2026 tax year · Arizona
Services and task work taxes in Arizona
TaskRabbit, Rover, Upwork and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is mileage, in Arizona that gap is worth $2,157 in tax.
Take a driver who grossed $34,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the services and task work page $9,030 comes off and $24,970 is left as taxable profit. That profit is what Arizona and the IRS charge against.
What that leaves you owing in Arizona
Arizona taxes income at a flat 2.5% for 2026, applied on top of federal income tax and self-employment tax.
| Self-employment tax | $3,528 |
| Federal income tax | $568 |
| Arizona income tax | $580 |
| Total tax | $4,677 |
| Effective rate on gross | 13.8% |
Earning more in Arizona
A single filer taking the standard deduction, standard mileage method, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | Arizona tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time | $11,000 | $1,485 | $9,515 | $221 | $1,565 | 14.2% |
| Steady side income | $34,000 | $4,455 | $29,545 | $686 | $5,770 | 17.0% |
| Full-time | $55,000 | $7,425 | $47,575 | $1,105 | $10,278 | 18.7% |
Switching state opens that state's page.
Enter your numbers and press Calculate to see your 2026 estimate.
Arizona specifics that change the number
Arizona is a community property state. In community property states, income earned during marriage is generally owned equally by both spouses. This affects QJV eligibility, MFS filing strategies, and retirement account contribution rules.
Working across an Arizona line
Services income is sourced to where the work was physically done. A job over the line can create a filing obligation in that state even for a single afternoon, and reciprocity agreements do not help, they cover wages paid by an employer, not self-employment income.
On $24,970 of profit, what the states around Arizona would charge:
| State | Its tax | vs Arizona |
|---|---|---|
| Nevada | No income tax | −$624 |
| California | $291 | −$333 |
| New Mexico | $933 | +$309 |
| Utah | $1,124 | +$499 |
- Nevada has no income tax at all, so the same work done there costs $624 less in state tax than it does in Arizona.
- California would take $333 less, $291 against Arizona's $624.
- New Mexico would take $309 more, $933 against Arizona's $624.
- Utah would take $499 more, $1,124 against Arizona's $624.
Services and task work tax questions in Arizona
How much should an Arizona contractor set aside?
About 13.8% of gross on the $34,000 example, $4,677 across self-employment tax, federal income tax and $580 to Arizona. Set aside from each payout rather than finding it in April.
Does the $34,000 on my 1099-NEC match what Arizona taxes?
No. Arizona taxes profit, not gross. After $9,030 of deductions the taxable figure is $24,970, so the Arizona bill is $580 rather than what gross alone would suggest.