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Arizona Paycheck Guide

Arizona uses a flat state income tax. Everyone pays the same percentage on taxable wages, regardless of income.

PI
Reviewed by PayslipIQ Editorial Team, in-house payroll editor
Last reviewed May 2026 · Editorial standards on methodology

PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, accounting, employment, benefits, or payroll advice. PayslipIQ is not a CPA firm, law firm, financial advisor, payroll provider, or tax authority. Always verify your paycheck, deductions, withholdings, and tax position with your employer's payroll department, a qualified CPA, the IRS, your state tax authority, or another appropriately qualified professional. Calculations are estimates; your actual paycheck may differ based on factors specific to your employer, location, benefits elections, and personal tax situation.

Arizona: the local picture

Arizona moved to a flat 2.5% state income tax in 2023 after consolidating several brackets. It is now one of the lowest-taxing income-tax states. No local income tax. Minimum wage is among the highest in the southwest at $14.70/hr in 2025.

Arizona Paycheck Calculator

Estimate take-home pay for Arizona.

Arizona State Tax

Arizona tax structure and rates.

Arizona Overtime

Federal FLSA applies.

Arizona Pay Stub Laws

Employer pay stub requirements in Arizona.

How a Arizona paycheck is built

Every Arizona worker pays federal income tax, calculated on the W-4 you submitted to your employer using the IRS Publication 15-T tables. Federal income tax is followed by FICA: 6.2 percent Social Security up to the annual wage base, plus 1.45 percent Medicare on every dollar. The 0.9 percent Additional Medicare Tax applies once year-to-date wages cross $200,000 single or $250,000 married filing jointly.

Arizona adds a flat state income tax of approximately 2.50 percent. Verify the current rate with the Arizona Department of Revenue.

What changed recently in Arizona

  • Flat 2.5% rate effective from 2023, no change announced for 2026.
  • Annual minimum wage indexing under Proposition 206.
  • No state-level paid leave program. Sick leave under Prop 206 still applies.

Arizona payroll quirks workers should know

  • Watch the Arizona A-4 form, not just the federal W-4. State withholding is a chosen percentage of gross taxable wages.
  • Several A-4 percentages available (0%, 0.5%, 1.0%, 1.5%, 2.0%, 2.5%, 3.0%, 3.5%). Default for new hires is 2%.
  • No SDI, no PFL, no city tax in Arizona.

Example breakdown

A hypothetical Arizona worker on a $65,000 annual salary, paid bi-weekly, single filer, no extra adjustments. Educational only, your real paycheck differs.

Gross (bi-weekly)$2500.00
Federal income tax-$250.00
Social Security (6.2%)-$155.00
Medicare (1.45%)-$36.25
Arizona state tax-$62.50
Estimated take-home$1996.25

Run your own numbers in the Arizona paycheck calculator.

Authoritative sources

Frequently asked questions

Does Arizona have state income tax?
Yes. Arizona uses a flat state income tax rate. Verify the current rate with the Arizona Department of Revenue.
Are there local income taxes in Arizona?
No. Arizona does not have local income taxes on wages.
Does Arizona have State Disability Insurance or Paid Family Leave premiums?
No. Arizona does not have state-mandated SDI or PFL employee premiums.
Does Arizona have daily-overtime rules?
No. Arizona follows federal FLSA: 1.5x for hours above 40 in a workweek.
What is FICA on a Arizona paycheck?
FICA is federal: 6.2 percent Social Security up to the annual wage base, plus 1.45 percent Medicare on every dollar. The 0.9 percent Additional Medicare Tax applies above $200,000 single or $250,000 married filing jointly. FICA applies in every state.
Where do I verify Arizona state tax withholding?
The Arizona Department of Revenue (https://azdor.gov/) is the authoritative source. For your specific paycheck, contact your employer's payroll team or a CPA.
Why is my Arizona state withholding so low?
Probably because your A-4 is set at a lower percentage than your effective state tax rate. If you owe at filing, raise the A-4 percentage.
Is there a city income tax in Phoenix or Tucson?
No. Arizona has no local income tax anywhere in the state.
I just moved to Arizona from California. Why is my paycheck so much higher?
California top rate is 13.3% plus 1% SDI, Arizona is a flat 2.5% with no SDI. On a $100,000 salary the difference is several thousand dollars a year.