Arizona pay stubs: flat income tax and A-4 withholding choices
Arizona has a flat 2.5% income tax for 2026, and employees choose their withholding percentage on Form A-4. See what an Arizona pay stub includes.
Last reviewed
Rates on this page are for the 2026 tax year and are reviewed every January.
State income tax
For 2026 Arizona has a flat income tax of 2.5% of Arizona taxable income, a rate that has applied since tax year 2023. Withholding works differently here than in most states. Rather than running a formula based on allowances, Arizona asks each employee to choose a percentage of gross taxable wages on Form A-4. The 2026 form offers choices from 0.5% to 3.5% in half-point steps. An employee who expects to owe no Arizona tax for the year can elect a zero rate, and employees can also ask for an extra fixed amount each paycheck.
Because the employee picks the percentage, two people with the same pay can have different Arizona withholding. That is normal, not an error. When a new hire does not turn in an A-4, the employer uses the state's default rate, so collect the form early.
Other state payroll deductions
Arizona has no state disability insurance program, no state paid family leave payroll deduction, and state unemployment insurance is paid by employers. For most workers, the only Arizona line on the stub is state income tax.
Local taxes
Arizona cities and counties do not tax wages, so there is no local income tax line on an Arizona pay stub.
Federal withholding still applies
The federal side of an Arizona pay stub has three standard lines:
- Federal income tax, calculated from the answers on Form W-4.
- Social Security at 6.2%, which stops once year-to-date wages reach the annual Social Security wage base.
- Medicare at 1.45% with no cap, plus 0.9% Additional Medicare Tax on wages over $200,000 for the year.
Creating an Arizona pay stub with PayStubNest
In PayStubNest, select Arizona as the state, then add the pay details: hours for hourly workers or a salary for salaried staff. The exact figures depend on pay, pay frequency, W-4 choices, deductions and year-to-date totals, and PayStubNest calculates all of it automatically, handling the federal and state withholding and carrying year-to-date totals from stub to stub. Check the preview at no cost, and pay only when you are ready to download. Start at /app/new.
Record-keeping tip
Keep a copy of each employee's latest Form A-4 with your payroll records and note the date it took effect. If the withholding percentage changes midyear, that note explains the change on later stubs. Forms and rate details are on the Arizona Department of Revenue website.