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How to Calculate 2025 Arizona State Income Tax by Using State Income Tax Table

1. Find your income exemptions

2. Find your pretax deductions, including 401K, flexible account contributions ...

3. Find your gross income

4. Check the 2025 Arizona state tax rate and the rules to calculate state income tax

5. Calculate your state income tax step by step

6. If you want to simplify payroll tax calculations, you can download ezPaycheck payroll software, which can calculate federal tax, state tax, Medicare tax, Social Security Tax and other taxes for you automatically. You can try it free for 30 days, with no obligation and no credt card needed.

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Arizona State Tax Tables

Tax rate used in calculating Arizona state tax for year 2025

State Abbreviation:

AZ

State Tax Withholding State Code:

04

Basis For Withholding:

>Based on state taxable wages<

Acceptable Exemption Form:

A-4

Acceptable Exemption Data:

>0.5, 1.0, 1.5, 2.0, 2.5, 3.0, 3.5<

TSP Deferred:

No

Special Coding:

Arizona state tax is based on a percentage of the >Arizona State taxable wages.<
Determine the Total Number Of Allowances field as follows:
<When a Form A-4 has not been filed, or an invalid status is found for an employee on the database, the employee's taxes will automatically be withheld at the higher 2.7%, regardless of his/her annual income. In order to elect a percentage less than or greater than 2.7%, employees must submit a Form A-4<. The employee can submit a Form A-4 for a minimum withholding of >1.3%< of the amount withheld for >state< income tax, if the annual wages are less than $15,000, or >1.8%< of the amount withheld for >state< income tax, if the annual wages are greater than or equal to $15,000. An employee required to have >1.3%< deducted may elect to increase this rate to >1.8%, 2.7%, 3.6%, 4.2%, or 5.1%< by submitting a Form A-4. An employee required to have >1.8%< may elect to increase this rate to >2.7%, 3.6%, 4.2%, or 5.1%.<by submitting a Form A-4.
The old rates will convert to the new Arizona state rates. Employees with an exempt status will remain the same.

Note
: Do not enter the decimal point when entering the percentage in the Total Number Of Allowances Claimed field. For Example: To enter >1.3< percent, type >013<.
If Block 3 is checked on Form A-4, enter 0NL. No tax will be withheld due to total exemption eligibility.

Additional Information:

None
Withholding Formula >(Arizona Effective 2025)<
  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in Step 1.
  3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.<
  4. Multiply the biweekly Arizona state taxable wages by 26 to obtain the annual Arizoona State tax wages.
  5. Determine the annual Arizona income tax withholding by applying the following guideline.