PRIMER: Reducing The Tax Burden On Arizonans

News Release

April 15, 2019

Governor Ducey pledged to simplify and reduce taxes each year he’s been in office. This year’s fiscally conservative, balanced budget continues to make good on that priority.

During his 2019 State of the State address, Governor Ducey said:

Arizona weathered the storm. Made tough decisions. Held the line on raising taxes and will continue to hold the line on raising taxes. It’s the Arizona way, it’s a winning game plan, and I have no intention of changing course. 

Since 2015, the average Arizona taxpayer pays approximately $1,800 less in federal and state taxes combined. Previous efforts by Governor Ducey to simplify and reduce taxes include:

  • Supporting Our Veterans: In 2018, Arizona increased the state’s Individual Income Tax exemption for retired military veterans from $2,500 to $3,500, allowing Arizona veterans to keep more of their benefits. (HB 2236, 2018)
  • Reducing The Tax Burden: Arizona made it easier for companies to succeed and expand by increasing the depreciation deduction on the purchase of new equipment. As a result, Arizona is relieving the tax burden placed on companies and individuals in Arizona. (HB 2697, 2016)
  • Eliminating The “Hidden Income Tax: In March 2015, Governor Ducey signed legislation to permanently index Arizona’s income tax brackets to inflation, effectively eliminating a hidden tax increase Arizonans had faced every year. (HB 2001, 2015)
  • Increasing Charitable Tax Credits: In 2015, Arizona passed legislation expanding the types of charitable organizations eligible for tax credits to encourage donations to those helping vulnerable youth. Additionally, in 2016, Governor Ducey signed a bill increasing the tax credit available for these contributions and allowing taxpayers to make charitable contributions retroactively, further encouraging charitable donations. (SB 1103, 2015; SB 1216, 2016)
  • Making Taxpayer Dollars Count: In addition to reducing the tax burden on Arizonans, Arizona is working to ensure tax dollars are used efficiently and effectively. Steps taken include streamlining government, cutting red tape, improving customer service and empowering state employees to spend less time dealing with bureaucracy and more time meeting the needs of Arizona citizens.