Get Arizona Withholding Tax

Effective January 31, 2023, employers must provide Arizona employees with an updated Form A-4, which reflects the State's lower individual income tax rates. Arizona employers are required to make Arizona Form A-4 available to employees at all times and to inform them of Arizona's withholding election options.

As of January 1, 2023, the new default withholding rate for the Arizona flat income tax is 2.0%. If employees don't submit an updated Form A-4, employers may withhold a baseline of 2.0% starting in 2023.

PLEASE BE AWARE: To ensure compliance with AZDOR requirements, on 12/30/22, the State will change ALL employee records to the default rate of 2.0%. Any existing additional dollar amounts an employee had chosen to be withheld will not be changed. On 12/30/2022: ALL employees are defaulted to 2.0% rate.

On 12/30/2022: ALL employees are defaulted to 2.0% rate. Any existing additional dollar amounts will not be changed. Beginning 12/31/22: Employees can change their tax withholding from the default 2.0% if they choose to.

As of January 1, 2023, the new default withholding rate for the Arizona flat income tax is 2.0%. If employees don't submit an updated Form A-4, employers may withhold a baseline of 2.0% starting in 2023.

The new flat tax of 2.5% will affect the 2023 tax year – which is filed by April 2024. The tax year 2022 tax table will be posted online in December 2022.

Flat Income Tax Rate For Arizonans As of Jan. 1, 2023, Arizona will implement a new flat tax rate of 2.5 %. State tax rates in Arizona were previously tiered, ranging from 2.59-4.5% based on income. Now, everyone will pay 2.5% across the board.

Electing a Withholding Percentage of Zero If you make this election, your employer will not withhold Arizona income tax from your wages for payroll periods beginning after the date you file the form.