On January 1, 2022, the following new Arizona laws became effective:
- The minimum wage is $12.80 per hour, which is an increase from $12.15 per hour.
- Instead of having four state income tax brackets, Arizona income tax changed to two tax brackets. The tax rates are 2.55 percent and 2.98 percent. Single people and married people filing separately pay the lower rate if their taxable income is $27,272 or less or the higher rate if their taxable income exceeds $27,272. Married people filing jointly pay the lower rate if their income is less than $54,544 or the higher rate if their taxable income exceeds that amount.
- The Arizona Homestead exemption increased from $150,000 to $250,000, but this equity amount is no longer protected from liens that arise from a civil judgment. In general this exemption protects the first $250,000 of equity a single person or a married couple have in the Arizona home in which they reside from the home owner(s) involuntary creditor(s). Under the new law, however, if a creditor gets a judgment against the home owner issued by a court the homestead exemption no longer prevents the creditor from getting the homestead exemption amount.