Gov. Ducey orders historic tax cut to take effect in 2023

Gov. Doug Ducey has ordered the state to implement a flat tax change he helped pass a full year ahead of schedule, weeks before the midterm elections.

Ducey’s office sent a letter directing Department of Revenue Director Robert Woods to make the state’s flat tax of 2.5% begin on Jan. 1, 2023. Once in effect, Arizona will have the lowest flat tax in the country.

“It’s time to deliver lasting tax relief to Arizona families and small businesses so they can keep more of their hard-earned money,” the governor wrote. “This tax relief keeps Arizona competitive and preserves our reputation as a jobs magnet and generator of opportunity.”