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Arizona Estimated Tax Payment Notice for New Surcharge Tax

February 26, 2021

Arizona estimated tax payments are not required to be made in 2021 to account for the new 3.5% surcharge tax added by Proposition 208. Pursuant to Arizona Revised Statutes § 43-581, taxpayers will not incur a penalty for the underpayment of estimated taxes, provided the amount of estimated tax or withholding paid by the taxpayer equals or exceeds the taxpayer's 2020 income tax liability. If you have any additional questions, please email your inquiry to [email protected].

*On March 11, 2022, the Maricopa Superior Court ruled that Proposition 208 is unconstitutional and permanently barred collection of the surcharge.


Friday, February 26, 2021