Take-home pay in Arizona: federal, state and FICA explained
How federal income tax, Arizona state tax and FICA come out of each paycheck, with an example for a biweekly pay schedule.
Key facts
| Place | Arizona |
|---|---|
| Sales tax | State sales tax |
| Standard rate on file | 5.6% |
| Multiply net price by | 1.056 |
| Tax share of a gross price | 5.3% |
| Currency | USD |
The three main deductions
Every paycheck in Arizona has federal income tax withholding and FICA (6.2% Social Security up to the wage base plus 1.45% Medicare). State income tax depends on the state; the calculator starts with 2.5% for Arizona as a planning estimate.
Worked example
Here is the calculation with sample figures. Change any number in the Arizona Paycheck Calculator to run your own.
| Gross annual salary | $90,000.00 |
| Pay periods per year | 26 |
| Federal rate (%) | 12% |
| State rate (%) | 2.5% |
| Gross amount | $3,461.54 |
|---|---|
| Federal tax | $415.38 |
| State tax | $86.54 |
| Social Security and Medicare | $264.81 |
| Net per paycheck | $2,694.81 |
Pre-tax deductions
401(k) contributions, health premiums and HSA contributions taken pre-tax reduce taxable wages, so your real withholding may be lower than this simple estimate.
Quick reference at 5.6%
Common amounts in Arizona, worked both ways: adding tax to a net price, and extracting it from a price that already includes tax.
| Amount | Tax on net amount | Gross (net + tax) | Net if amount includes tax |
|---|---|---|---|
| $10.00 | $0.56 | $10.56 | $9.47 |
| $50.00 | $2.80 | $52.80 | $47.35 |
| $100.00 | $5.60 | $105.60 | $94.70 |
| $250.00 | $14.00 | $264.00 | $236.74 |
| $500.00 | $28.00 | $528.00 | $473.48 |
| $1,000.00 | $56.00 | $1,056.00 | $946.97 |
| $5,000.00 | $280.00 | $5,280.00 | $4,734.85 |
How Arizona compares
Standard rates on file for other states. A difference of a few points matters most on high-value purchases and on cross-border sales.
| Place | Rate on file | Compared with 5.6% |
|---|---|---|
| Alabama | 4% | lower |
| Alaska | 0% | lower |
| Arkansas | 6.5% | higher |
| California | 7.25% | higher |
| Colorado | 2.9% | lower |
Using the calculator step by step
- Open the Arizona Paycheck Calculator.
- Type your figures into the numbered lines. Results update as you type.
- Check the rate field. It starts at 5.6%; change it if a reduced rate, local surcharge or exemption applies to you.
- Read the result on the receipt panel, and use the formula shown under it if you need to explain the figure to a client or colleague.
Key terms
- Zero rate
- A rate of 0% on a taxable supply. Unlike an exemption, the seller can usually still reclaim tax on costs.
- Tax credit
- An amount subtracted directly from the tax bill, worth its full face value.
- Standard rate
- The rate that applies to most goods and services unless a specific reduced rate, zero rate or exemption applies.
- Effective rate
- Total tax divided by total income, the average rate you actually pay.
- Net amount
- The amount before tax is added. On an invoice it is the figure the tax is calculated on.
Common mistakes to avoid
- Using your top federal bracket as the withholding rate.
- Forgetting pre-tax deductions.
Run your own numbers. The Arizona Paycheck Calculator updates as you type and shows the formula it uses.
Frequently asked questions
How much tax comes out of a paycheck in Arizona?
Federal withholding, FICA of 7.65% and any state income tax. The calculator estimates each line.
Does Arizona have a state income tax?
The planning rate used here is 2.5%; check current Arizona rules for your income.
This article is general information for planning, not tax advice. Rates and rules change; confirm with your tax authority or a qualified adviser.