Arizona payroll taxes

Arizona state income tax: flat 2.5% on taxable income (effective tax years 2023+). Employers withhold using Arizona Form A-4 percentage elections. [AZDOR]
Federal income tax (FIT): withheld per IRS rules and your federal Form W-4.
FICA: Social Security and Medicare (see details below).
State Unemployment Insurance (SUI): employer-paid only; employees do not pay SUI in Arizona. Taxable wage base is $8,000 (since 2023). New employer rate typically 2.0%; experienced rates vary by schedule. [AZ DES]
Local income taxes: none-Arizona law preempts cities/counties from levying local income taxes. [State law overview]
Pre-tax deductions: 401(k), HSA/FSA, Section 125 premiums can reduce taxable wages (FIT/state, sometimes FICA).
Post-tax deductions: Roth 401(k), garnishments, after-tax benefits.

How Your Arizona Paycheck Works

Start with gross pay for the period (salary or hourly × hours; include overtime if due).
Subtract pre-tax items (traditional 401(k), HSA/FSA, cafeteria plans).
Compute FICA (Social Security up to the wage base; Medicare on all wages; Additional Medicare above $200,000).
Calculate federal withholding via IRS methods and your W-4.
Calculate Arizona withholding via your A-4 percentage or default if no A-4 on file.
Apply Arizona SUI (employer)-this does not reduce your net pay but affects employer cost.
Subtract post-tax deductions to reach net pay.

Arizona unemployment insurance (SUI) - 10 years

Employees do not pay SUI. Employers pay SUI on wages up to the taxable wage base. New employers generally start at 2.0%; experienced rates vary by year and reserve ratio.

Year	Taxable Wage Base	Employee Pays?	New Employer Rate	Notes on Experienced Employer Rate
2016	$7,000	No	2.0%	Ranges set annually by DES schedule
2017	$7,000	No	2.0%	Ranges set annually by DES schedule
2018	$7,000	No	2.0%	DES rate chart published for FY
2019	$7,000	No	2.0%	DES rate chart published for FY
2020	$7,000	No	2.0%	DES rate chart published for FY
2021	$7,000	No	2.0%	DES rate chart published for FY
2022	$7,000	No	2.0%	DES rate chart published for FY
2023	$8,000	No	2.0%	Wage base increased from $7,000 → $8,000
2024	$8,000	No	2.0%	DES rate chart ranges published for FY
2025	$8,000	No	2.0%	Experienced range e.g., ~0.04%–9.72% (agency/industry-specific)

Confirm your exact rate on your annual “Determination of Unemployment Tax Rate” notice from DES.

Arizona salary threshold

Arizona follows federal FLSA rules. Due to ongoing litigation over the 2024–2025 federal overtime rule, as of now the restored federal salary threshold for most white-collar exemptions is $684/week ($35,568/year), unless and until courts or new rulemaking change it. Always check current federal guidance before classifying employees. [U.S. DOL & court updates]

Median Household Income - Arizona (10 years, current dollars)

Year	Median Household Income
2015	$52,250
2016	$57,100
2017	$59,700
2018	$62,280
2019	$70,670
2020	$67,090
2021	$70,820
2022	$73,450
2023	$82,660
2024	$84,700

Source series: “Median Household Income in Arizona” (current dollars, annual). Values are nominal and not inflation-adjusted.

Arizona Federal Insurance Contributions Act (FICA)

Social Security: 6.2% employee + 6.2% employer, up to the annual wage base.
Medicare: 1.45% employee + 1.45% employer on all wages.
Additional Medicare: extra 0.9% employee-only on wages above $200,000.

Number of cities with local income taxes

Arizona does not allow cities or counties to levy local income taxes on wages. Your paycheck will not have a city income tax line anywhere in Arizona. Municipal finance relies on sales (TPT) and property taxes instead, so payroll withholding covers only federal, state, and applicable benefit deductions.

Local income tax table

City/County	Local income/occupational tax rate	Notes
None - Arizona preempts local income taxes; no city or county wage tax applies.

Arizona Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Arizona relies on FLSA-overtime at 1.5× after 40 hours/week (no statewide daily overtime rule). [U.S. DOL / State HR]
Pay frequency: Employers must set two or more fixed paydays per month, no more than 16 days apart. [A.R.S. § 23-351]
Minimum wage (statewide): $14.70 per hour effective January 1, 2025 (indexed annually). Local ordinances (e.g., Flagstaff) may be higher. [Industrial Commission of Arizona]

Additional Arizona forms

Arizona Form A-4 - Employee’s Arizona Withholding Election (percent-based). If not filed within 5 days of hire, default withholding applies. [AZDOR]
A1-QRT - Arizona Quarterly Withholding Tax Return (due Apr 30, Jul 31, Oct 31, Jan 31). [AZDOR]
A1-APR - Arizona Annual Payment Withholding Tax Return (for eligible small withholders; due Jan 31). [AZDOR]
A-4V / A-4P - Voluntary withholding for AZ residents working out-of-state; annuity/pension withholding. [AZDOR]
Arizona New Hire Reporting - report within 20 days of hire/re-hire. [AZ DES / HHS]
Required workplace posters - minimum wage and other notices. [ICA AZ]

FAQs - Arizona Salary Paycheck Calculator

How do I use an Arizona Salary Paycheck Calculator to estimate net pay?

Enter your gross pay and pay frequency, select your federal W-4 details, choose an Arizona A-4 percentage (or default), and add pre-/post-tax deductions. The calculator applies FIT, FICA, Arizona’s flat 2.5% state tax, and ignores local income taxes. Employer-paid SUI doesn’t reduce your take-home.

What Arizona A-4 percentage should I pick?

Arizona uses a percent-of-gross approach. If you don’t submit A-4 within five days, employers must withhold at a default percentage (commonly 2.0%) until you file a new A-4. Choose a higher/lower percentage based on your overall tax situation and credits.

Does any Arizona city take a local income or occupational tax from my paycheck?

No. Arizona preempts local income taxes. Your paycheck won’t include a city wage tax anywhere in the state.

Why does my friend in another state have unemployment tax deducted but I don’t in Arizona?

Arizona funds unemployment insurance through employer contributions only. Employees don’t pay SUI here, though a few other states do deduct UI from employee wages.

What is Arizona’s current SUI wage base and new employer rate?

The wage base is $8,000 (since 2023). New employers generally start at 2.0%; experienced-employer rates vary annually by reserve ratio and schedule.

What salary makes me exempt from overtime in Arizona?

Arizona follows federal law. Due to court rulings, the currently restored federal threshold is $684/week ($35,568/year) unless later changes take effect. Always confirm the latest federal status before classifying employees.

How often must I be paid in Arizona?

At least twice per month, with fixed paydays no more than 16 days apart. Employers must pay on those regular schedules unless an exception applies.

What’s Arizona’s minimum wage now, and does it affect salaried employees?

Arizona’s statewide minimum wage is $14.70 (Jan 1, 2025) and adjusts annually. Salaried non-exempt employees’ salaries must yield at least the applicable minimum wage for all hours worked, and overtime must be paid after 40 hours in a week.

How are bonuses and commissions taxed on an Arizona paycheck?

They’re subject to FIT (using IRS supplemental methods), FICA, and Arizona’s flat 2.5% withholding. There’s no local income tax. Employer SUI continues until the wage base is met.

Can Arizona residents request AZ withholding when working out of state?

Yes-residents working outside Arizona may use Form A-4V to request voluntary Arizona withholding from out-of-state employers who agree to withhold.

Where can I find official tables and forms to double-check my results?

See Arizona Department of Revenue for A-4, A1-QRT, A1-APR and withholding guidance; Arizona DES for unemployment tax rate charts and wage base; Industrial Commission of Arizona for minimum wage posters and wage & hour info.

Arizona Salary Paycheck Calculator