Arizona Capital Gains Tax Calculator
Calculate your capital gains tax liability in Arizona. Arizona taxes capital gains at rates up to 2.5%, plus federal taxes.
Original purchase price
Renovations, additions — added to your basis
Agent commissions, closing costs, title & transfer fees
Total Tax
$37,550
18.8% effective rate
Capital Gain
$200,000
Tax Breakdown
Sale price minus selling costs and all taxes (before any mortgage payoff).
Federal
$33,800
AZ State
$3,750
Effective Rate
18.8%
Arizona Capital Gains Tax
Arizona has a flat 2.5% income tax, but allows a subtraction of 25% of net long-term capital gain from assets acquired after December 31, 2011 — so the effective top rate on those gains is about 1.875%. The federal home-sale exclusion ($250K single / $500K married) flows through to the Arizona return.
Long-term: 2.5% flat rate, less a 25% subtraction for assets acquired after 12/31/2011 (≈1.875% effective)
Short-term: 2.5% flat rate
NIIT Applied
The 3.8% Net Investment Income Tax applies because your income exceeds $200,000.
Arizona 25% long-term gain subtraction applied
Assumes the asset was acquired after December 31, 2011, which is required for Arizona's 25% long-term capital gain subtraction.
Arizona Capital Gains Tax Details
Tax Treatment
Tax Type
Flat tax rate
Maximum Rate
2.5%
Available Exemptions
- Federal home-sale exclusion ($250K single / $500K married filing jointly) flows through to the Arizona return
- 25% subtraction on net long-term capital gain from assets acquired after Dec 31, 2011 (A.R.S. § 43-1022)
- Selling costs (agent commissions, closing costs) and capital improvements reduce the taxable gain
Arizona Capital Gains Tax FAQ
Official References
- IRS Topic 409: Capital Gains and Losses
Federal capital gains tax guidance
- IRS Publication 523: Selling Your Home
$250K / $500K home-sale exclusion, basis adjustments, and selling expenses
- Arizona DOR — Subtraction for Net Long-Term Capital Gain
Arizona state capital gains rules
This calculator provides estimates. Consult a tax professional for advice specific to your situation in Arizona.