Arizona Estate & Inheritance Tax

What the Arizona Estate Data Reveals

Arizona imposes no state estate tax, so federal law under IRC § 2001 is the only estate-level levy that applies. With the federal exemption at $13,990,000 per decedent in 2025, the vast majority of Arizona estates clear probate without owing estate tax at any level — though the scheduled 2026 sunset of the TCJA could cut that exemption roughly in half. There is no separate inheritance tax, so beneficiaries receive their share without a second state-level deduction at distribution.

IRS Statistics of Income data show 165 federal estate tax returns filed by Arizona residents in the most recent available year (filing year 2023), reporting $4.56 billion in combined gross estate value. Net federal estate tax paid totaled $0.33 billion that year. Across the multi-year IRS SOI series above, Arizona averages roughly 134 taxable filings per year, with an effective federal rate on reported gross estates of about 7.8%.

Probate itself typically runs 6–12 months in Arizona (roughly 9 months on average), with court filing fees of $140–$380. Attorney compensation is set by statute at approximately 3% of the estate, which is a material fixed cost even for uncontested estates. Arizona does offer a simplified small-estate track for estates under $100,000, which most families use to bypass full formal probate. Because Arizona has adopted the Uniform Probate Code (since 1973), procedures are broadly standardized across counties. Arizona's community property framework also means marital assets generally pass with a 50/50 baseline split, which affects both tax basis step-up and the size of the taxable estate.