December, 17th 2025
Each state has unique income tax withholding rules. Below are Arizona's 2026 withholding instructions, including allowance calculations, standard deduction adjustments, and the percentage method for determining tax due.
Employers must also adhere to federal income tax withholding rules. More information can be found here about federal rates .
Alternatively, employers can automatically calculate payroll withholding by using ezPaycheck.
| State Abbreviation | AZ |
|---|---|
| State Tax Withholding State Code | 04 |
| Acceptable Exemption Form | A-4 |
| Basis For Withholding | State Exemptions |
| Acceptable Exemption Data | 0.5, 1.0, 1.5, 2.0, 2.5, 3.0, 3.5 |
| TSP Deferred | Yes |
| Additional Information | None |
| Official State Tax Website | Visit Official Website |
For links to official state tax and revenue websites for all 50 states, visit our State and Local Tax Sites page.
Determine if Form A-4 has been filed. If not filed or invalid status found, withhold at default rate of 2.7% regardless of annual income.
If annual wages are less than $15,000, the minimum withholding rate is 1.3% of state taxable wages.
If annual wages are $15,000 or more, the minimum withholding rate is 1.8% of state taxable wages.
Employees may elect to increase their withholding rate. From 1.3%, they may choose: 1.8%, 2.7%, 3.6%, 4.2%, or 5.1%.
Employees with 1.8% minimum may elect to increase to: 2.7%, 3.6%, 4.2%, or 5.1% by submitting Form A-4.
Calculate withholding by multiplying Arizona State taxable wages by the selected percentage rate.
Withholding = Arizona State Taxable Wages × Selected Percentage Rate
Important: When entering percentage in Total Number Of Allowances Claimed field, do not enter the decimal point. For example, to enter 1.3%, type 013.
If Block 3 is checked on Form A-4, enter 0NL. No tax will be withheld due to total exemption eligibility.
Want to calculate in an easier way? Learn how to calculate Arizona taxes via ezPaycheck below.
Learn MoreArizona uses a percentage-based withholding system where employees elect their withholding percentage based on annual wages and Form A-4 elections. Default rate is 2.7% if no form is filed. Minimum rates are 1.3% for wages under $15,000 and 1.8% for wages $15,000 or more. Employees may elect rates: 1.3%, 1.8%, 2.7%, 3.6%, 4.2%, or 5.1%.
Withholding = Arizona State Taxable Wages × Selected Percentage Rate
| Available Withholding Rates |
|---|
| 1.3% |
| 1.8% |
| 2.7% |
| 3.6% |
| 4.2% |
| 5.1% |
ezPaycheck simplifies payroll calculations, including Arizona's withholding rules. Easily compute taxes, generate reports, and print paychecks or tax forms.
We strive to provide accurate and up-to-date Arizona state tax information for 2026. If you notice any discrepancies, errors, or have questions about the tax rates or calculations shown on this page, please contact our support team. We appreciate your feedback and will review and update the information as needed.
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