Arizona Salary Paycheck Calculator

Use Arizona Paycheck Calculator to estimate net or “take home” pay for salaried employees. Simply input salary details, benefits and deductions, and any other necessary information as prompted below, and let our tool handle the rest.

What Are Payroll Taxes?

Payroll taxes withheld from employee paychecks fund Social Security and Medicare, to which the employer also makes payroll tax contributions.

The Social Security tax is paid by both the employee and the employer at a rate of 6.2% of the employee’s wages. The Medicare tax is also paid by both employee and employer, but at a rate of 1.45%.

Employers are also required to pay taxes under the Federal Unemployment Tax Act (FUTA) and the State Unemployment Tax Act (SUTA). The employer must also collect federal income tax from employee paychecks, and pay that amount to the IRS. The rate is determined by the employee’s tax bracket.

Each state also has specific state payroll taxes that must be withheld and paid.

Arizona Payroll Taxes

In addition to Social Security and Medicare, Arizona assesses state income tax and state unemployment taxes, as per SUTA.  

State Income Tax

The state of Arizona has a progressive income tax system with four distinct brackets. Rates range from 2.59% to 4.50%. 

• Single (or Married Filing Separately)
  • $0 to $27,808 2.59%
  • Over $27,808 to $55,615 3.34%
  • Over $55,615 to $166,843 4.17%
  • Over $166,843 to $250,000 4.50%
  • Over $250,000 1.00%
    
• Married Filing Jointly
  • $0 to $55,615 2.59%
  • Over $55,615 to $111,229 3.34%
  • Over $111,229 to $333,684 4.17%
  • Over $333,684 to $500,000 4.50%
  • Over $500,000 1.00%

Employers are required to withhold state income taxes from their employees’ wages. 

State Unemployment Tax (SUTA)

State unemployment tax is an employer-paid tax and not withheld from employees. 

SUTA tax rates in Arizona range from 0.08% to 20.93% for established businesses. The rate for new businesses is 2%. You’re considered a new business if you’ve been operating for two years or less.

The current SUTA taxable wage base in Arizona is $7,000. 

Paying Payroll Taxes

Just as you need an EIN to pay federal payroll taxes, in Arizona you’ll need to register for state withholdings. Find the relevant forms here. You generally have to pay your taxes quarterly, unless your tax liability is less than $200 for the year. Then you’ll pay annually. 

You’ll pay SUTA taxes through the Arizona Department of Economic Security. Payments are quarterly and you can find rates information here. Check with your local government about any local payroll taxes. 

Using a Payroll Tax Service

In Arizona, payroll and payroll taxes come with countless laws and restrictions, which is why many business owners turn to a payroll service provider to ensure their business remains fully compliant. It’s usually less expensive than creating a new staff position for managing payroll, and relatively easy.  

You’ll just send over your digital timesheets and relevant information and the service provider will take care of the calculations, payments and taxes, freeing you up to focus on growing your business. 

We highly recommend hiring a payroll service — as a busy entrepreneur, you won’t regret it!