Arizona Tax Tables X And Y 2018

August 22, 2018

Arizona is one of the most tax-friendly states in the nation, and it's no surprise that many people choose to move there for its minimal taxation. But with two sets of tax tables—X and Y—what exactly are the differences between them? This article will break down the differences between Arizona's Tax Tables X and Y for 2018, and explain how you can use them to your advantage.

Tax Tables X and Y are both used to calculate income taxes in Arizona. Table X is the default table, and it applies to all individuals who are subject to Arizona’s state income tax. Table Y is a special table that applies to certain tax credits and other deductions, such as the Working Poor Tax Credit, or the Arizona Earned Income Tax Credit. The main difference between the two tables is the amount of taxes you owe: Table X has higher tax rates than Table Y, so if you're eligible to use Table Y, you could potentially save a significant amount of money on your taxes.

In order to determine which table you should be using for your taxes, you need to consider some factors like your filing status, taxable income, and the applicable tax rate for your situation. To help you understand the difference between the two tables, let’s take a look at the tax rate tables for both X and Y.

Table X is the default table for Arizona residents, and it applies to individuals who are subject to Arizona’s state income tax. It is divided into three sections, based on the filing status of the taxpayer. For single filers, the tax rates range from 2.59% for taxable income of $0-$10,000 to 4.54% for taxable income of $50,001 and above. For married filing jointly, the rates range from 2.59% for taxable income of $0-$20,000 to 4.54% for taxable income of $100,001 and above. Finally, for head of household filers, the rates range from 2.59% for taxable income of $0-$15,000 to 4.54% for taxable income of $75,001 and above.

In contrast, the tax rate table for Table Y is a bit more complicated. It is divided into four sections, based on the type of credit or deduction being claimed. The first section applies to taxpayers claiming the Working Poor Tax Credit, and the tax rates range from 0.35% for taxable income of $0-$5,000 to 3.06% for taxable income of $25,001 and above. The second section applies to taxpayers claiming the Arizona Earned Income Tax Credit, and the tax rates range from 0.35% for taxable income of $0-$2,500 to 3.06% for taxable income of $12,501 and above. The third section applies to taxpayers claiming the Child and Dependent Care Expense Credit, and the tax rates range from 0.35% for taxable income of $0-$3,333 to 3.06% for taxable income of $16,667 and above. Finally, the fourth section applies to taxpayers claiming the Landlord Credit, and the tax rates range from 0.35% for taxable income of $0-$4,000 to 3.06% for taxable income of $20,001 and above.

So, which table should you use? It depends on your individual situation. If you qualify for any of the credits or deductions mentioned above, then Table Y is probably the best option for you. However, if you don't qualify for those credits or deductions, then sticking with Table X will likely be your best bet.

Overall, understanding the differences between Arizona's Tax Tables X and Y can be a bit complicated. But armed with the information provided in this article, you should be able to make an informed decision about which table is right for you. With a little bit of knowledge and planning, you can make sure you're taking advantage of the most beneficial tax rate for your situation.

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