Arizona Withholding Calculator
Enter your annual income to see exactly how much each Form A-4 withholding percentage (0.0%, 0.5%, 1.0%, 1.5%, 2.0%, 2.5%, 3.0%, 3.5%) would withhold over a year, and whether it under- or over-withholds compared to Arizona's actual 2.5% flat tax rate.
| A-4 percentage | Withheld per year | vs. actual 2.5% liability |
|---|---|---|
| 0.0% | $0 | Under-withheld by $1,500 |
| 0.5% | $300 | Under-withheld by $1,200 |
| 1.0% | $600 | Under-withheld by $900 |
| 1.5% | $900 | Under-withheld by $600 |
| 2.0%(default) | $1,200 | Under-withheld by $300 |
| 2.5%matches exactly | $1,500 | Breaks even |
| 3.0% | $1,800 | Over-withheld by $300 |
| 3.5% | $2,100 | Over-withheld by $600 |
"Under-withheld" means you may owe that amount when you file; "over-withheld" means you're likely to get it back as a refund. This compares withholding to Arizona's flat 2.5% tax rate on gross wages — it doesn't account for credits, other income, or itemized adjustments on your actual return.
How Much Should I Withhold for Arizona Taxes?
Because Arizona uses one flat 2.5% tax rate for every taxpayer, the percentage that most closely matches your actual liability is the same for everyone: 2.5%, which happens to be one of the eight options on Form A-4. The default rate if you don't file an A-4 is 2.0%, which under-withholds every income level by 0.5 percentage points of gross wages — the table above shows exactly how many dollars that is for your income. Some people deliberately choose a higher percentage as a simple way to build a refund, or a lower one to increase take-home pay during the year; neither is wrong, but this isn't tax advice — consider your full financial picture or talk to a tax professional.
Frequently Asked Questions
How much should I withhold for Arizona taxes?+
Since Arizona has a single flat 2.5% tax rate, choosing 2.5% withholding on Form A-4 will most closely match your actual state tax liability at any income level.
What percentage should I withhold for Arizona taxes?+
2.5% is the percentage that breaks even with Arizona's actual flat tax rate. Percentages below that under-withhold (you may owe at filing); percentages above that over-withhold (you're likely to get a refund).
Is the default Arizona withholding percentage enough?+
The default 2.0% rate under-withholds relative to Arizona's actual 2.5% tax rate at every income level. It won't cause a penalty by itself, but it does mean you may owe Arizona tax when you file rather than break even.
Can I withhold 0% for Arizona taxes?+
Yes, 0.0% is a valid Form A-4 election, meaning no Arizona tax is withheld from your paycheck. You'd still owe Arizona income tax when you file your return, in full, unless you qualify for an exemption.
Related: Arizona Form A-4 Explained · Arizona Income Tax
Tax year 2026 · Data reviewed 2026-08-15 · See methodology and sources. Estimates only — not tax or legal advice.