TakeHomeTax

Employer Cost Calculator for Arizona

Arizona charges 2.5% flat state income tax. Use the employer cost calculator pre-loaded with Arizona rates.

Open Employer Cost Calculator

Arizona Tax Overview

State Tax Rate
2.5%
2.5% flat
Tax Structure
Flat Rate
No local income tax
Median Income
$58,000
Household, Arizona
Cost of Living
97
Near Avg (100 = avg)

Why Use the Employer Cost Calculator in Arizona?

Employers in Arizona must withhold and remit the flat 2.5% state income tax, plus handle their share of FICA, FUTA, and Arizona's state unemployment insurance. The total cost to employ someone at a $75,000 salary in Arizona is typically 10-15% above the gross salary, covering the employer's payroll tax share, SUI, workers' comp, and benefits. This calculator breaks down the full employer cost with Arizona's specific tax rates.

Arizona State Tax Details

Arizona levies a flat 2.5% state income tax on all taxable income regardless of how much you earn. This makes tax planning straightforward: for every additional dollar you earn, 2.5 cents goes to Arizona. Arizona does not impose local income taxes, so the 2.5% flat rate is the only state-level income tax you owe.

Take-Home Pay in Arizona at Common Salary Levels

The table below shows what you actually keep at five salary levels in Arizona, accounting for federal tax, FICA, and Arizona's flat 2.5% state tax.

Gross SalaryFederal TaxFICAState TaxTotal TaxTake-HomeEff. Rate
$50,000$3,820$3,825$1,250$8,895$41,10517.8%
$75,000$7,725$5,738$1,875$15,338$59,66320.4%
$100,000$13,225$7,650$2,500$23,375$76,62523.4%
$150,000$24,774$11,475$3,750$39,999$110,00126.7%
$200,000$36,774$14,339$5,000$56,113$143,88728.1%

Employer Cost in Nearby West States

See how Arizona compares to other West states. Each link takes you to the employer cost calculator landing page for that state.

Alaska0% tax
$79,125+$2,500
Nevada0% tax
$79,125+$2,500
Washington0% tax
$79,125+$2,500
Wyoming0% tax
$79,125+$2,500
Montana5.65%
$75,453$1,173

Explore Arizona in Depth

For a comprehensive breakdown of Arizonas tax structure, salary comparisons, cost-of-living analysis, and more, visit the full Arizona take-home pay page.

The Take-Home Tax Guide
Weekly tips on reducing your tax burden, state tax changes, and salary negotiation strategies. Free.