Arizona paycheck guide
How Arizona's flat tax works in 2026
Arizona replaced its graduated brackets with a single 2.5% rate beginning with the 2023 tax year, and that rate continues for 2026. Every dollar of taxable income is taxed the same, whether you earn $30,000 or $250,000, and no Arizona city or county adds an income tax of its own.
Arizona starts from federal adjusted gross income, so traditional 401(k) contributions and payroll HSA deposits lower Arizona taxable income the same way they lower federal. In our estimate a single filer then subtracts a $16,100 standard deduction and a married couple $32,200, the same amounts as the federal return. Arizona has no personal exemption; it offers a dependent tax credit instead.
A large deduction and a low rate keep the effective rate small. It is 1.16% at $30,000, 1.96% at $75,000, and 2.34% at $250,000, and it never quite reaches the 2.5% statutory rate.
Worked example: a $75,000 salary in Arizona
Take $75,000 of wages and subtract the $16,100 standard deduction, leaving $58,900 of Arizona taxable income. At 2.5%, Arizona tax is $1,473, or 1.96% of salary. That is the whole state calculation: no brackets, no exemption phase-outs, no credits in the base case.
The federal return starts from the same $58,900. Ten percent applies to the first $12,400, twelve percent to the next $38,000, and 22% to the final $8,500, for $7,670 of federal income tax. Social Security adds $4,650 and Medicare $1,088. That leaves $60,119 in your pocket over the year, roughly $5,010 per month. The Arizona $75,000 salary page splits it into weekly and biweekly checks.
Because both returns share the same taxable income at this level, a quick check works for most single filers: Arizona tax is about 2.5% of the taxable income line on your federal Form 1040.
Form A-4: withholding by percentage
Arizona does not run your pay through a bracket formula. Form A-4 asks you to pick one percentage from a short list printed on the form, and your employer withholds that share of your gross taxable wages every pay period. You can also add a flat extra dollar amount per check. If you never turn in an A-4, your employer applies a default percentage set by the Arizona Department of Revenue.
The percentage applies to gross pay, but the tax applies only to income above the standard deduction. The right election therefore depends on your salary: Arizona tax equals 1.16% of gross pay at $30,000, 1.96% at $75,000, and 2.34% at $250,000. Choose the listed rate closest to your own effective rate, and round up if you have side income with nothing withheld.
Revisit your A-4 after a big raise or a second job. A percentage that fit an entry-level salary under-withholds at six figures, while one chosen for a high salary over-withholds after a pay cut and turns into a refund you waited a year for.
Cross-border commutes, remote work, and the rest of your paycheck
Phoenix, Tucson, Mesa, and Flagstaff paychecks all match the statewide figures, since Arizona has no local income taxes and no state disability or paid family leave deduction. Beyond the 2.5% tax, your stub shows only federal income tax, Social Security, and Medicare.
Arizona has no reciprocity agreements with its neighbors. If you live in Arizona and work in California, both states can tax those wages; one of them credits the other's tax, so you end up paying roughly the higher of the two bills, which is usually California's. Nevada residents who cross into Bullhead City or Kingman for work owe Arizona tax on those wages.
If you live in Arizona and work remotely for an employer elsewhere, Arizona taxes that pay. When the employer is not set up to withhold Arizona tax, make quarterly payments with Form 140ES to avoid an underpayment penalty.
How Arizona compares with its neighbors
At $75,000 a single Arizona worker keeps $60,119, 12th among the 50 states and DC, and the state holds 11th place at $150,000. Nevada, with no income tax, leaves $1,473 more. Every other neighbor takes more than Arizona: New Mexico's brackets leave $886 less, Colorado's flat 4.4% $1,119 less, California $1,192 less, and Utah's flat 4.45% $1,630 less.
California is the comparison most Arizona movers make, and the gap widens with pay because California's rates climb toward 13.3% while Arizona's stays at 2.5%. See Arizona vs California and Arizona vs Nevada for side-by-side numbers.
What to expect at your income
Earning under $50,000
Below $50,000 Arizona tax is small because the $16,100 standard deduction shelters a large share of pay. A single filer earning $30,000 owes $348 to the state, 1.16% of salary, and takes home $25,937. At $50,000 the state bill is $848 and take-home is $41,507, or $3,459 a month. A full-time job at $20 an hour leaves $34,968 after $638 of Arizona tax. Pick a low A-4 percentage, since the state takes well under 2.5% of gross pay at this level.
Earning $50,000 to $150,000
In this range Arizona takes 2.5% of every extra dollar, small next to the 22% federal rate. At $100,000 a single filer pays $2,098 to Arizona and takes home $77,082, about $6,424 a month. A married couple on one $100,000 salary pays $1,695 and keeps $83,015. Traditional 401(k) contributions reduce both returns, saving roughly a quarter of each dollar contributed at $100,000. Check that your A-4 percentage still fits after each raise.
Earning over $150,000
Above $150,000 Arizona's flat rate becomes one of its biggest advantages, since neighboring California's graduated rates keep climbing toward 13.3%. A single filer pays $3,348 to Arizona at $150,000 and $5,848 at $250,000, an effective rate of 2.34%, and takes home $177,334, about $14,778 a month. Even here the state takes less than 2.5% of gross pay, so an A-4 election above your effective rate just becomes a refund; use the extra-amount line for investment income instead.
Arizona paycheck tips
Match your A-4 to your effective rate
The A-4 percentage applies to gross pay. Pick the listed rate closest to your effective Arizona rate (1.96% at $75,000) instead of the 2.5% statutory rate.
Do not rely on the default
If you skip Form A-4, your employer uses a state default percentage that may not match your bill. File the form when you start a job.
Use the extra-amount line for side income
Freelance or rental income has no Arizona withholding. Add a flat dollar amount per paycheck on A-4, or pay quarterly with Form 140ES.
Claim the dependent credit at filing
Arizona has no personal exemption but gives a credit for each dependent. It lowers your bill on the return, so factor it in when choosing an A-4 percentage.
Compare the full move, not just the rate
Use the relocation calculator to see how Arizona's 2.5% rate stacks up against a move from California or Colorado at your salary.
Common mistakes
Choosing 2.5% on Form A-4 by reflex
Arizona's 2.5% rate applies after the standard deduction, but the A-4 percentage applies to gross pay. Electing the statutory rate over-withholds for almost every wage earner.
Assuming a Nevada address avoids Arizona tax
Arizona taxes wages earned in Arizona. A Nevada resident working in Kingman or Lake Havasu City owes Arizona tax on that pay.
Leaving an old A-4 in place after a raise
A low percentage chosen early in your career can leave you short at filing time once your salary climbs. Recheck the form after every significant raise.
Moving to or from Arizona
Moving to Arizona
Moving to Arizona from California raises take-home pay by $1,192 at $75,000, and from Utah by $1,630. Coming from Nevada, you start paying state income tax: $1,473 at that salary. Arizona has no city income taxes, so the statewide figure applies whether you settle in Phoenix, Tucson, or Flagstaff. Turn in Form A-4 on your first day so your employer does not fall back on the default percentage.
Leaving Arizona
Leaving Arizona for Nevada saves the $1,473 a $75,000 earner pays the state. Most other moves cost more: New Mexico by $886, Colorado by $1,119, California by $1,192, and Utah by $1,630 at that salary, with the gap growing at higher pay. Arizona taxes you as a part-year resident on income earned while you lived there, so expect to file an Arizona return for the year you move.