Arizona Revocation Trust Az Withholding Tax
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FAQ
The employer should select 2.0% on behalf of the employee. The new default Arizona withholding rate is 2.0%.
Your Arizona Withholding Account Number is the same number as your nine digit (XX-X) Federal Employment Identification Number (EIN).
The employee should complete Form A-4 electing their withholding percentage and return it to the employer. Arizona law requires every employer to withhold Arizona income tax from those employees for services provided within Arizona.
Beginning in 2023, Arizona is doing away with a progressive tax system and instead applying a flat tax rate of 2.5% on taxable income. This tax rate will apply to income earned throughout 2023 that is reported on returns filed in 2024.
How to check withholding. Use the Tax Withholding Estimator on IRS.gov. The Tax Withholding Estimator works for most employees by helping them determine whether they need to give their employer a new Form W-4.