Arizona § 43-1311 - Tax imposed on estates and trusts; rates; annual adjustment

§ 43-1311. Tax imposed on estates and trusts; rates; annual adjustment

A. Except for trusts that are taxable as partnerships or corporations under the internal revenue code, the income of estates or of any kind of property held in trust is subject only to the income tax imposed by subsection B of this section.

B. There shall be levied, collected and paid for each taxable year on the entire taxable income of every resident trust of this state and on the entire taxable income of nonresident trust that is derived from sources within this state taxes determined in the following manner:

1. For taxable years beginning from and after December 31, 2020 through December 31, 2021:

If taxable income is:                 The tax is:

$0 — $27,272                       2.59% of taxable income

$27,273 — $54,544                        $686, plus 3.34% of the amount

over $27,272

$54,545 — $163,632                 $1,571, plus 4.17% of the

amount over $54,544

$163,633 and over                   $5,991, plus 4.50% of the amount

over $163,632

2. Subject to subsection C of this section, for taxable years beginning from and after December 31, 2021 through December 31 of the year in which notice is provided to the department pursuant to section 43-244, subsection A or subsection B, paragraph 1:

If taxable income is:                 The tax is:

$0 — $27,272                       2.55% of taxable income

$27,273 and over                    $695, plus 2.98% of the amount

over $27,272

3. Subject to subsection C of this section, for taxable years beginning from and after December 31 of the year in which notice is provided to the department pursuant to section 43-244, subsection A or subsection B, paragraph 1 through December 31 of the year in which notice is provided to the department pursuant to section 43-244, subsection B, paragraph 2:

If taxable income is:                 The tax is:

$0 — $27,272                       2.53% of taxable income

$27,273 and over                    $690, plus 2.75% of the amount

over $27,272

4. For taxable years beginning from and after December 31 of the year in which notice is provided to the department pursuant to section 43-244, subsection B, paragraph 2, the tax is 2.5% of taxable income.

C. For each taxable year beginning from and after December 31, 2021, the department shall adjust the income dollar amount for each rate bracket prescribed by subsection B, paragraphs 2 and 3 of this section, as applicable, according to the average annual change in the metropolitan Phoenix consumer price index published by the United States department of labor, bureau of labor statistics. The revised dollar amounts shall be raised to the nearest whole dollar.  The income dollar amounts for each rate bracket may not be revised below the amounts prescribed in the prior taxable year.