California vs. Arizona
On a $75,000 salary, you keep about $2,277 more a year in Arizona. Prices are 10% higher in California, so after adjusting for cost of living Arizona comes out ahead.
Last verified November 2, 2026.
| California | Arizona | |
|---|---|---|
| State income tax | Has a graduated income tax with 9 brackets, from 1% up to 12.3% on taxable income over $742,953 for single filers. | Has a flat income tax of 2.5% on taxable income. |
| Minimum wage | $16.90 | $15.15 |
| Price level (U.S. = 100) | 110.7 | 100.7 |
| Employer cost on a $50,000 hire | $5,147 | $4,377 |
| SUTA wage base | $7,000 | $8,000 |
Take-home pay at the same salary
| Salary | California take-home | Arizona take-home | Difference |
|---|---|---|---|
| $50,000 | $40,665 | $41,508 | $842 more in Arizona |
| $75,000 | $57,843 | $60,120 | $2,277 more in Arizona |
| $100,000 | $72,825 | $77,083 | $4,257 more in Arizona |
| $150,000 | $102,136 | $110,444 | $8,307 more in Arizona |
Single filer, standard deduction, tax year 2026. Excludes local income taxes.
Adjusted for cost of living
Using BEA regional price parities, $57,843 in California buys what $52,243 buys in an average-priced state, and $60,120 in Arizona buys what $59,716 does. To keep the same buying power moving from California to Arizona, a $75,000 salary would need to be about $68,197 before the tax difference.
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Frequently asked questions
- Is California or Arizona better for take-home pay?
- On $75,000, you keep about $2,277 more a year in Arizona. Adjusted for prices, Arizona comes out ahead by $7,473.
- Which state is cheaper for employers, California or Arizona?
- Employer taxes and insurance on a $50,000 hire are about $5,147 in California and $4,377 in Arizona.