Live in California, work in Arizona
Special arrangement: Arizona credits your home state's tax (file Arizona Form WEC to stop Arizona withholding). You end up paying about the higher of the two states' tax.
State income tax: $5,055 a year
Living in California and working in Arizona, you'd pay about $5,055 in state income tax on $100,000 of wages.
Special arrangement: Arizona credits your home state's tax (file Arizona Form WEC to stop Arizona withholding). You end up paying about the higher of the two states' tax.
State tax at different salaries
| Wages | To AZ | To CA | Total | If you worked in CA |
|---|---|---|---|---|
| $50,000 | $0 | $1,040 | $1,040 | $1,040 |
| $75,000 | $0 | $2,775 | $2,775 | $2,775 |
| $100,000 | $0 | $5,055 | $5,055 | $5,055 |
| $150,000 | $0 | $9,705 | $9,705 | $9,705 |
| $250,000 | $0 | $19,005 | $19,005 | $19,005 |
Single filer, all wages earned in Arizona, 2026 state tax rules, standard deductions. Local income taxes not included.
What to do
- Special arrangement: Not a true reciprocity agreement (reverse-credit arrangement, A.R.S. 43-1096): CA residents working in AZ may file AZ Form WEC to stop AZ withholding and effectively owe only CA tax, because AZ credits the tax paid to CA. An AZ nonresident return may still be required.
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Special credit rules
- AZ: Reverse-credit state: for residents of CA, IN, OR, VA working in AZ, AZ (the work state) gives the credit, not the resident state. AZ residents working in those states get no AZ credit for that tax; the other state credits AZ tax instead.
- CA: CA gives residents a credit for tax paid to other states, but NOT for tax paid to AZ, IN, OR, VA (reverse-credit states - those states credit CA tax instead, so CA residents file nonresident returns there to claim it). Nonresidents of CA from states without reverse-credit get no CA credit.
Frequently asked questions
Do I pay Arizona income tax if I live in California?
Yes. Arizona taxes wages earned there by nonresidents. On $100,000 that's about $0.
Do I have to file taxes in both California and Arizona?
Usually yes: a nonresident return in Arizona and a resident return in California, where you claim a credit for the tax paid to Arizona. File the Arizona return first.
Will I be taxed twice?
Not on the same state-level wages. Arizona credits the tax you pay California, so your total is about $5,055 on $100,000, compared with $5,055 if you also worked in California. Local city or county taxes may still apply.
Related
- Live in Arizona, work in California
- Moving from California to Arizona
- Moving from Arizona to California
- Live in California, work in Nevada
- Live in California, work in Oregon
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.