Paycheck Calculator Arizona - AZ

Income Information

Federal Withholding

State Withholding


Additional Information


Arizona-AZ Paycheck Calculator: Hourly and Salary

The first thing that comes to our mind when listening about Arizona is Grand Canyon. No doubt, it is a marvellous place created by nature. Apart from Grand Canyon, Arizona has plenty of historical landmarks and national parks, making it one of the most beautiful and jaw-dropping states of the United States.

Although this a heavenly state for tourist, but living here permanently, can cost you slightly higher than the average in the United States. But don't worry! To counter the high cost, Arizona State offers minimum wages and average wages higher than the rest of the states in America.

So if you are planning to settle in Arizona or started a new business or a job in this state and trying to calculate the paycheck amount, you would have to pay as an employer or receive as an employee, then you are at the right place.

DrEmployee offers you an amazing Arizona Paycheck Calculator, followed by a comprehensive guide that would help you deduce the Take-Home Pay of an employee instantly.

Arizona Tax Facts:

  • The Minimum Wage in Arizona would be $12 from January 2020 onwards, which is $5 higher than the federal minimum wage.
  • Some cities of Arizona, including Phoenix, have chosen to raise the minimum wage, up to $15, which is more than double of federal minimum wage and $3 more than the State's minimum wage.
  • According to a survey, the average salary per person in 2019 is slightly under $30,000 per year.
  • Arizona follows the Progressive tax system, with a tax bracket range of 2.59% and 4.54%, so higher the income, the higher the tax.
  • Any city charges no Local Income Tax in Arizona.
  • An employee who works in a specific industry, including motion picture production and seasonal agricultural workers are exempted from Arizona State Income Tax. Moreover, workers having their spouses in Armed forces with Arizona are also exempted from Arizona State Withholding Tax.
  • Under reciprocal taxation agreements between Arizona and California, the District of Columbia, Virginia, and Oregon, any employee from the before mentioned states works in Arizona can request an exemption from Arizona State Income Tax by filing Form WEC, Withholding Exemption Certificate.
  • In Arizona, the median household income, according to the United States Census Bureau, is $53,510.

How to calculate Paycheck in Arizona

Follow are the steps that every employee and employee needs to consider, working in Arizona.

Step 1: Determine the Pay Type

The first and foremost thing to calculate the paycheck is to determine the Pay Type. It is whether the employee is paid on:

  • Hourly basis: Employee is paid at an agreed hourly rate for the number of hours worked in a day or a week. Here the employee is paid overtime for every extra hour he/she works over regular hours. According to the Fair Labor Standard Act, regular hours are 8 hours a day or 40 hours a week, and for every extra hour, an employee must be paid at time and half of the regular hourly rate as overtime.
  • Salary basis: Employee is paid a fixed amount for a set number of days regardless of how many hours he/she works. Unfortunately, there is no law for paying overtime to a salaried employee.

Arizona State Laws for Pay Type:

  • Arizona State doesn't limit its employees to amounts of hours they can work in a day or a week. However, employers and employees must follow the guideline provided by U.S Wage and Hours Division and FLSA (Fair Labor Standard Act).
  • In Arizona, Regular Hours worked are 40 Hours per Week. Hours worked that exceed 40 hours in a week would be considered as overtime.
  • However, Arizona State Law does have laws to regulate overtime, which you will read in Step 3 ahead.

Step 2: Determine the Pay Frequency

Pay Frequency Details
Weekly The employees are paid once a week.
Bi-Weekly The employees are paid once every two weeks.
Semi-Monthly The employees are paid twice a month. Usually on the 15th and 30th day of the month.
Monthly (Prohibited by Arizona State Law) The employees are paid once every month. Mostly at the start or end of the month.
Quarterly (Prohibited by Arizona State Law) The employees are paid after every three months.
Annually (Prohibited by Arizona State Law) The employees are paid once a year.

The second step is to determine the Pay Frequency of your Paycheck; it is how often the employees are paid. Some of the standard Pay Frequencies are:

Arizona State Laws for Pay Frequencies:

  • Arizona State Law requires the employer to pay their employees with at least a semi-monthly pay frequency, which is twice every month. All the paychecks must be given within five working days after the pay period ends. Moreover, employees must receive a salary no longer than 16 days apart.
  • Overtime or exception earned by the employee must also be paid with 15 days after it is earned.
  • According to Arizona State Law, if payday is occurring on holiday, then employers are abided to pay the wages before the due date.

Step 3: Determine the Gross Pay

The third step is to determine the Gross Pay of the employee based on the following criteria:

Hourly Employee:

  1. Basic Salary is calculated by multiplying Number of Hours worked in a pay frequency by Regular Hourly Rate.
  2. Overtime pay is calculated according to FLSA law, where every extra hour worked after 40-hours in a week, would be counted as Overtime hour that must be paid in time and half of regular hourly rate.
  3. Double Time Pay is a time that an employer pays in double the regular hourly rate to the employee. It is paid if the employee works on federal holidays. However, their employers are not bound to pay it according to FLSA or Arizona State law.
  4. Now, to deduce the Gross Pay, we need to add Overtime Pay, Double Time Pay, Bonuses, Commissions, fringe benefits, Vacations Pay, Sick Pay, and Holiday Pay (If Any) into Basic Salary.

Salaried Employee:

  1. To determine the gross salary for the employee, start with the annual salary and divide it by the number of pay periods to get a basic salary. For example, if the employee’s annual salary is $25000, and is paid twice a month, then you must divide 25000/24. Therefore, the employee's basic salary is $1042.
  2. Now, add (if any) reimbursements, bonuses, commissions, fringe benefits, or tips to the basic salary of the employee.
  3. Next, you need to add overtime pay into basic salary, only if the salaried employee has a salary equal to or below $455 a week or $23,660 annually. The FLSA regulates this, and the employee must be paid overtime at the rate of time and half of the hourly rate.
  4. Last, subtract any unpaid time off(s) from the basic salary to get Gross Pay.

Arizona State Laws for Gross Pay:

  • The current minimum wage in Arizona is $11 (2019). However, it would rise to $12 from January 2020 onwards. Therefore, Employers are abided to pay at least this salary to their employees.
  • Arizona State Law follows the Federal Law (FLSA Overtime Law) for regulating Overtime, where the eligible employees must be paid in one and half of the regular hourly rate for every excess hour they work in 40 hours workweek.
  • For Meals and Lunch break, Arizona State law follows the Federal Law, where the employer is not bound to provide lunch breaks. However, if they choose to do so, then they must provide 20 minutes Paid Lunch break. Moreover, if an employer offers lunch breaks for more than 30 minutes than they are not bound to pay for it.
  • Arizona State law permits the Employers to pay tips up to $3.00 per hour less than the minimum wage to their employees. This is to ensure that the employees earn at least minimum wage for all hours worked each week (including tips).
  • According to Arizona State Law, Employee has a right to schedule Voting Hours, and their pay must not be deducted for voting time.
  • The Fair Wages and Healthy Families Act (FWHFA) requires employers to pay for sick leaves to the eligible employees. Moreover, employers with less than 15 employees must provide up to 24 hours annually, and employers having 15 or more employees must provide up to 40 hours of paid sick time annually.
  • The FWHFA also requires the employer to pay their eligible employees other paid leaves, including Crime victim leave, Voting Leave, Jury duty leave, and Military leave.
  • Employees who resigned must be paid on the next payday. Moreover, Employees who are fired must be paid within seven business days or next payday (which comes earlier).

Step 4: Determine the Filing Status:

Here starts the complicated part. After the Gross Pay for the employee is deduced, the next thing an employer has to do is to refer the W-4 tax form that was filled by the employee, while joining the job.

Note:

  • The employee has to update his Form W4, if any significant changes come to his/her life, such as marriage, divorce, or the birth of a baby.
  • The employee also has the authority to make a change in his/her form W4, an unlimited number of times, but only once per paycheck.

This form contains all the essential details, including income tax details, marital status, and the number of allowances to be claimed. These details are required to calculate the Taxable Income, Federal Taxes, Allowances, State Taxes, and Local Taxes, that the employer has to withhold from the employee's salary.

Note: As IRS has made changes in the Tax Form W4, which would be effective from January 2020. Therefore, all the following steps are according to the new form.

There is a total of four filing statuses, from which the employee has to choose one. These are the following:

  • Single
  • Married filing separately
  • Married filing jointly
  • Head of Household

Note: You can select "Single" as Marital Status on the Arizona Paycheck Calculator if the employee is "Single" or "Married filing separately." Else Choose "Married" if the employee is "Married Filing Jointly" or "Head of Household."

Step 5: Calculating the Taxable Income:

Taxable income is the income, which is used to determine the amount of taxes that should be withheld from the employee’s paycheck by the employer. It is different from Gross Pay.

There is the portion of income that is exempted from the taxes, such as cash gifts, inheritances, rebates, Welfare income, child support, State and local tax refunds, Life insurance, etc. This portion can be determined and claimed by the taxpayer (employee) by using "itemized deductions."

As the "itemized deductions" process is too long, the Taxpayer can also go for “standard deductions (a specific amount defined by the government to be deducted from Gross Pay according to taxpayer’s filing status” instead, for calculating the Taxable Income.

Standard Deduction amount for 2018 to 2025 is as follow: 

To determine the Taxable income, the taxpayer (employee) has to:

Filing Status Standard Deduction Amount
Single $12,000
Married Filing Separately $12,000
Married Filing Jointly $18,000
Head of Household $24,000
Qualifying Widow(er)s $24,000
  • Subtract any “Standard deductions” or “Itemized deductions” deductions from the Gross Pay.
  • Subtract any “tax exemptions” such as “dependent exemption”

Note: This is just a general overview of Taxable Income. Many other factors need to be considered for Taxable income determination. Moreover, the criteria can be different from person to person. You must refer to your Lawyer, or study Taxable income in detail for calculating the accurate Taxable Income.


Step 6: Subtracting the Pre-Tax Contributions from Taxable Income:

Once the taxable income of an employee is deduced, the next step is to subtract any pre-tax contributions that were chosen by the employee. These contributions are designed to encourage employees to save for their retirement. Additionally, it further reduces the amount of taxable income, hence, increasing the take-home amount of an employee.

However, not all contributions are exempted from all taxes, but on federal income tax, therefore, some employees may have to pay FICA, state, or other taxes on such contributions.

Here are some common contributions that employee can choose:

  1. A Qualified retirement plan such as a traditional 401(k) or 403(b)
  2. traditional IRA - Individual Retirement Accounts
  3. SEP-IRA, SIMPLE IRA, or Solo 401(k)
  4. A tax-advantaged healthcare savings account (HSA)
  5. Dependent care FSA contributions
  6. Commuter Plan
  7. Health Insurance 

Step 7: Deducing the Number of Federal Allowances:

Before jumping on to Federal Taxes, it is essential to conclude the number of Allowances that an employee needs to claim.

Allowances are exemptions from paying a certain amount of income tax. Therefore, the amount of withholding tax that an employer withholds from the employee’s paycheck is inversely proportional to the number of allowances claimed.

General Number of Allowances a Taxpayer (Employee) must Claim
Situation Number of Allowances to claim
The taxpayer depends on someone 0 to 1 Allowance
Single – One Job – Taxpayer doesn't depend on anyone 1 to 2 Allowances
Married Couple with no dependents 2
Head of Household with one dependent 3
A married couple with one dependent 3
A married couple with two dependent 4

Effects of Allowances on Federal Taxes

The employee in form W4 already fills details of claimed allowances. The employee must do a complete working before filling out the details for the number of allowances he/she needs to claim as dis-balance can cause him/her to overpay or underpay taxes.

Effects of Allowances on Federal Taxes
Situation Effects on Federal Withholding Taxes Consequences
To many Allowances claimed ·Withholding Federal Tax decreases
·Take-Home Pay Increases
·The taxpayer may owe money to IRS
·Tax Payer has to pay the pending tax amount along with penalties
Too few Allowances claimed ·Withholding Tax Federal increases
·Take-Home Pay decreases
·IRS may owe money to the taxpayer, for which
·Tax Payer is likely to receive a refund
·Tax Payer may have less money to spend the whole year until the refund is received
 

Details on how many allowances an employee must claim are provided here.

Step 8:  Subtracting the Federal Taxes

Once the final taxable income is calculated after subtracting all deductions (standard or itemized) and contributions, a certain amount is withheld by the employer from an employee's paycheck as federal income tax along with the two federal (FICA) programs: Social Security and Medicare.

Federal Income Taxes

This Federal Income Tax rate is applied at a gradual level, ranging from 0% to 37% of taxable earnings, depending on the filling status, number of Allowances claimed, and taxable income, so higher the income, higher the federal tax rate. These rates are as follow:

Single Filers
Taxable Income Rate
$0 - $9,525 10.0%
$9,525 - $38,700 12.0%
$38,700 - $82,500 22.0%
$82,500 - $157,500 24.0%
$157,500 - $200,000 32.0%
$200,000 - $500,000 35.0%
$500,000+ 37.0%

Married, Filing Jointly
Taxable Income Rate
$0 - $19,050 10.0%
$19,050 - $77,400 12.0%
$77,400 - $165,000 22.0%
$165,000 - $315,000 24.0%
$315,000 - $400,000 32.0%
$400,000 - $600,000 35.0%
$600,000+ 37.0%

Married, Filing Separately
Taxable Income Rate
$0 - $9,525 10.0%
$9,525 - $38,700 12.0%
$38,700 - $82,500 22.0%
$82,500 - $157,500 24.0%
$157,500 - $200,000 32.0%
$200,000 - $500,000 35.0%
$500,000+ 37.0%

Head of Household
Taxable Income Rate
$0 - $13,600 10.0%
$13,600 - $51,800 12.0%
$51,800 - $82,500 22.0%
$82,500 - $157,500 24.0%
$157,500 - $200,000 32.0%
$200,000 - $500,000 35.0%
$500,000+ 37.0%

FICA Taxes (Social Security and Medicare):

In addition to the Federal Income Tax, Employees are also subjected to FICA Tax (Federal Insurance Contributions Act). These taxes are used for helping American citizens with retirement, disability, survivorship, and medical treatment which comprises:

  1. Social Security Tax

A total of 12.4% of FICA tax is paid for Social Security, by both employee and employer. Here 6.2% is paid by Employee and remain 6.2% is funded by the employer. However, the Social Security tax is only applicable to the first $132,900 (in 2019) earned. No amount is charged above this earning,

  1. Medicare Tax

1.45 percent each is paid to Medicare by both employee and employer. Moreover, if the taxpayer (employee or employer) earns more than $200,000 as a single filer or $250,000 as a married couple than additional Medicare taxes of 0.9% are to be paid.


Note: If you are calculating your federal taxes as an employer, you have to add FUTA unemployment taxes in addition to FICA taxes, which is 6% of the first $7,000 of each employee’s taxable income.

Some points related to Federal Withholdings Taxes for Arizona State:

  • The employee is exempted from paying federal tax if, in the previous tax year, he/she has received a refund of all federal income tax withheld from his/her paycheck because he/she had zero tax liability.
  • The employee is exempted from paying federal tax if, in the current year, he/she is expecting to receive a refund of all federal income tax withheld because he/she expects to have zero tax liability again. If the employee thinks that he/she qualifies for this exemption (for example, because his/her income is quite low), he/she can indicate this on his/her W-4 Form.

Step 9: Subtracting State Taxes:

Like most of the States in the United States, Arizona State also requires the employers to withhold a certain percentage of the amount from each employee's paycheck as Arizona State Income Tax.

Employers must calculate the Arizona State Withholding according to the details found in Form A-4, which is filled by each employee while joining the job.

What should my Arizona Withholding be?

The details including filing status, taxable income, and allowances should be used to deduce the state withholding percentage that falls among the five State income tax brackets set by the Arizona State, which are as follow:

Single Filers
Alabama Taxable Income Rate
$0 - $10,346 2.59%
$10,346 - $25,861 2.88%
$25,861 - $51,721 3.36%
$$51,721 - $155,159 4.24%
$155,159+ 4.54%

Married, Filing Jointly
Alabama Taxable Income Rate
$0 - $20,690 2.59%
$20,690 - $51,721 2.88%
$51,721 - $103,440 3.36%
$103,440 - $310,317 4.24%
$310,317+ 4.54%

Married, Filing Separately
Alabama Taxable Income Rate
$0 - $10,346 2.59%
$10,346 - $25,861 2.88%
$25,861 - $51,721 3.36%
$$51,721 - $155,159 4.24%
$155,159+ 4.54%

Head of Household
Alabama Taxable Income Rate
$0 - $20,690 2.59%
$20,690 - $51,721 2.88%
$51,721 - $103,440 3.36%
$103,440 - $310,317 4.24%
$310,317+ 4.54%


Note: Arizona Income Tax Rates are marginal tax rates. Therefore, the rate in question only applies to the income that falls in that bracket. For how to calculate your Arizona State Income tax rate manually, you can visit this link.

Arizona State Tax Allowances (Standard and Itemized Deductions):

Like, Federal Tax allowances, the Arizona employee can also claim Arizona State Allowances (Deductions), according to their filing status. This helps to reduce taxable income for Arizona State Tax. Consequently, increasing the take-home pay of an employee.


Standard Deduction (Allowance) Amount from Arizona State Tax: 

Personal Exemptions from Arizona State Tax
Filing Status Exemption Amount
Single $12,200
Married Filing Jointly $24,400
Head of Family $18,350

Note:

  • The taxpayer can also choose Itemized Deductions over Standard Deduction for Arizona State Income Tax. Wherefore, they are requested to visit the Arizona State official website for more details.
  • None of the counties in Arizona Charges any municipal or local taxes on their residents.
  • Personal Exemptions are no longer available from 2019 onwards.
  • Standard and Itemized Deduction Laws of Arizona State may be slightly different from the Federal Laws. Therefore, Taxpayers are requested to study Arizona State Law for State Income Tax before deducing the Tax amount.

Step 10: Subtracting the Post-Tax Deductions and Contributions

Although employees are not charged any post-tax deductions. However, they can choose some post-tax contributions and benefits. If an employee has opted some, then its employer's duty to account them into the employee's paycheck.

Some of the common Post-Tax Contributions are:

  • Retirement funds like Roth 401(k).
  • A certain amount may also be withheld by the employer from the employee's paycheck as Wage Garnishments if the employee is subjected to any court-ordered garnishments.
  • Contributions to 529 college savings plans, Union dues or charitable donations.

Step 11: Calculating Paycheck

Once you have calculated all the details, as discussed above, then it's time to enter all your details into our Arizona Paycheck Calculator and deduce the paycheck “Net Pay” amount instantly.

FAQs

Answer: There are five tax brackets for Arizona State Income Tax from 2.59% and 4.54%, in addition to Federal Income Tax ranging from 0% to a top marginal rate of 37% and FICA taxes. Moreover, a percentage of FICA taxes are also deducted from both employer and employee.

Answer: Arizona State Income Tax rates are in five brackets for each one of four filing statuses. For instance, As single filer, for the earnings between $0 - $10,346, you'll pay 2.59%, For earnings between $10,346 - $25,861, you'll pay 2.88%, For earnings between $25,861 - $51,721, you'll pay 3.36%, For earnings between $51,721 - $155,159, you'll pay 4.24% and  for earning the $155,159+, you will pay 4.54%.

Note: For Arizona State Tax Rates for other filing Status, refer to the Table under Step 8 in the guide above.

Answer: You can easily use our Paycheck Calculator to deduce your accurate Take Home Pay instantly.

Answer: Federal Tax in Arizona and all other states are the same. These income tax rates are in seven brackets range from 0% to a top marginal rate of 37%, depending on the filing status, income, and number of Allowances claimed.Income-tax brackets for 2019, are shown here.

Answer: Below is the List of Taxes that an employee pays in Arizona:

  • Federal Income Tax (range from 0% to a top marginal rate of 37%)
  • FICA Tax (6.2% of Social Security and 1.45% of Medicare) (Additional Medicare tax may apply)
  • Arizona State Income Tax (range from State Income Tax from 2.59% and 4.54%)

Answer: Essentially, the standard deduction for Arizona State Tax for Single Filer is $5,312.00 annually and $10,613.00 for those filing jointly on tax-free income.

Answer: All the individuals working in Arizona, with an adjusted gross income of at least $5,500, must file state income taxes. However, there are few exceptions, for which you can study the above guide or visit Arizona State Tax Official Site.

Answer: Yes, If you are itemizing your tax deductions on your Arizona return.

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