What percentage should I withhold for Arizona taxes?
Pick the lowest A-4 percentage that's at least your Arizona tax as a share of your wages. For a single filer on $60,000 that's about 1.8%, so 2.0% covers it; on $150,000 it's 2.2%, so 2.5%. A married couple with one $60,000 income needs only 1.2% — 1.5%.
Why the A-4 isn't just 2.5%
Arizona's income tax is a flat 2.5%, but only on income above your standard deduction. The A-4 percentage, though, is taken from all your gross taxable wages. So withholding the full 2.5% over-withholds for most people — your real tax as a share of wages is lower. The choices are 0.5%, 1.0%, 1.5%, 2.0%, 2.5%, 3.0%, 3.5%, plus 0% if you expect to owe no Arizona tax. With no A-4 on file, your employer must use 2.0%.
A-4 percentage by salary
Single (or married filing separately)
| Wages | Arizona tax (est.) | As % of wages | A-4 choice that covers it | At the 2.0% default |
|---|---|---|---|---|
| $25,000 | $231 | 0.92% | 1.0% | $269 refund |
| $40,000 | $606 | 1.52% | 2.0% | $194 refund |
| $60,000 | $1,106 | 1.84% | 2.0% | $94 refund |
| $80,000 | $1,606 | 2.01% | 2.5% | $6 owed |
| $100,000 | $2,106 | 2.11% | 2.5% | $106 owed |
| $150,000 | $3,356 | 2.24% | 2.5% | $356 owed |
| $250,000 | $5,856 | 2.34% | 2.5% | $856 owed |
Married filing jointly, one income
| Wages | Arizona tax (est.) | As % of wages | A-4 choice that covers it | At the 2.0% default |
|---|---|---|---|---|
| $25,000 | $0 | 0.00% | 0% (no tax) | $500 refund |
| $40,000 | $213 | 0.53% | 1.0% | $588 refund |
| $60,000 | $713 | 1.19% | 1.5% | $488 refund |
| $80,000 | $1,213 | 1.52% | 2.0% | $388 refund |
| $100,000 | $1,713 | 1.71% | 2.0% | $288 refund |
| $150,000 | $2,963 | 1.98% | 2.0% | $38 refund |
| $250,000 | $5,463 | 2.19% | 2.5% | $463 owed |
Estimate: 2.5% of wages above the 2025 Arizona standard deduction ($15,750 single, $31,500 joint) — the latest amounts the Department of Revenue has published; 2026 amounts may differ. Assumes wages are your only income, no pre-tax 401(k) or health deductions, and no tax credits. Two incomes on a joint return: add them together, work out the share of the total, and both of you pick that percentage.
Fine-tuning
- Owe every April? Move up one step, or add a fixed extra dollar amount per paycheck on the A-4.
- Big refund? Move down a step to keep more of each paycheck.
- Pre-tax 401(k) or health insurance lower both your tax and the wages the percentage is taken from, so the same choice usually still works.
- You can file a new A-4 with your employer any time; new employees fill one in within 5 days of starting.
See the effect on your paycheck in the Arizona paycheck calculator — pick your A-4 percentage there.
Sources
- Arizona Department of Revenue — Form A-4, Employee's Arizona Withholding Election (2026) — 0.5%–3.5% choices; extra amount; 0% election; 2.0% if no A-4; gross taxable wages = W-2 box 1
- Arizona Department of Revenue — Individual income tax highlights — 2.5% for all income levels; 2025 standard deduction $15,750 single or married filing separately, $23,625 head of household, $31,500 married filing jointly (checked 2026-09-27)
- Arizona Department of Revenue — Individual Income Update, February 2026 — 2025 standard deduction amounts; may be subject to change pending legislative approval
- Arizona Department of Revenue — Withholding tax (employers) — withholding is a percentage of gross taxable wages (federal definition, IRC § 3401), so bonuses are withheld at the A-4 percentage; 0.5%–3.5% choices
- Arizona Department of Revenue — Employer's Instructions for Form A-4 (2026) — default 2.0%; new employees complete A-4 within 5 days; gross taxable wages follow the federal definition
- Arizona Department of Revenue — Withholding Calculations — 2.5% tax rate for 2023 and beyond; worked example $2,000 × 2.5% = $50.00 + $4.55 extra
Questions
What percentage should I withhold for Arizona taxes?
The lowest A-4 choice at or above your Arizona tax as a share of wages. For a single filer on $60,000, about 1.8% — so 2.0%.
What is the Arizona withholding default?
2.0% of gross taxable wages, if you don't give your employer a Form A-4.
Should I choose 2.5% on my A-4?
For a single filer, 2.0% covers the estimated tax on wages up to about $78,750; above that, 2.5% is the choice that covers it (joint, one income: about $157,500). 2.5% never under-withholds on wages alone.
Can I choose 0% on the Arizona A-4?
Only if you expect to owe no Arizona income tax for the year — the form asks you to certify it.