PHOENIX — The next phase of Arizona’s 2.5% flat tax package will be kicking in a year earlier than expected, Gov. Doug Ducey announced on Thursday.
Ducey said the state’s economy has been growing so much that he has directed the Arizona Department of Revenue to put the flat tax into effect in 2023, rather than in 2024 as originally scheduled under a three-phase plan.
The move means that Arizona will have the lowest flat tax in the nation starting on Jan. 1, the Governor’s Office said.
“It’s time to deliver lasting tax relief to Arizona families and small businesses so they can keep more of their hard-earned money,” the governor wrote in a letter to Arizona Department of Revenue Director Robert Woods. “This tax relief keeps Arizona competitive and preserves our reputation as a jobs magnet and generator of opportunity.”
