Arizona Paycheck Calculator 2026

How Arizona withholding works: one percentage, no allowances

Arizona does not use brackets, allowances or a standard deduction for withholding. Each employee picks one flat percentage on Form A-4, and the employer applies it to every paycheck's gross taxable wages^[az1]. State law leaves the amount to the department's tables and the employee's election, and anyone who does not return the form is deemed to have chosen the department's default rate^[az3].

The seven choices on the 2026 A-4 are 0.5%, 1.0%, 1.5%, 2.0%, 2.5%, 3.0% and 3.5%. An employee who expects to owe no Arizona tax for the year may elect zero instead. Box 1 also has a line for an extra flat dollar amount per paycheck, added on top of the percentage. A new hire has five days to turn in the form; after that the employer withholds 2.0% until a different election arrives^[az2].

The $60,000 row for 3.5% withholds $1,800 more a year than the 0.5% row. None of that changes what you finally owe Arizona; it only moves money between your paychecks and your refund or balance due in April.

What counts as gross taxable wages in Arizona

Gross taxable wages are the wages that will generally appear in box 1 of your federal Form W-2: gross pay minus pretax deductions such as your share of health insurance premiums^[az1]. The percentage is applied after those deductions, so anything that lowers federal box 1 wages also lowers Arizona withholding.

In the calculator, a 6% traditional 401(k) plus $100 of pre-tax health premiums per check brings Arizona taxable wages on $60,000 down to $53,800. At 2.0% that withholds $41.38 per paycheck instead of $46.15. Social Security and Medicare are figured separately and follow federal rules.

The rate on your Arizona return

Arizona's income tax itself is a single rate of 2.5% of taxable income^[az3b], and ADOR's 2026 estimated-payment booklet tells filers to use 2.5% for 2026^[az5]. Because the return rate applies to income after the standard deduction and is reduced by credits, while the A-4 percentage applies to gross taxable wages, a withholding percentage below 2.5% can still cover a full-year bill. Comparing last year's Arizona tax with your total wages shows which A-4 row comes closest.

Zero elections, December and other Arizona withholding rules

A zero election lasts one calendar year. The employee certifies that no Arizona tax liability is expected (gross tax less credits such as the family tax credit, school tax credits or credits for tax paid to other states). To keep it for the next year, a new A-4 must reach the employer by February 15; otherwise the employer goes back to the 2.0% default^[az2].

• December holiday. An employer may choose not to withhold Arizona tax in December by filing Form A1-E with the department by July 1 and telling employees in writing. Employees can then raise their A-4 percentage to make up the gap^[az3][az4].
• Credit-based reduction. At an employee's written request, an employer may cut withholding by the amount of an expected charitable, school-tuition or public-school tax credit and send that money to the organization each quarter^[az3].
• Nonresidents. Some nonresidents who work in Arizona temporarily are not subject to withholding but can ask for it on the A-4 so their Arizona-source pay is covered^[az1].

Arizona 2026 tax law changes and your paycheck

The 2026 A-4 keeps the same 0.5%–3.5% menu and 2.0% default as 2025, so no new form is required. The year's main Arizona tax bill, HB 4168 (Laws 2026, Chapter 140, signed June 13, 2026), conforms Arizona to the Internal Revenue Code as of January 1, 2026^[az6]. It works through the annual return, not through withholding:

• standard deduction of $15,750 single, $23,625 head of household and $31,500 married filing jointly, retroactive to 2025;
• subtractions for qualified tips and overtime that are deducted federally;
• a dependent tax credit of $125 instead of $100 per dependent under 17, starting in 2026.

Since withholding stays a flat share of pay, these changes show up as a larger refund or smaller balance due unless you pick a lower A-4 percentage. The take-home table below uses the 2.0% default.

Arizona take-home pay on common salaries

Worked example: $60,000 in Arizona

1. Gross pay: $60,000 a year ÷ 26 paychecks = $2,307.69.
2. Federal income tax: the IRS percentage method annualizes $60,000 of taxable wages, subtracts the $8,600 built into the 2026 tables for a standard W-4, and applies the brackets (top rate 12%): $193.08^[p15t].
3. FICA: 6.2% Social Security $143.08 plus 1.45% Medicare $33.46^[tc751].
4. Arizona: Arizona income tax (2% A-4) $46.15.
5. Net pay: $1,891.93 per paycheck, $49,190 a year (82% of gross).

Compare Arizona with nearby states

Same $60,000 salary, different state: California $1,838.66 · Nevada $1,938.08 · Utah $1,835.08 per paycheck. The state tax calculator ranks every state we cover on one salary, and the paycheck calculator switches states in one click. Hourly? Add overtime with the time and a half calculator.