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Americans for Prosperity Press Release

AFP-AZ Celebrates Early Start on Lowering State Income Tax

Sep 29, 2022 by AFP

Phoenix, Arizona—Americans for Prosperity-Arizona (AFP-AZ) today celebrated the news from Gov. Ducey’s office that Arizona will be able to start phasing in its plan to start lowering the state income tax.

Provisions in a package of tax reform bills signed into law in 2021 included several economic conditions for the state to meet before starting to phase in the new flat tax. Today, the Governor’s office announced that all conditions have been met early and that starting in FY 2023 Arizona’s four personal income tax rates, will be reduced to one flat rate of 2.5% for all Arizonans.

Thanks to this legislation, all Arizonans will see a reduction to their income tax burden starting in fiscal year 2023—a year earlier than originally projected.

AFP-AZ State Director Stephen Shadegg made the following statement after the Governor’s announcement: “This is a historic win for Arizona that couldn’t come at a better time. After overcoming baseless challenges, the series of tax reforms that the Arizona legislature passed will go into effect and offer relief to Arizonans who have had to cope with skyrocketing energy costs and an overall decrease in their purchasing power.

“The best part is that every Arizona will keep more of their hard-earned money when they file their taxes in 2023. Over time, Arizonans will continue to reap the benefits of more tax relief and the state will become even more attractive to businesses and investors, growing the state’s economy while letting hardworking taxpayers keep more of their paychecks.”

To read more about how AFP-AZ worked with lawmakers to advance the lowest flat tax in the nation, click here.