Arizona Withholding Changes 2023
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FAQ
ALL EMPLOYEES - ARIZONA STATE WITHHOLDING HAS BEEN UPDATED TO THE DEFAULT RATE 2.0% Any existing additional dollar amounts an employee had chosen to be withheld will not be changed.
Enter your annual gross taxable wages, the number of paychecks you receive each year, your annual withholding goal, the amount already withheld for this year, the number of paychecks remaining in this year, and select the largest percentage on line 10 that is less than line 9.
The Arizona Department of Revenue has announced that a revised Form A-4 applies effective January 31, 2023, to take into account the new flat tax of 2.5% effective January 1, 2023 under SB 1828.
Changes to the 2023 tax rate structure mean changes to state withholdings from your paychecks. The new default withholding rate for AZ is 2 percent, so now is the time to review if this amount is appropriate for you. If you want to change this percentage, you can do so at any time during the year.