Income Tax Brackets Single Filers Oregon Taxable IncomeRate $4,300 - $10,750 6.75% $10,750 - $125,000 8.75% $125,000+ 9.90%1 more row •
By law, as an employer you must withhold a portion of your employees' wages based on their allowances and send the funds to the Department of Revenue (DOR).
Withholding Percentage Options Keep in mind for tax year 2023 and beyond, the tax rate for Arizona taxable income is 2.5%.
To change the amount of Arizona income tax withheld, an employee must complete Arizona Form A-4 and submit to his or her employer to choose a different withholding percentage. Employees may also request to have an additional amount withheld by their employer.
Withholding Percentage Options Keep in mind for tax year 2023 and beyond, the tax rate for Arizona taxable income is 2.5%.
Overview of Arizona Taxes Arizona imposes a flat income tax rate of 2.50% and has no local income tax.
Social Security income is not taxed. Withdrawals from retirement accounts are fully taxed. Wages are taxed at normal rates, and your marginal state tax rate is 8.75%. Public and private pension income are partially taxed.
If you're claiming exemption from withholding, you must meet one of these requirements: Your wages must be exempt from Oregon taxation, or • You must meet the qualification for having no tax liability.
A property tax exemption is a legislatively approved program that relieves qualified individuals or organizations from all or part of their property taxes. Exemptions can be either full or partial, depending on the program requirements and the extent to which the property is used in a qualifying manner.
Out-of-State Employee Working In Arizona If the employee working in Arizona is not an Arizona resident, withholding of Arizona state income tax is required once the employee has been working in Arizona for 60 days.