2026 tax year · Arizona
RSU tax in Arizona
A $60,000 vest costs $1,500 in Arizona tax on top of the federal bill. And the federal share withheld is $2,970 short.
What a $60,000 vest actually costs in Arizona
A single filer already earning $180,000 in salary. The vest stacks on top of that, so it fills the highest brackets rather than starting at the bottom:
| Withheld by your employer at 22.0% | $13,200 |
| Federal tax the vest actually costs | $16,170 |
| Federal shortfall, owed in April | $2,970 |
| Arizona income tax on the vest | $1,500 |
| Total still to find | $4,470 |
The withholding rate is flat, 22.0% below $1 million of supplemental pay. And takes no account of your salary. That is why the gap grows the more you earn.
The gap widens with salary
| Salary | Withheld | Actually owed | Shortfall | Arizona tax |
|---|---|---|---|---|
| $90,000 | $13,200 | $13,764 | $564 | $1,500 |
| $160,000 | $13,200 | $14,570 | $1,370 | $1,500 |
| $260,000 | $13,200 | $20,630 | $7,430 | $1,500 |
How Arizona treats a vest
Arizona taxes a vest as ordinary income like any other wages, adding $1,500 on top of the federal bill for $60,000 of vesting stock.
If you moved during the vesting period, the income is split between the states you worked in across it: Days worked in each state / total days in vesting period x RSU income = each state's allocation That is worked out day by day, not by where you lived on the vesting date.
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.
What the same vest costs around Arizona
Total income of $240,000 in the states Arizona borders:
| State | Its tax | vs Arizona |
|---|---|---|
| Nevada | No income tax | −$6,000 |
| Utah | $10,800 | +$4,800 |
| New Mexico | $11,770 | +$5,770 |
| California | $18,575 | +$12,575 |
- Nevada has no income tax at all, so the same work done there costs $6,000 less in state tax than it does in Arizona.
- Utah would take $4,800 more, $10,800 against Arizona's $6,000.
- New Mexico would take $5,770 more, $11,770 against Arizona's $6,000.
- California would take $12,575 more, $18,575 against Arizona's $6,000.
RSU questions in Arizona
Should I sell at vest?
Selling immediately raises the cash for the $4,470 you still owe and leaves no capital gain, because the sale price equals the price you were already taxed on. Holding turns it into an investment decision, any further gain is a capital gain, and any fall is a loss you take on shares you were already taxed on at the higher value.
I moved to Arizona mid-vest, who taxes it?
Both states, split by workdays. The income is allocated across the vesting period, not assigned to wherever you happened to live on the vesting date. The state you left can still claim its share, and California, New York and Massachusetts pursue it hardest.