Arizona paycheck taxes at a glance
| State income tax | Flat 2.5% |
|---|---|
| Standard deduction | $15,750 single, $31,500 joint, $23,625 head of household |
| Per dependent | $125 credit |
| Pre-tax deductions | 401(k), HSA and health premiums lower state tax too |
| Local income tax | None on wages |
| State payroll deductions | None |
| Reciprocity | None |
| Figures | Tax year 2025 (see note) |
Every paycheck also has federal income tax, Social Security (6.2% up to $184,500) and Medicare (1.45%), worked out with the same 2026 IRS figures as ourmain paycheck calculator.
Worked examples
A $55,000 salary in Phoenix, single, paid every two weeks
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $2,115.38 | $55,000 |
| Federal income tax | − $170.00 | − $4,420 |
| Social Security and Medicare | − $161.83 | − $4,208 |
| Arizona income tax | − $37.74 | − $981 |
| Take-home pay | $1,745.82 | $45,391 |
Single, paid every two weeks (26 paychecks). Arizona taxable income is $39,250 and the state tax is $981, an effective 1.784% of gross pay. Only income above the $15,750 standard deduction is taxed, and at just 2.5%, so the state line is far smaller than federal tax or FICA.
A $120,000 household in Tucson, married filing jointly with two children
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $4,615.38 | $120,000 |
| 401(k) at 6% | − $276.92 | − $7,200 |
| Federal income tax | − $183.69 | − $4,776 |
| Social Security and Medicare | − $353.08 | − $9,180 |
| Arizona income tax | − $68.56 | − $1,783 |
| Take-home pay | $3,733.13 | $97,062 |
Married filing jointly, 2 children, paid every two weeks (26 paychecks). Arizona taxable income is $81,300 and the state tax is $1,783, an effective 1.485% of gross pay. The 6% 401(k) deferral and the $31,500 joint standard deduction lower Arizona taxable income, and the two $125 dependent credits come straight off the tax.
Withholding is a percentage you choose
Arizona does not use withholding tables like most states. On Form A-4 you pick a rate of 0.5%, 1.0%, 1.5%, 2.0%, 2.5%, 3.0% or 3.5% of your gross taxable wages, and you can add an extra fixed amount. If you never hand in an A-4, your employer withholds 2.0%. You may elect 0% only if you expect to owe no Arizona tax, and that election must be renewed each year. Use the effective state rate this calculator shows to pick the closest percentage.
Standard deduction now follows the federal amount
After vetoing two earlier bills, Governor Hobbs signed H.B. 4168 on June 13, 2026. It updates Arizona’s tax code to the federal Internal Revenue Code as of January 1, 2026 and raises the standard deduction to the federal 2025 amounts, back to the 2025 tax year: $15,750 for single and separate filers, $23,625 for heads of household and $31,500 for joint filers. These are adjusted for inflation each year. From 2026, people who take the standard deduction can also add charitable gifts of up to $1,000 ($2,000 joint).
Dependent credit: $125 per child
From 2026 Arizona gives a credit of $125 for each dependent under 17 (up from $100) and $25 for each older dependent, taken straight off the tax. The credit shrinks by 5% for each $1,000 of federal adjusted gross income above $200,000 ($400,000 joint), so it is gone at $220,000 ($420,000 joint). This calculator gives the full $125 for each child you enter, so very high earners may see slightly less tax here than they owe.
Nonresidents and local taxes
No Arizona city or county taxes wages, including Phoenix and Tucson. Arizona has no standard reciprocal agreement, but residents of California, Indiana, Oregon and Virginia who work in Arizona can file Form WEC to stop Arizona withholding, because they get a credit for tax paid to their home state. They may still need to file an Arizona nonresident return. See the California and New Mexico pages for neighbors.
Arizona vs. neighboring states
Take-home pay on a $75,000 salary, single, no pre-tax deductions and no local tax:
| State | Income tax | State tax + programs | Take-home |
|---|---|---|---|
| Arizona | Flat 2.5% | $1,481 | $60,111 |
| California | 1% to 13.3% (10 brackets) | $3,750 | $57,843 |
| Nevada | None on wages | $0 | $61,593 |
| Utah | Flat 4.45% | $3,110 | $58,483 |
| Colorado | Flat 4.4% | $2,922 | $58,671 |
| New Mexico | 1.5% to 5.9% (6 brackets) | $2,359 | $59,233 |
Where you work and where you live can both matter. See paycheck calculators for every state for the full comparison.