Arizona State Income Tax Withholding Information
State Abbreviation: |
AZ |
State Tax Withholding State Code: |
04 |
Basis For Withholding: |
Based on state taxable wages |
Acceptable Exemption Form: |
A-4 |
Acceptable Exemption Data: |
0.8, 1.8, 2.7, 3.6, 4.2, 5.1 |
TSP Deferred: |
Yes |
Special Coding: |
Arizona state tax is based on a percentage of the Arizona State taxable wages. Determine the Total Number Of Allowances field as follows: |
Additional Information: |
None |
Additional Resources: |
Withholding Formula (Effective Pay Period 12, 2011)
- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in Step 1.
- Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in Step 2 to obtain the adjusted gross biweekly wages.
- Multiply the biweekly Arizona state taxable wages by 26 to obtain the annual Arizona State tax wages.
- Determine the annual Arizona income tax withholding by applying the following guideline.
- Divide the annual Arizona income tax withholding by 26 to obtain the biweekly Arizona income tax withholding.
Multiply the Arizona State Taxable Wages by: |
0.8% |
1.3%1 |
1.8% |
2.7%2 |
3.6% |
4.2% |
5.1% |
1The $15,000 annual wage threshold has been removed. Employees who have annual wages exceeding $15,000 who are currently claiming the 1.3% tax rate will have an automatic reduction in their state withholding rate from 1.8% to 1.3%. 2The default rate will be 2.7% when a valid Form A-4 is not on file or the employee does not submit one. |