low flat rate and low property taxes broadly than on a targeted retirement-income carve-out. Confirm current-year specifics with a tax professional given Arizona's tax code can change.

Key takeaways

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Last reviewed: 2026-08-24. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.