About the Arizona Paycheck Calculator

Arizona uses a flat 2.5% state income tax — the lowest among states with an income tax. This calculator applies Arizona's actual flat rate alongside federal income tax, Social Security, and Medicare to give you an accurate take-home pay estimate for Arizona workers.

Arizona's state income tax is computed after deducting Arizona's standard deduction ($2,500 single / $7,500 married) and personal exemption ($1,500 single / $3,000 married). The top 5% rate kicks in on income above $3,000 for single filers and $6,000 for married filers — meaning most Arizona workers pay an effective rate close to 5% on the majority of their income.

Note: Several Arizona cities including Birmingham and Gadsden impose local occupational taxes (1–2%) not included in this calculator. Jefferson County also has a 1% occupational tax. Check with your employer for local withholding amounts. These results are bracket-based estimates only.

📚 Sources & Last Updated

Last updated: April 2026 · Tax year: 2026

How the Tax Formula Works

This calculator uses a bracket-based approach — the same method used to compute annual tax liability — divided by your pay periods. It is an estimate, not a payroll withholding calculation (which uses W-4 inputs and IRS Publication 15-T procedures).

1Gross Pay = Hourly Rate × Hours OR Annual Salary ÷ Pay Periods
2Federal Taxable Income = Annual Gross − Standard Deduction (2025: $15,000 single / $30,000 married)
3Federal Income Tax = Apply 2026 IRS brackets (10%→37%) ÷ pay periods
4Social Security = Gross × 6.2% (stops at $184,500 annual wages)
5Medicare = Gross × 1.45% (+0.9% on wages over $200K single)
6Arizona 2026: flat 2.5% rate applied to (annual gross − $16,100 standard deduction single / $32,200 married, matching federal) — source: Arizona Department of Revenue 2026 schedule
7Net Take Home = Gross − Fed Tax − SS − Medicare − State Tax

Results are bracket-based estimates. Actual paycheck withholding is determined by your W-4 form, pre-tax deductions, and employer payroll procedures. Use these results for planning and budgeting — not as a substitute for your actual pay stub.

Frequently Asked Questions — Arizona Paycheck Calculator

Arizona has a flat 2.5% income tax rate for 2026 — the lowest among states with an income tax. This single rate applies to all taxable income regardless of filing status or income level. Arizona uses the federal standard deduction ($16,100 single / $32,200 married for 2026), so your federal taxable income is generally also your Arizona taxable income before applying the 2.5% rate.
A single Arizona filer earning $60,000 can expect approximately $47,500–$48,500 in annual take-home pay. Federal income tax (~$5,200 after the $16,100 federal standard deduction), Arizona state tax (~$1,098 at 2.5% flat rate), Social Security ($3,720), and Medicare ($870) are deducted. Arizona has no local income taxes.
No. Arizona does not impose any local or municipal income taxes on wages. The 2.5% flat state rate is the only income tax you owe on Arizona wages — there are no city or county income tax surcharges. This makes Arizona tax calculation straightforward compared to states like Ohio or Pennsylvania, where most municipalities add local income taxes on top of the state rate.
Arizona is generally retirement-friendly. Social Security benefits are fully exempt from Arizona state income tax. Military retirement pay is fully exempt. Other retirement income such as pensions, IRA distributions, and 401(k) withdrawals is taxable at the 2.5% flat rate. For 2026, Arizona is updating its treatment of veterans' pensions and Social Security income under SB1749.
Arizona conforms to the federal standard deduction. For 2026, that is $16,100 for single filers, $32,200 for married filing jointly, and $24,150 for head of household. Arizona does not have a separate state-level standard deduction — your federal taxable income flows through to your Arizona return.
Arizona employers use Form A-4 (Employee's Arizona Withholding Election) and Arizona Department of Revenue withholding tables to calculate state income tax each pay period. Employees select a flat withholding percentage (0.5%, 1.0%, 1.5%, 2.0%, 2.5%, or 3.0%) rather than allowances. If no A-4 is filed, employers withhold at the default rate. Official source: azdor.gov
Arizona's top (and only) income tax rate is 2.5% flat — the lowest individual income tax rate of any state with a state income tax. There is no higher bracket regardless of income level. This rate applies to all Arizona taxable income after deductions. Arizona enacted this flat rate under HB 2871 (2022), replacing a prior progressive system.
Arizona's 2.5% flat rate is the lowest among income-tax states — significantly below Nevada and Wyoming (which have no income tax but also no wage earners in this context). Neighboring California taxes income at 1%–13.3%, making Arizona far more favorable for high earners. Colorado is 4.4%, Utah is 4.65%, and New Mexico is around 4.9%. For someone earning $100,000, Arizona saves thousands annually compared to California.

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