December, 17th 2024
Every state in the country has a unique paradigm for income tax and state unemployment insurance rates. Located below are relevant rates and complance information by state.
Employers must also adhere to federal income tax withholding rules as well. More information can be found here about federal rates .
Alternatively, employers can automatically calculate payroll witholding information by using ezPaycheck.
State Abbreviation | AZ |
---|---|
State Tax Withholding State Code | 04 |
Acceptable Exemption Form | A-4 |
Basis For Withholding | State Exemptions |
Acceptable Exemption Data | 0.5, 1.0, 1.5, 2.0, 2.5, 3.0, 3.5 |
TSP Deferred | Yes |
Special Coding | |
Additional Information | None |
Arizona state tax is based on a percentage of the Arizona State taxable wages .
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 rate of 2.7% , regardless of annual income. To elect a percentage lower or higher 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 $15,000 or more.
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 . Similarly, an employee required to have 1.8% deducted may choose 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% , type 013 .
If Block 3 is checked on Form A-4 , enter 0NL . No tax will be withheld due to total exemption eligibility.
Want to calculate in a easier way? Learn how to calculate Arizona taxes via ezPaycheck below.
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