Arizona Paycheck Calculator
Arizona Paycheck Calculator estimates take-home pay from gross wages, subtracting FICA and state withholding, with simple pre-tax deductions included.
Arizona income tax rate
Arizona now uses a single flat individual income tax rate of 2.5% (effective tax year 2023 and after). In 2022, Arizona temporarily had two brackets (2.55% and 2.98%) as part of the transition away from the prior four-bracket system that previously topped out at 4.50%. Employers withhold Arizona tax as a percentage of gross taxable wages based on your AZ Form A-4 elections in addition to federal W-4. This change simplifies paycheck withholding: once pre-tax deductions are applied, the 2.5% state rate is used (plus FICA; no city income taxes).
| Year | Top Rate / Structure |
|---|---|
| 2016 | 4.54% (graduated brackets) |
| 2017 | 4.54% (graduated brackets) |
| 2018 | 4.50% (graduated brackets) |
| 2019 | 4.50% (graduated brackets) |
| 2020 | 4.50% (graduated brackets) |
| 2021 | 4.50% (graduated brackets) |
| 2022 | 2.98% (two brackets: 2.55% / 2.98%) |
| 2023 | 2.50% flat |
| 2024 | 2.50% flat |
| 2025 | 2.50% flat |
Notes: 2022 brackets (2.55% / 2.98%) per AZDOR; 2023+ flat 2.5% per AZDOR; earlier top rates from historical state and tax references.
Arizona Median household income
Arizona’s median household income has grown strongly over the last decade, with a pandemic dip in 2020–2022 and a rebound into 2023–2024. Using real (inflation-adjusted) dollars lets you compare purchasing power across years. The figures below reflect the Census Bureau’s Real Median Household Income series for Arizona. Use these benchmarks when evaluating offers, relocating within the state, or comparing metros like Phoenix-Mesa-Scottsdale and Tucson to statewide trends.
| Year | Income |
|---|---|
| 2015 | $67,300 |
| 2016 | $72,900 |
| 2017 | $74,900 |
| 2018 | $76,600 |
| 2019 | $85,650 |
| 2020 | $80,470 |
| 2021 | $81,310 |
| 2022 | $78,300 |
| 2023 | $84,800 |
| 2024 | $84,700 |
Source: U.S. Census Bureau (Real Median Household Income series for Arizona).
Number of Arizona cities that have local income taxes
Arizona does not impose local (city or county) income taxes on wages. Your paycheck typically reflects federal withholding, FICA, and the Arizona state income tax only.
| Locality | Resident Rate | Nonresident Rate |
|---|---|---|
| All Arizona cities/counties | None | None |
How Your arizona Paycheck Works
Payroll starts with gross wages each pay period, then subtracts pre-tax deductions (traditional 401(k), HSA/FSA, pre-tax insurance) to arrive at taxable wages. Federal income tax (W-4) and FICA (Social Security and Medicare) are withheld, plus Arizona state income tax at 2.5%. On AZ Form A-4, you elect a state withholding percentage of your wages (e.g., 0.5%–3.5%), which the employer uses to compute state withholding each paycheck; year-end liability is reconciled on your return. Arizona has no city income tax on wages, so local withholding is generally not taken.
Arizona Wage and Hour Laws: Overtime, Pay Frequency
Overtime: Arizona follows the federal FLSA standard—most non-exempt employees earn 1.5× their regular rate for hours over 40 in a workweek (limited exemptions apply).
Pay frequency: Employers must set two or more fixed paydays each month, not more than 16 days apart, with timely payment rules.
Minimum wage (reference): Effective Jan 1, 2025, Arizona’s minimum wage is $14.70 per hour; tipped employees may be paid up to $3.00 less if tips make up the difference.
FAQs
How do I use an arizona paycheck calculator?
Enter gross pay, pay schedule, filing status, AZ A-4 percentage, pre-tax benefits, and any post-tax deductions; it estimates net pay.
What is Arizona’s current state income tax rate?
Arizona has a flat 2.5% rate for tax year 2023 and later.
Did Arizona really have two brackets in 2022?
Yes. 2022 used two rates, 2.55% and 2.98%, before the 2.5% flat tax began in 2023.
Do any Arizona cities have a local wage income tax?
No. Arizona cities and counties do not levy local income taxes on wages.
How does AZ Form A-4 affect my paycheck?
You choose a withholding percentage (e.g., 0.5%–3.5%) of gross taxable wages; employers withhold that amount for state tax each paycheck.
Are bonuses taxed differently for Arizona state tax?
No special supplemental rate applies; Arizona state income tax remains 2.5%. Employers may use federal percentage or aggregate methods for federal tax.
What is Arizona’s 2025 minimum wage?
$14.70 per hour statewide, with a $3.00 tipped credit if tips make up the difference.
How often must I be paid in Arizona?
At least twice monthly, with paydays not more than 16 days apart, on a regular schedule.
Does Arizona tax remote workers living out of state?
Nonresidents are taxed on Arizona-sourced wages; residents are taxed on all income with credits for other states when applicable.
Where can I confirm current Arizona withholding tables and updates?
Check the Arizona Department of Revenue for A-4 guidance and current employer withholding resources.