Individual Income Tax Highlights

2023 HIGHLIGHTS

 

Due date for Calendar Year Filers

Your 2023 individual income tax return is due by midnight on April 15, 2024. If you file under a valid extension, your extended due date to file your income tax return is October 15, 2024.

 

2023 Arizona Standard Deduction Amounts Adjusted

The 2023 Arizona standard deduction amounts are:

  • $ 13,850 for a single taxpayer or a married taxpayer filing a separate return;
  • $ 27,700 for a married couple filing a joint return; and
  • $ 20,800 for individuals filing a head of household return.

 

Change to Standard Deduction Increase for Charitable Contributions Computation

For taxpayers who do not itemized deductions on their 2023 Arizona income tax return and elect to take the standard deduction, the allowable Standard Deduction Increase was modified. For tax year 2023, the allowable portion of your charitable contributions used to compute your Standard Deduction Increase was increased from 27% to 31% of the qualified charitable contributions made during the tax year. Taxpayers must complete page 3 of their personal income tax form to claim the Standard Deduction Increase. (Arizona Form 140, Form 140PY or Form 140NR).

 

2023 New Tax Rate of 2.5% for All Income Levels and Filing Status

The Optional Tax Table and the X and Y Tax Table are now obsolete.

 

Credit for Contributions to Private School Tuition Organizations (Form 323)

The allowable current year credit for contributions to private school tuition organizations was adjusted for inflation purposes. For 2023, the maximum current year credit is:

  • $655 for single and head of household taxpayers.
  • $1,308 for married taxpayers filing a joint return.

 

Credit for Contributions Made to Certified School Tuition Organizations (Form 348)

The allowable current year credit for contributions to a certified school tuition organization was adjusted for inflation purposes. For 2023, the maximum current year credit is:

  • $652 for single and head of household taxpayers.
  • $1,301 for married taxpayers filing a joint return.

 

New Individual and Corporate Nonrefundable Tax Credits

 

Credit for Motion Picture Production Costs (Form 334)

For taxable years beginning from and after December 31, 2022, a tax credit is allowed against production costs paid by a motion picture production company in this state that are subject to taxation by this state and that are directly attributable to a motion picture production. The tax credit may be claimed on either the individual’s personal income tax return (Form 140, 140NR, or 140PY) or the Small Business Income tax return, if filing. (Form 140-SBI, 140NR-SBI, or 140PY-SBI).

For more information, see Credit Form 334 and instructions.