For more detail on how deductions change taxable wages and take-home
pay, see our
pre-tax vs. post-tax deductions guide.
Arizona Paycheck Tax Calculator: How Arizona Withholding Works
An Arizona paycheck calculator works differently
from most state calculators. There are no Arizona tax brackets,
allowances or withholding tables to apply. The employer simply
multiplies your Arizona taxable wages by the percentage on your Form
A-4, then adds any extra amount you asked for. Arizona's actual
income tax is a flat 2.5% of taxable income, and your return squares
up the difference between what was withheld and what you owe. Use this section as an Arizona withholding calculator and Arizona income tax calculator when comparing Form A-4 choices.
Form A-4: Your Arizona Withholding Election
New employees are supposed to complete Form A-4 within five days of
starting work. The 2026 form offers 0.5%, 1.0%, 1.5%, 2.0%, 2.5%,
3.0% and 3.5% of gross taxable wages, plus a line for an extra dollar
amount per paycheck. If you don't turn one in, your employer must
withhold 2.0%. You can also elect 0% if you expect to owe no Arizona
tax for the year, but that election has to be renewed every year.
File a new A-4 whenever your income or household changes.
Federal Withholding for Arizona Paychecks
Federal income tax withholding is based on your wages, pay frequency
and Form W-4. The calculator supports filing status, Step 2(c),
Step 3 credits and Step 4(a), 4(b) and 4(c). For more detail, see our
2026 federal tax withholding guide.
Social Security is 6.2% up to $184,500 in 2026, and Medicare is
1.45% of all wages, plus 0.9% above $200,000.
Tips and Overtime: Arizona's New Deductions
Arizona adopted the federal deductions for qualified tips and
overtime pay in HB 4168, signed June 13, 2026, for tax years 2025
and later. They don't change paycheck withholding: tips and overtime
are still withheld at your A-4 percentage. The savings come when you
file, as a subtraction on your Arizona return. If you earn a lot of
tips or overtime, you may be able to choose a lower A-4 percentage,
but check your expected return before you do. For the federal side,
see why overtime is still taxed on your 2026 paycheck.
Bonuses and Supplemental Pay
Because Arizona withholding is a percentage of gross taxable wages,
bonuses and commissions are withheld at the same A-4 percentage as
your regular pay. A $5,000 bonus at 2.0% means $100 of Arizona
withholding. Federal withholding on a separately paid bonus is
usually a flat 22%, and Social Security and Medicare still apply.
Working Across State Lines
Arizona has reciprocity with California, Indiana, Oregon and
Virginia. Residents of those states who work in Arizona can file
Form WEC with their employer so Arizona tax isn't withheld; they pay
tax to their home state instead. Other nonresidents generally owe
Arizona tax on wages for work performed in Arizona. Arizona residents
who work in another state usually claim a credit on their Arizona
return for tax paid to that state.
No Local Income Tax
No Arizona city or county taxes wages, so Phoenix, Tucson, Mesa and
every other city add nothing to your paycheck deductions. Arizona's
state and city sales taxes affect what you pay at the register, not
your take-home pay.
Employer Payroll Costs in Arizona
Some Arizona payroll costs never show up on an employee's pay stub.
Employers pay state unemployment insurance on the first $8,000 of
each employee's wages, with new employers at 2.0% in 2026, plus the
employer share of Social Security and Medicare and federal
unemployment tax. Arizona withholding is reported quarterly on Form
A1-QRT and reconciled annually on Form A1-R with the employees'
W-2s. When year-end comes, our
W-2 form generator
can use the same wage and withholding totals.
Why Your Actual Arizona Paycheck May Differ
This calculator is a close estimate, not your employer's payroll
run. Year-to-date wages, benefit elections, rounding by pay period,
a 27th biweekly payday in some years, and whether your employer has
your current A-4 on file can all change the result. If Arizona
withholding looks wrong, compare the percentage on your pay stub with
the one you chose on Form A-4.
Official 2026 Arizona Payroll Sources
Payroll facts on this page are checked against
Arizona Form A-4 (2026),
the
Arizona Department of Revenue withholding guidance,
IRS Publication 15-T for 2026
and the
Social Security Administration taxable maximum.
Reviewed September 23, 2026.
