1099 Quarterly Taxes in Arizona (2025-2026)
If you're self-employed in Arizona — freelancer, contractor, gig worker, or single-member LLC — you owe quarterly estimated taxes to two agencies: the IRS (federal) and Arizona Department of Revenue (state). Arizona uses a flat 2.50% income tax, which makes estimating your state burden simpler than progressive states. But you still need to send the money on time to avoid underpayment penalties.
Arizona state income tax (2025)
Arizona uses a flat income tax rate of 2.50% on all taxable income above the standard deduction. There are no brackets — every dollar of taxable income is taxed at the same rate.
How to pay Arizona estimated taxes
Federal estimated tax due dates (April 15, June 16, September 15, 2026, and January 15, 2027) apply to your Arizona state estimated payments as well — most states piggyback on the federal schedule. Pay Arizona taxes through the Arizona Department of Revenue's online portal: www.aztaxes.gov. You can also mail Form 140ES with a check.
Arizona-specific quirk freelancers miss
Arizona moved to a flat 2.5% income tax in 2023 — one of the lowest in the country. There's no income-based bracket; every dollar of taxable income above the standard deduction is taxed at 2.5%.
Common deductions for Arizona freelancers
- Arizona allows the same business expenses (home office, mileage, software, etc.) as federal.
- Half of SE tax is deductible federally; check Arizona's rules for state conformity.
- AZ conforms to federal QBI deduction. Half-SE-tax deduction allowed.
- SEP-IRA / Solo 401(k) contributions reduce both federal and Arizona taxable income.
- Self-employed health insurance premiums are deductible federally.