Estimate your take-home pay after federal income tax, Arizona's flat 2.5% state tax, Social Security, and Medicare — salary or hourly.
Results are estimates using a simplified annualized method. Actual withholding depends on your W-4, A-4, and employer payroll system. Arizona Department of Revenue is the authoritative source.
Arizona is one of the most paycheck-friendly states in the country. There is no local or city income tax anywhere in Arizona, and since tax year 2023 the entire state uses a single flat income tax rate. Understanding each line on your pay stub helps you confirm it is correct and keep more of what you earn.
Arizona scrapped its old graduated brackets (which ran from 2.59% up to 4.5%) and now applies a single flat 2.5% rate to your Arizona taxable income — your wages minus the Arizona standard deduction, which matches the federal standard deduction. A worker earning $60,000 pays roughly $1,100 in Arizona income tax for the year, an effective rate well under 2%.
| Tax Year | Arizona Income Tax Structure | Rate |
|---|---|---|
| 2021 and earlier | 4 brackets | 2.59% – 4.50% |
| 2022 | Transitional 2 brackets | 2.55% – 2.98% |
| 2023 onward | Single flat rate | 2.50% |
| 2026 | Single flat rate | 2.50% |
Arizona does not use withholding allowances. Instead you file Form A-4 and elect a flat percentage of your gross taxable wages for your employer to withhold. If you never file an A-4, the law sets your default at 2.0%. Because the true tax is 2.5% on income after the standard deduction, the 2.0% election lands close to accurate for most full-year employees — but if you have little other income you may slightly over-withhold, and if you have significant outside income you may want a higher election.
| A-4 Election | Withheld From | Best For |
|---|---|---|
| 0.5% | Gross taxable wages | Low income / large deductions |
| 1.0% | Gross taxable wages | Lower earners |
| 1.5% | Gross taxable wages | Moderate earners |
| 2.0% (default) | Gross taxable wages | Most full-year employees |
| 2.5% | Gross taxable wages | Matches the flat tax exactly |
| 3.0% – 3.5% | Gross taxable wages | Significant outside income |
Federal income tax is withheld based on your W-4, filing status, and the IRS tables. For tax year 2026 the standard deduction is $16,100 for single filers, $32,200 for married filing jointly, and $24,150 for head of household. Federal tax uses seven brackets from 10% to 37%.
Every employee pays 6.2% Social Security tax on wages up to the 2026 wage base of $184,500, and 1.45% Medicare tax on all wages. Your employer matches both. High earners pay an extra 0.9% Medicare surtax on wages above $200,000.
Arizona's median household income is $81,486 according to the U.S. Census Bureau. A single filer earning the Arizona median takes home roughly $62,000–$64,000 per year after federal tax, the 2.5% state tax, and FICA — before any pre-tax benefits, which push take-home higher.
Arizona's flat 2.5% rate makes it one of the best states for take-home pay among states that tax income.
| State | State Income Tax | Local Income Tax |
|---|---|---|
| Arizona | 2.5% flat | None |
| Nevada | None | None |
| California | 1% – 13.3% (graduated) | None |
| Colorado | 4.40% flat | Some cities (occupational) |
| New Mexico | 1.5% – 5.9% (graduated) | None |
| Utah | 4.55% flat | None |