Arizona Payroll · Flat 2.5% · Form A-4 · IRS Publication 15-T
Arizona Paycheck Calculator 2025
Estimate your Arizona take-home pay for hourly or salaried work in a single form. The calculator deducts federal income tax withholding, Social Security, Medicare, and Arizona income tax withheld at the Form A-4 percentage you elect, then checks that percentage against the flat 2.5 percent Arizona tax so you can see whether the 2.0 percent default leaves you owing. Uses 2025 IRS Publication 15-T and the current Arizona withholding rules.
Pay Details
Sets the federal table and the Arizona standard deduction used to project your 2.5% liability.
Check this on Form W-4 if you hold two jobs or your spouse also works. It switches to the higher Step 2 withholding schedule.
W-4 Adjustments (Optional)
Annual dependent credit total (e.g. $2,000 per child under 17)
Step 4c additional federal withholding per paycheck
Arizona Tax (Form A-4)
The percentage of gross taxable wages you elect on Form A-4. A new hire who files no A-4 within five days defaults to 2.0%.
Optional additional Arizona amount you can request on Form A-4.
Enter your pay details and click Calculate to see your take-home pay breakdown.
Want the full Arizona payroll picture, including how the A-4 percentage reconciles on Form 140, the reciprocity rules for California, Indiana, Oregon, and Virginia commuters, and the employer unemployment obligations to the Department of Economic Security? Read the Arizona Payroll Taxes guide.
Arizona Payroll Taxes Guide →Short Answer
This Arizona paycheck calculator estimates net take-home pay after federal income tax withholding, Social Security (6.2%), Medicare (1.45%), and the flat Arizona income tax. Arizona withholds a single percentage of your gross taxable wages, chosen on Form A-4 from 0.5% up to 3.5%, defaulting to 2.0% if you file no A-4. The actual tax is a flat 2.5% of income after the standard deduction, so the 2.0% default can leave higher earners owing at filing. For a single Arizona worker earning $65,000 per year paid biweekly at the 2.0% default, gross pay is about $2,500 per period and net take-home is roughly $2,031 after about $227 of federal withholding, FICA, and $50 of Arizona income tax. Arizona has no local wage tax and no state disability or family leave deduction, so the stub is short.
Key Takeaways
- Arizona withholds a single flat percentage of your gross taxable wages, set by your Form A-4 election. The choices are 0.5%, 1.0%, 1.5%, 2.0%, 2.5%, 3.0%, and 3.5%, or exempt. There are no allowances or exemption counts the way Virginia or the federal W-4 use.
- If you file no A-4 within five days of hire, your employer withholds the 2.0% default. This is not the same as Arizona's 2.5% flat tax, so the default can under-withhold, especially for higher earners.
- Arizona's income tax is a flat 2.5% for 2023 and beyond, the lowest flat rate among states with an income tax. It applies to Arizona taxable income, which is gross income minus the standard deduction ($15,750 single, $31,500 married filing jointly, $23,625 head of household for 2025).
- Because the standard deduction shrinks taxable income, 2.0% of gross wages roughly covers the bill for lower and middle earners but falls short above about $78,750 of wages for a single filer. The calculator projects your withholding against the 2.5% liability so you can see the gap.
- Federal income tax uses the IRS Publication 15-T percentage method on annualized wages. Social Security is 6.2% up to the 2025 wage base of $176,100; Medicare is 1.45% with no cap plus a 0.9% surtax that employers withhold on wages above $200,000.
- Arizona has no municipal or county wage income tax and no employee-paid disability, family leave, or unemployment deduction. It has reciprocity with California, Indiana, Oregon, and Virginia through Form WEC. For supplemental pay such as bonuses and RSUs, use the Bonus Tax Calculator and RSU Tax Calculator.
2025 Arizona Payroll Tax Quick Reference
| Tax | Rate | Wage Base / Threshold | Notes |
|---|---|---|---|
| Federal Income Tax | 10%–37% | No cap | Graduated brackets. Based on W-4 filing status and Publication 15-T percentage method tables. |
| Social Security (OASDI) | 6.2% employee | $176,100 (2025) | Withholding stops at wage base. Employer matches 6.2%. |
| Medicare (HI) | 1.45% employee | No limit | Employer matches 1.45%. |
| Additional Medicare Tax | 0.9% | $200,000 single/HOH; $250,000 MFJ; $125,000 MFS | Employee only. Employer withholds once individual wages exceed $200,000 in the calendar year. |
| Arizona Income Tax (withheld) | A-4 percentage | 0.5%–3.5% of gross taxable wages | Employee-elected flat percentage. Default 2.0% if no A-4 is filed. |
| Arizona Income Tax (actual) | 2.5% flat | Taxable income after standard deduction | The true rate for 2023 and beyond. Reconciled on Form 140. |
| AZ standard deduction | – | $15,750 / $31,500 / $23,625 | Single / MFJ / HOH for 2025; equals the federal standard deduction. |
| Employee UI / disability / family leave | None | – | Arizona deducts none from employees. Unemployment is employer-funded through DES on the first $8,000 of wages. |
| Local wage income tax | None | – | No city or county wage tax anywhere in Arizona. |
How This Calculator Works
Hourly Mode: Gross Pay Per Period
Gross pay per period equals the hourly rate multiplied by hours worked per week, then scaled to the pay period. For biweekly pay: hourly rate × hours per week × 2. For weekly: hourly rate × hours per week. For semi-monthly and monthly: hourly rate × hours per week × (52 ÷ periods per year).
Salary Mode: Gross Pay Per Period
Gross pay per period equals annual salary divided by the number of pay periods per year. Weekly: ÷ 52. Biweekly: ÷ 26. Semi-monthly: ÷ 24. Monthly: ÷ 12.
Social Security Tax
Social Security is 6.2% of annualized gross wages up to the $176,100 wage base for 2025. The per-period amount is the annualized Social Security tax divided by pay periods. This calculator does not track year-to-date cumulative wages, so for workers approaching the wage base, actual withholding will stop mid-year once the limit is reached.
Medicare Tax
Standard Medicare is 1.45% on all gross wages. The calculator adds the 0.9% Additional Medicare Tax on annualized wages above $200,000, matching the employer withholding rule in IRS Topic 560: employers withhold the surtax once wages exceed $200,000 in a calendar year regardless of filing status. Your final liability on Form 8959 uses filing-status thresholds ($200,000 single/HOH, $250,000 MFJ, $125,000 MFS), so married filers may reconcile the difference at filing.
Federal Income Tax Withholding
The calculator follows IRS Publication 15-T Worksheet 1A (Percentage Method for Automated Payroll Systems) for 2025:
- Annualize the per-period gross pay (multiply by pay periods per year) - line 1c.
- Add Step 4a other income; subtract Step 4b additional deductions - lines 1d-1f.
- Subtract the line 1g allowance: $12,900 for married filing jointly or $8,600 otherwise. If the W-4 Step 2 box is checked, subtract $0 instead. The result is the Adjusted Annual Wage Amount (line 1i).
- Apply the Annual Percentage Method table for the W-4 filing status - the STANDARD schedule, or the Step 2 Checkbox schedule when the Step 2 box is checked - to get the tentative annual withholding (line 2g), then divide by pay periods (line 2h).
- Subtract Step 3 dependent credits divided by pay periods (line 3c).
- Add Step 4c extra withholding per period (line 4b).
Arizona Income Tax Withholding
Arizona is unusual: instead of a formula with allowances or rate tables, the employee simply picks a withholding percentage on Form A-4, and the employer applies it flat to gross taxable wages every paycheck. The steps are:
- Start from gross taxable wages, which is gross pay minus any pre-tax items such as a 401(k) deferral or Section 125 health premium (the amount that lands in Box 1 of the W-2). This calculator does not model pre-tax deductions, so it uses gross pay.
- Multiply by the A-4 percentage you elected: 0.5%, 1.0%, 1.5%, 2.0%, 2.5%, 3.0%, or 3.5%. A new hire who files no A-4 within five days defaults to 2.0%.
- Add any additional flat dollar amount requested on Form A-4.
That per-paycheck amount is the Arizona line on your stub. The rate you pick does not have to match your true tax rate; it is just how much you choose to prepay.
The 2.0% Default Versus the 2.5% Flat Tax
Arizona's actual individual income tax is a flat 2.5% for 2023 and beyond, but it applies to Arizona taxable income, which is your income after the standard deduction, not your gross wages. The withholding percentage applies to gross wages. Those two bases are different, so the default 2.0% rate does not simply equal the 2.5% tax:
| Filing status | 2025 standard deduction | Wages where 2.0% starts to fall short |
|---|---|---|
| Single / MFS | $15,750 | about $78,750 |
| Head of household | $23,625 | about $118,125 |
| Married filing jointly | $31,500 | about $157,500 (single-earner household) |
The break-even wage is where 2.0% of gross equals 2.5% of income after the standard deduction, which works out to five times the standard deduction. Below it, the 2.0% default slightly over-withholds and you see a small Arizona refund; above it, 2.0% under-withholds and you owe on Form 140. The calculator projects your chosen percentage against the 2.5% liability and shows the gap in the results panel so you can decide whether to raise your A-4 rate.
What Arizona Does Not Deduct
Unlike California or New Jersey, Arizona has no state disability insurance, no paid family leave payroll deduction, and no employee unemployment tax. Unemployment insurance is funded entirely by employers through the Arizona Department of Economic Security on the first $8,000 of each worker's wages. There is also no local wage tax anywhere in Arizona. So the Arizona lines on a pay stub are just the one flat income tax line, in addition to the federal taxes.
Real-World Paycheck Scenarios
Scenario 1: Single Worker at the 2.0% Default
Maria earns $65,000 per year at a firm in Phoenix. She is paid biweekly, files single on her W-4, and never returned a Form A-4, so her employer withholds Arizona tax at the 2.0% default. Her biweekly gross is $65,000 ÷ 26 = $2,500.00.
Arizona detail: 2.0% of $2,500 = $50.00 per paycheck, or $1,300 for the year. Her actual liability is 2.5% of ($65,000 − $15,750 standard deduction) = 2.5% of $49,250 = $1,231.25. Because $65,000 is below the roughly $78,750 break-even for a single filer, the 2.0% default slightly over-withholds, and Maria should see a small Arizona refund of about $69. There are no disability, family leave, or unemployment lines that a California worker would see.
Scenario 2: Higher Earner Caught by the Default
David earns $95,000 as an engineer in Tempe. He is paid biweekly, files single, and also left the A-4 at the 2.0% default. His biweekly gross is $95,000 ÷ 26 = $3,653.85.
David's Arizona withholding is 2.0% of $95,000 = $1,900 for the year. His actual liability is 2.5% of ($95,000 − $15,750) = 2.5% of $79,250 = $1,981.25. Because $95,000 is above the break-even, the 2.0% default under-withholds by about $81, which he would owe on Form 140. Switching his A-4 to 2.5% would withhold $2,375 for the year and turn the small balance due into a refund. This is the single most common Arizona paycheck surprise: the default rate is below the flat tax rate.
Practitioner Insight
The Arizona paycheck question we field most is the small balance due that surprises a new resident or new hire. Someone moves to Arizona, starts a job, never fills out the A-4, and gets withheld at 2.0% all year. That feels like it should cover a 2.5% flat tax, and for a modest salary it nearly does because the standard deduction pulls taxable income down. But once wages climb past roughly $78,750 for a single filer, 2.0% of gross no longer covers 2.5% of taxable income, and the client owes a few hundred dollars in April. The fix is one line on Form A-4: elect 2.5% instead of leaving the default.
The second pattern is the reverse. Lower earners who elect 2.5% or 3.0% out of caution end up with a chunky Arizona refund every year because the standard deduction means their true rate is well under 2.5% of gross. If keeping cash during the year matters more than a refund, dropping to 1.5% or 2.0% is usually closer to right. Arizona makes this easy to tune because the A-4 is a single percentage, not a web of allowances.
A third point worth flagging is reciprocity. Arizona has agreements with California, Indiana, Oregon, and Virginia, and the exemption form is Form WEC, not the A-4. A California resident commuting to a Yuma or Lake Havasu employer files the WEC each January so Arizona tax is not withheld and only California tax applies. When that form is missing, we see both states withhold and the worker files two returns to sort it out, when one certificate at the start of the year would have avoided it.
When This Calculator Gives a Less Accurate Estimate
- Pre-tax deductions not entered: A 401(k) or 403(b) contribution and Section 125 medical premiums reduce gross taxable wages, which is the base the A-4 percentage applies to. This calculator does not model pre-tax deductions, so it applies the percentage to full gross, and actual Arizona withholding on a stub with pre-tax items is a little lower.
- Married two-earner households: The liability projection applies the full married-filing-jointly standard deduction against one job's wages. In a household where both spouses work, that deduction is effectively shared, so the projected over-withholding is optimistic. Look at the couple's combined wages against the $31,500 deduction, not one paycheck.
- Reciprocity residents: A California, Indiana, Oregon, or Virginia resident who filed Form WEC has no Arizona income tax withheld at all. This calculator withholds at your A-4 percentage, so it overstates withholding for a reciprocity-exempt commuter. Choose the exempt (0%) option to model that.
- Year-to-date Social Security cap: The calculator annualizes Social Security evenly. For a worker who passes the $176,100 wage base mid-year, actual Social Security withholding stops at that point rather than spreading across every paycheck.
- Supplemental wages: Bonuses, commissions, and other supplemental pay can be withheld under a different method. For the federal supplemental math on a bonus, use the Bonus Tax Calculator.
Frequently Asked Questions
How is take-home pay calculated in Arizona?
Arizona take-home pay equals gross pay minus federal income tax withholding, Social Security (6.2%), Medicare (1.45%), and Arizona income tax withholding. Federal withholding uses IRS Publication 15-T. Arizona income tax is withheld as a flat percentage of gross taxable wages, chosen by the employee on Form A-4 from 0.5%, 1.0%, 1.5%, 2.0%, 2.5%, 3.0%, or 3.5%. If no A-4 is filed within five days of hire, the employer withholds the 2.0% default. Arizona has no local wage income tax and deducts no state disability, family leave, or employee unemployment contributions.
What is Arizona's income tax rate for 2025 and 2026?
Arizona has a flat individual income tax rate of 2.5% for tax year 2023 and beyond, including 2025 and 2026. It is the lowest flat income tax rate among states that levy an income tax. The 2.5% applies to Arizona taxable income, which is gross income minus the Arizona standard deduction. Arizona's standard deduction equals the federal standard deduction: $15,750 single or married filing separately, $31,500 married filing jointly, and $23,625 head of household for 2025.
Why does the 2.0% default A-4 rate sometimes leave me owing tax?
The 2.0% default withholding rate is not the same as the 2.5% flat tax rate. Withholding at 2.0% is applied to your gross taxable wages, while your actual tax is 2.5% applied to your income after the standard deduction. For lower and middle earners the standard deduction shrinks taxable income enough that 2.0% often covers or slightly overshoots the bill. But above roughly $78,750 of wages for a single filer, 2.0% of gross falls short of 2.5% of taxable income, so the default under-withholds and you owe the difference on Form 140. Electing 2.5% or higher on Form A-4 closes the gap.
Does Arizona have a local city income tax?
No. Arizona has no municipal or county wage income tax withheld from employees anywhere in the state, including Phoenix, Tucson, Mesa, and Scottsdale. An Arizona pay stub shows federal taxes and a single Arizona income tax line, with no city or local wage tax. Arizona cities fund themselves largely through transaction privilege (sales) tax rather than a local income tax.
Does Arizona deduct disability, family leave, or unemployment from my paycheck?
No. Arizona does not have a state disability insurance or paid family leave payroll deduction, and it does not deduct unemployment tax from employees. Unemployment insurance is funded entirely by employers through the Arizona Department of Economic Security on the first $8,000 of each worker's wages. So an Arizona pay stub is simpler than a California or New Jersey stub: federal income tax, Social Security, Medicare, and the flat Arizona income tax, and nothing else that is state-mandated.
Which states have income tax reciprocity with Arizona?
Arizona has reciprocal income tax agreements with California, Indiana, Oregon, and Virginia. A resident of one of those four states who works in Arizona can file Form WEC, the Employee Withholding Exemption Certificate, with the employer to stop Arizona withholding, so only the home state's tax applies. The WEC must be renewed at the start of each calendar year. Reciprocity covers wages and salaries only, not business or investment income.
Why does my Arizona withholding differ from my actual state income tax?
Employer withholding is a flat percentage of your wages set by your Form A-4 election. Your final Arizona income tax is computed on Form 140 using your actual taxable income, the standard or itemized deduction, credits, and any additions or subtractions. If your A-4 percentage is lower than your true average tax rate, or you have significant non-wage income, withholding can fall short and produce a balance due. Raising the A-4 percentage or adding an extra withholding amount fixes most gaps.
Why is my Arizona take-home pay different from a no-income-tax state?
Arizona withholds a flat income tax of up to 2.5%, which no-income-tax states like Nevada, Texas, or Florida do not have. At the same gross salary, an Arizona worker keeps a little less of each paycheck than a worker in one of those states. But Arizona's 2.5% is the lowest state income tax rate in the country, and it has no employee disability, family leave, or unemployment deduction, so its stub is much shorter than California's or New Jersey's.
What To Do Next
If your Arizona paycheck estimate looks off, first check which percentage is on your Form A-4, then decide whether it matches your income. If you earn above roughly $78,750 as a single filer and are on the 2.0% default, consider electing 2.5% so you are not short at filing. If you consistently get a large Arizona refund, dropping to 1.5% or 2.0% keeps more in each check. To see how withholding connects to your year-end return, read the Arizona Payroll Taxes guide and our How Payroll Taxes Work guide.
For hourly workers who also receive overtime, the Hourly Paycheck Calculator lets you model specific hours and frequencies. For a generic multi-state view, use the Paycheck Calculator. To understand every line item on your Arizona pay stub, see our How to Read a Pay Stub guide.
If you have self-employment income in addition to wages, the 1099 Tax Calculator estimates your full federal tax burden including self-employment tax. If you need to estimate quarterly payments on that income, use the Quarterly Tax Calculator. To track a filed Arizona refund, use the Arizona Refund Tracker.
Sources & Editorial Disclosure
- Arizona Department of Revenue, Withholding Tax - Individual, Form A-4 percentage options (0.5% to 3.5% of gross taxable wages), the 2.0% default for a missing A-4, the exempt election, and the statement that the tax rate for Arizona taxable income is 2.5% for tax year 2023 and beyond
- Arizona Department of Revenue, Arizona Withholding Percentage Election (Form A-4), 2025 and 2026
- Arizona Department of Revenue, Individual Income Tax Highlights, 2025 standard deduction equal to the federal amount ($15,750 single/MFS, $31,500 MFJ, $23,625 HOH)
- Arizona Department of Revenue, Withholding Exceptions, reciprocity with California, Indiana, Oregon, and Virginia via Form WEC
- Arizona Department of Economic Security, Calculating Unemployment Taxes, employer-funded UI on the $8,000 taxable wage base, 2.0% new-employer rate
- IRS Publication 15-T (2025), Employer's Tax Guide to Federal Income Tax Withholding
- IRS Topic 751, Social Security and Medicare Withholding Rates
- Social Security Administration, 2025 Wage Base ($176,100)
- Authored by Munib Ur Rehman · Reviewed by Nausheen Shahid, LMN Tax Inc. Not affiliated with the IRS or the Arizona Department of Revenue. For informational purposes only.