How this calculator works
Like our other paycheck calculators, this estimates federal tax and FICA the same way regardless of state. On top of that, it applies Arizona’s flat 2.5% state income tax to your wages after subtracting Arizona’s 2026 standard deduction. Arizona taxable income starts from your federal adjusted gross income, so it already excludes your 401(k) contributions and pre-tax health premiums, the same wage basis Illinois and North Carolina use. Arizona has no state disability insurance tax, no employee-paid unemployment tax, and no local or municipal income tax anywhere in the state, so this calculator’s state-level estimate is already the full Arizona picture.
Arizona’s standard deduction is not a fixed Arizona-only dollar figure: state law ties it to the federal standard deduction, adjusted for inflation the same way the federal amount is. In every year on record, Arizona’s published amount has matched the federal figure exactly, so this calculator uses the confirmed 2026 federal standard deduction ($16,100 single, $32,200 joint) for Arizona too.
The formula
(federal tax, FICA, and net-pay assembly are identical to the Texas calculator) azWages = grossWages − pretaxHealth − 401(k) contribution standardDeduction = $16,100 (single) or $32,200 (joint) azTaxable = max(0, azWages − standardDeduction) azIncomeTax = azTaxable x 0.025 stateTax = azIncomeTax
Worked example
A single filer earning $60,000/year, paid biweekly, with no 401(k) or extra deductions:
- FICA: $4,590.00/year (same as any state)
- Federal tax: $5,020.00/year (same as any state)
- Arizona standard deduction: $16,100.00 (2026, single)
- Arizona taxable wages: $60,000 − $16,100 = $43,900.00
- Arizona income tax: $43,900 x 2.5% = $1,097.50/year
- Net pay: $60,000 − $4,590 − $5,020 − $1,097.50 = $49,292.50/year, or $1,895.87 per biweekly paycheck
Now compare that to the same salary with a 10% 401(k) contribution ($8,000/year deferred). Arizona taxable wages drop to $80,000 − $8,000 = $72,000, then $72,000 − $16,100 standard deduction = $55,900.00, so Arizona income tax is $55,900 x 2.5% = $1,397.50/year. Like Illinois and North Carolina, Arizona follows the federal exclusion for 401(k) deferrals, so the contribution lowers both your federal and your Arizona tax bill, unlike Pennsylvania, which keeps taxing the full $80,000.
We used SmartAsset’s Arizona Paycheck Calculator to cross-check the rate and local-tax picture for the same salary and frequency (accessed 2026-08-23, zip code 85001): its overview panel states “Arizona imposes a flat income tax rate of 2.50% and has no local income tax,” confirming both figures used above. SmartAsset’s own paycheck line uses Arizona’s Form A-4 percentage-election withholding method rather than an annual-liability calculation, so its per-paycheck state tax figure is not directly comparable to this calculator’s, the same annual-liability-vs-per-paycheck-withholding difference described on our Texas calculator.
Frequently asked questions (FAQ)
What is Arizona's 2026 state income tax rate?
A flat 2.5% on taxable income, the same rate for every filer regardless of income or filing status. Arizona moved to this single flat rate for tax year 2023, replacing a two-bracket system, and it has been unchanged since. There are no brackets, so the rate applies uniformly once your wages exceed the standard deduction.
Does Arizona have a standard deduction?
Yes: $16,100 for single filers and married filing separately, or $32,200 for married filing jointly, for tax year 2026. Arizona law ties this amount to the federal standard deduction, adjusted for inflation the same way the federal amount is, so it has matched the federal figure exactly in every year since 2019.
Does contributing to a 401(k) lower my Arizona state tax the way it lowers my federal tax?
Yes. Arizona taxable income is computed starting from your federal adjusted gross income, which already excludes 401(k) elective deferrals, so Arizona taxes the same reduced wage figure federal tax does. This is the same treatment Illinois and North Carolina use, and the opposite of Pennsylvania, which taxes 401(k) contributions in full when you make them.
Does Arizona have a state disability insurance (SDI) tax or an employee-paid unemployment tax on my paycheck?
No. Arizona has no State Disability Insurance program (unlike California, New Jersey, New York, and a few other states), and Arizona unemployment insurance is funded entirely by employer contributions. Arizona law specifically bars employers from taking unemployment tax out of employee pay, so there is no second state payroll-tax line on an Arizona paycheck.
Does Phoenix, Tucson, or any other Arizona city have its own local income tax?
No. Arizona does not allow any city or county to levy a personal income tax, so there is no municipal withholding to add anywhere in the state. Arizona cities fund themselves mainly through sales tax instead. This calculator's state-level estimate is already the complete Arizona income-tax picture.
Why is my actual Arizona paycheck different from this calculator's estimate?
This calculator estimates your annual state and federal tax liability and divides it evenly across your pay periods. Your employer instead withholds Arizona tax using a flat percentage you elect on Form A-4 (0.5% to 3.5% of gross wages), a different mechanism than an annual-liability split, so the two figures rarely land on the exact same cent.