When considering the overall cost of living expenses in Fort Defiance, AZ, it's important to take into account the sales tax for Arizona, as well as the rate for income tax in Arizona. Goods and services sold to consumers in any state have some form of sales tax. Each state has its own tax code, which means that sales tax rates vary from state to state, ranging from over 7% in some states to as low as 0% in others. The maximum surtax for Arizona is 10.725%, and the sales tax in the state of Arizona is 5.6%. Alternatively, the tax imposed on your income by the state government is known as income tax. The rate for this tax also varies from state to state, and your rate is affected by your tax bracket, which is determined by your level of income. Income tax rates might be as high as 9%, down to as low as 0%. The range for income tax rates in Arizona starts from 2.59% and goes up to 4.54%.