Arizona Paycheck Calculator

Arizona Paycheck Calculator

The income tax rate in Arizona varies depending on your filing status and income level. For single taxpayers and married filers, the rate is 2.55% for income below $28,653 and 2.98% for income above that threshold. Joint filers and heads of household also face the same rates but for income below $57,305. Certain industries and circumstances, such as seasonal agricultural work, film production, or non-resident disaster recovery aid, may exempt you from Arizona tax withholdings.

If you wish to adjust your withholding, you can request a specific dollar amount per pay period. It’s important to be mindful of overtime, as it can push you into a higher tax bracket and impact your take-home pay. Managing your tax season by over-withholding can be beneficial.

How Arizona Paycheck Tax Calculator Work?

In Arizona, just like in any other state, employers have the responsibility to deduct federal income and FICA taxes from your wages. These funds are then remitted to the IRS, which distributes them among Social Security Tax, Medicare Tax, and your annual income taxes. The amount of taxes withheld by your employer is determined by the information you provide on your W-4 form. It is crucial to fill out this form whenever there is a change in your filing status or when you begin a new job.

The revised W-4 eliminates the use of allowances and the option to claim personal or dependency exemptions. Instead, individuals will be required to input dollar amounts that pertain to income tax credits, non-wage income, itemized and other deductions, as well as total annual taxable wages.

Important Note: The Stubcreator provides a paycheck calculator designed to provide essential guidance. This should not be relied upon to calculate exact taxes, payroll, or other financial data. You should seek a professional accountant regarding any particular requirement.

Taxable Base Wage

The taxable pay basis for unemployment benefits in Arizona will be $8,000 per employee per calendar year beginning on January 1, 2023. This implies that the first $8,000 in gross compensation that a company pays each employee in a given calendar year is subject to unemployment taxes.

SUTA Tax Rates

FUTA Rates

The Federal Unemployment Tax (FUTA) is likewise a requirement for the majority of employers who pay the state unemployment tax in Arizona. Your Arizona state unemployment tax is only used to provide benefits to unemployed workers; the FUTA tax you pay annually funds the administrative expenditures of the Unemployment Insurance program.

FICA Rates

In Arizona, the following are the FICA rates:

For Employees and Employers:

• Social Security Tax: 2.5%
• Medicare Tax: 1.45%

Additional Medicare Taxes

Other Taxes

Your 2024 state tax return will include information on your 2023 taxable income, which is subject to Arizona’s flat 2.5% income tax rate. Your state income tax return deadline usually coincides with the federal tax deadline.

Arizona Payroll Tax Withholding

The state income tax rate in Arizona is 2.5%. The taxable income earned in 2023 is subject to this rate and is recorded on state tax returns that are submitted in 2024.

Arizona Paystub Generator

Below mentioned are the details of Arizona:

• Employees in Arizona are required to complete Form A-4 to initiate the process of payroll taxes. By providing this information, you can accurately calculate the amount that needs to be withheld from their wages.
• Employees are required to revise Form A-4 when they experience life occurrences (such as marriage, divorce, the birth or adoption of a child, etc.) that could potentially affect their tax obligations.
• Personal Income Tax Rate is 2.5%.