How Arizona withholding works
Arizona does not use allowances or tables: each employee chooses a flat percentage of gross taxable wages on Form A-4 – 0.5%, 1.0%, 1.5%, 2.0%, 2.5%, 3.0% or 3.5% – and may add an extra fixed amount. Employees who expect no Arizona tax can elect 0%, but must renew that election every year. An employee who does not submit Form A-4 is withheld at 2.0%.
The tax itself is a flat 2.5% of Arizona taxable income, settled when you file your return.
Worked example: $60,000 in Arizona
Single, $60,000 salary, paid every two weeks, Arizona
Gross pay is $2,307.69 per paycheck. Federal income tax is $193 and Social Security and Medicare $177. Arizona withholds $46. Take-home pay is $1,892 per paycheck, or $49,190 a year.
Take-home pay per paycheck$1,891.9226 paychecks a year
- Take-home pay per year
- $49,190
- Federal income tax withheld
- $193.08
- Arizona income tax withheld
- $46.152% elected on Form A-4
| Item | Per paycheck | Per year |
|---|---|---|
| Gross pay | $2,307.69 | $60,000.00 |
| Federal income tax | −$193.08 | −$5,020.08 |
| Social Security (6.2%) | −$143.08 | −$3,720.08 |
| Medicare (1.45%) | −$33.46 | −$869.96 |
| Arizona income tax | −$46.15 | −$1,199.90 |
| Take-home pay | $1,891.92 | $49,189.98 |
At $100,000 a year, take-home pay is about $77,180 a year.