Republican Arizona Rep. Andy Biggs wants to eliminate the state’s individual income tax if elected governor, arguing the change would help Arizona compete with Florida, Tennessee and Texas for companies and jobs.
Biggs told ABC15 Arizona that any phaseout would be incremental. “We’re going to be smart. We’re going to be incremental, but we need to compete with these other states,” he said. Biggs contends lower taxes would draw business investment and ultimately expand state revenue, though the report did not identify a timetable or replacement funding source.
Arizona currently applies a flat 2.5% individual income tax. Joint Legislative Budget Committee figures show the tax generated $4.69 billion through April, compared with $13.7 billion in total General Fund revenue during the first 10 months of fiscal 2026 — roughly one-third. The figures leave a central policy question: how lawmakers would address lost collections through growth, replacement revenue, spending changes or some combination.
Democratic Gov. Katie Hobbs called Biggs’ proposal hypothetical and pointed to the bipartisan state budget, which includes a $1.4 billion tax-cut package. The changes include deductions for tips and overtime, a larger standard deduction and additional relief for seniors and families.
Hobbs’ campaign has highlighted Biggs’ support for the federal FairTax proposal, which would replace federal individual and corporate income, payroll, estate and gift taxes with a 23% tax-inclusive national sales tax and a monthly household payment. That federal plan is separate from his Arizona proposal. Biggs’ campaign says it would reduce taxes overall, while Hobbs’ campaign argues it would increase consumer costs.
The dispute gives voters a sharp tax-policy choice ahead of the Nov. 3 election: Biggs is pitching a long-term move to zero, while Hobbs is defending targeted reductions within the existing system.
