Arizona 2025 Tax Rates

Withholding Method

: 2.5%

• Tax tables
• Standard deductions are not applicable

Supplemental Wage / Bonus Rate

: taxed same as regular income

Register as an employer on the Arizona Department of Revenue website

Employee's Withholding Tax Exemption Certificate

: A-4. Withholding forms A-4 and A-4V have been revised effective 2025.

Nonresident withholding

:

• If the employee working in Arizona is not an Arizona resident, withholding of Arizona state income tax is required once the employee has been working in Arizona for 60 days. If both the employer and nonresident employee agree, withholding can start at the beginning of employment instead of waiting 60 days.
• If you are a nonresident working in Arizona, you may claim an exemption from Arizona income tax withholding if you are:
  • A resident of one of the following states: California, Indiana, Oregon, or Virginia
  • AND allowed to claim a tax credit against your Arizona tax for taxes paid to your state of residence on Arizona Form 140NR filed for the year.

Arizona Wage Base

: $8,000 for 2025

Arizona SUI rates range from

: 0.04% to 9.72% for 2025

Arizona new employer rate

: 2.0% for 2025

Get your unemployment insurance rate: Arizona UI agency website

None

None

None

Arizona Minimum Wage

: $14.70 per hour, since 2025

Arizona Termination Pay

:

• Employee is fired — pay within 7 working days or the end of the next regular pay period, whichever is sooner
• Employee quits — pay by the next regular payday

Paid Sick Leave

— employees are entitled to paid sick leave, at the rate of one hour of paid sick time for every 30 hours worked. Limits apply based on the size of the employer:

• 14 employees or less— maximum of 24 hours per year
• 15+ employees — maximum of 40 hours per year

New Hire Unit
Arizona New Hire Reporting Center
PO Box 142901
Austin TX 78714

Phone: 888-282-2064

Fax: 888-282-0502

Clearinghouse
PO Box 52107
Phoenix, AZ 85072

Phone: 602-252-4045

California

District of Columbia

Indiana

Oregon

Virginia