Reading an Arizona pay stub, line by line
An Arizona pay stub has exactly four involuntary deductions — and the state one is unusual: it isn't computed from brackets or allowances at all, but from a percentage you pick. Here is what each line means in 2026:
AZ State Income Tax ("AZ SIT", "Arizona Withholding"). Arizona's income tax is a flat 2.5% of taxable income — one rate for everyone since tax year 2023, among the lowest of any state with an income tax. Withholding works differently from anywhere else: on Form A-4 you check a single percentage of your gross taxable wages — 0.5%, 1.0%, 1.5%, 2.0%, 2.5%, 3.0%, or 3.5% — or certify zero if you expect no Arizona liability, and your employer withholds exactly that. If you never file an A-4 within five days of starting, the default is 2.0%. Because the actual tax is 2.5% of income after the standard deduction (Arizona sets its own standard deduction in A.R.S. § 43-1041; for 2026 it is $16,100 for a single filer, the same as the federal figure), most people who pick 2.0% land close to their real liability; picking 2.5% over-withholds and produces a refund.
What you will NOT see: a city or county income tax — political subdivisions have been barred from levying one since a 1972 voter initiative — state disability insurance, a paid-family-leave premium (Arizona has no program; earned paid sick time under Prop 206 is employer-funded), or an unemployment deduction: A.R.S. § 23-726 says UI contributions "shall not be deducted, in whole or in part, from the wages" of employees.
One extra line Arizona does require: your earned paid sick time balance. A.R.S. § 23-375(C) says the sick time available, the amount taken this year, and the pay received for it must appear on — or attached to — every regular paycheck.
Plus the federal lines on every US stub: federal income tax, Social Security (6.2% up to $184,500 in 2026), and Medicare (1.45%, plus 0.9% on wages over $200,000).
Arizona paycheck facts — 2026
| Item | 2026 value |
|---|---|
| State income tax | Flat 2.5% of taxable income (A.R.S. § 43-1011) |
| Withholding on stubs | Employee-elected % of gross taxable wages on Form A-4: 0.5%–3.5% · default 2.0% |
| Standard deduction | Matches federal — $16,100 single for 2026 |
| Employee-paid SUI / SDI / PFML | None — UI deduction illegal (A.R.S. § 23-726); no disability or paid-leave program |
| Local income taxes | None — prohibited since July 1, 1973 |
| Minimum wage | $15.15 Arizona · $18.35 Flagstaff (no tip credit) · $15.45 Tucson |
| Tipped cash wage | $12.15 statewide (tip credit up to $3.00) · $12.45 Tucson · $18.35 Flagstaff |
| Pay frequency | At least two paydays a month, no more than 16 days apart (A.R.S. § 23-351) |
| Pay stub required? | Yes when paid by direct deposit or payroll card (§ 23-351(E)–(F)); sick-time balance on every check |
| Final paycheck | Fired: within 7 working days or end of next pay period, whichever is sooner · Quit: next regular payday |
What you actually take home in Arizona (2026 estimates)
Estimated for a single filer taking the standard deduction, including federal income tax, Social Security, Medicare, and Arizona income tax at 2.5% after the $16,100 standard deduction:
| Gross pay | Est. net per year | Net biweekly | Net monthly | Effective tax |
|---|---|---|---|---|
| $40,000 | $33,723 | $1,297 | $2,810 | 15.7% |
| $60,000 | $49,293 | $1,896 | $4,108 | 17.8% |
| $75,000 | $60,120 | $2,312 | $5,010 | 19.8% |
| $100,000 | $77,083 | $2,965 | $6,424 | 22.9% |
| Arizona min wage, full-time ($15.15/hr) | $27,115 | $1,043 | $2,260 | 14.0% |
| Flagstaff min wage, full-time ($18.35/hr) | $32,296 | $1,242 | $2,691 | 15.4% |
Your stub depends on the box you checked. At $60,000, the actual Arizona tax is about $1,098 (1.8% of gross). An employee who left the A-4 at the 2.0% default has $1,200 withheld — a $102 refund; one who checked 2.5% has $1,500 withheld and gets about $400 back; 1.5% ($900) leaves roughly $200 owed in April. Pick the percentage that lands closest to 2.5% of your income after deductions.
Where the money goes at $60,000: Arizona takes $1,098; federal income tax and FICA take $9,610 — the state is under 11% of the total tax bill, the smallest share of any income-tax state on this site.
Methodology: 2026 federal brackets and $16,100 standard deduction (IRS Rev. Proc. 2025-32), FICA per SSA, Arizona flat 2.5% (A.R.S. § 43-1011(A)(9)) after Arizona's own standard deduction — A.R.S. § 43-1041 prescribes state amounts, rewritten to the federal base figures ($15,750 single / $31,500 joint for 2025) by HB 4168, signed June 13, 2026, and indexed for inflation in the same manner as the federal basic standard deduction under section 63 of the Internal Revenue Code, so the 2026 single amount is the same $16,100. Estimates reflect annual liability, not the A-4 percentage actually withheld — your stub depends on the box you checked, your W-4, credits, and pre-tax benefits.
What Arizona jobs pay (BLS, May 2025)
| Occupation | Median hourly | Median annual |
|---|---|---|
| Registered nurse | $47.84 | $99,500 |
| Software developer | $62.35 | $129,690 |
| Elementary school teacher | — | $56,590 |
| Truck driver (heavy) | $27.92 | $58,080 |
| Construction laborer | $22.40 | $46,590 |
| Customer service rep | $21.97 | $45,690 |
| Waiter / waitress (tips included) | $21.13 | $43,950 |
| Retail salesperson | $17.18 | $35,720 |
Arizona's median hourly wage across all occupations is $24.07 — just under the national median of $24.51. The high minimum wage shows at the bottom of the table: Arizona retail salespersons ($17.18) and waiters ($21.13 with tips) out-earn their counterparts in Texas by $3–$10 an hour.
Arizona's workforce in numbers
- 7.6 million residents, civilian labor force of 3.7 million, unemployment 4.9% (Census 2025 estimate; BLS, July 2026 preliminary)
- 598,126 self-employed (nonemployer) businesses (Census, 2023) — about one for every 13 residents, and 3.7 times the number of businesses with employees (162,845)
- 2.9 million people on employer payrolls (Census County Business Patterns, 2023)
- Mean annual wage: $67,620 (BLS OEWS, May 2025)
Arizona pay rules — the answers people actually need
Final paycheck: it depends on who ended it. If you are fired, A.R.S. § 23-353 requires payment within seven working days or by the end of the next regular pay period, whichever comes first. If you quit, it's due on the regular payday for the period in which you left, and must be mailed if you ask. Shorted wages can be recovered as treble damages in court (§ 23-355) or through an Industrial Commission wage claim of up to $12,000 filed within one year (§ 23-356 — many websites still quote the old $5,000 cap).
Pay frequency: at least two paydays a month, no more than 16 days apart (§ 23-351(A)). Wages are due within five business days after the pay period ends (ten if payroll is processed out of state); overtime within 16 days. Monthly pay is allowed only for exempt staff of employers headquartered outside Arizona.
Is a pay stub required? Yes for the direct-deposit majority: § 23-351(E) requires a written or electronic statement of earnings and withholdings whenever wages are paid by deposit, and (F) repeats it for payroll cards. Arizona has no itemized-statement rule for paper checks, but § 23-375(C) separately requires the paid-sick-time balance on every paycheck, and § 23-364(D) gives you the right to inspect and copy your own payroll records, which employers must keep for four years.
Deductions are allowed only when required by law, authorized by you in writing (revocable), or subject to a reasonable good-faith dispute (§ 23-352). You can't be forced onto direct deposit — refusing it can't cost you the job — and a payroll card is allowed only after you decline a bank deposit.
City minimum wages above the state floor (2026)
Arizona's minimum wage rises every January 1 by the August-to-August change in CPI, rounded to the nearest nickel (A.R.S. § 23-363). For 2026 that took it to $15.15 — more than double the federal $7.25. Two cities go further:
| Jurisdiction | 2026 minimum wage | Tipped cash wage | Notes |
|---|---|---|---|
| Arizona (statewide) | $15.15 | $12.15 | Tip credit up to $3.00; CPI-indexed each Jan 1 |
| Flagstaff | $18.35 | $18.35 | No tip credit; applies after 25+ hours a year inside city limits |
| Tucson | $15.45 | $12.45 | Tucson Minimum Wage Act (Prop 206, 2021); CPI-indexed from 2026 |
A full-time job at Flagstaff's rate grosses $38,168 a year — $6,656 more than the same job in Phoenix or Mesa at the state rate. Tucson's ordinance covers anyone working at least five hours per pay period in the city. The 2027 state rate is announced by the Industrial Commission in early October 2026, once August CPI is published.
How Arizona compares with its neighbors (take-home on $60,000, 2026 est.)
| State | Est. net/year | Difference vs AZ |
|---|---|---|
| Arizona | $49,293 | — |
| Nevada (no state income tax) | $50,390 | +$1,098 |
| Utah (flat 4.5%) | $48,143 | −$1,150 |
| New Mexico | ~$48,700 | −~$593 |
| California | $47,817 | −$1,475 |
| Texas (no state income tax) | $50,390 | +$1,098 |
Arizona's 2.5% is the lowest flat income tax of any state with one. A $60,000 earner keeps about $1,475 more than in California and $1,100 more than in Utah — and is only about $1,100 behind neighboring Nevada, which has no income tax at all.
(Utah and New Mexico figures are directional estimates pending those pages' full data workup.)
FAQ
What percentage should I choose on my Arizona A-4?
Arizona's tax is a flat 2.5% of income after deductions, so 2.0% of gross wages — the default if you file nothing — lands close to the real liability for most single filers taking the standard deduction. Choose 2.5% or higher if you have other income, or a lower percentage if you have large deductions or credits. Options are 0.5%, 1.0%, 1.5%, 2.0%, 2.5%, 3.0%, 3.5%, or zero with a no-liability certification renewed each year.
How much tax comes out of a paycheck in Arizona?
A single filer earning $60,000 keeps about $49,293 a year — roughly $1,896 per biweekly check, a 17.8% effective rate covering federal income tax, Social Security, Medicare, and Arizona's 2.5% tax after the standard deduction. The Arizona line itself is about $1,098 a year; the exact amount withheld depends on the percentage elected on Form A-4.
What is the Arizona minimum wage in 2026?
$15.15 per hour statewide, effective January 1, 2026, with a tipped cash wage of $12.15 (tip credit up to $3.00). Flagstaff requires $18.35 with no tip credit, and Tucson $15.45 ($12.45 tipped). The state rate is indexed to inflation every January 1.
When is my final paycheck due in Arizona?
If you were fired, within seven working days or by the end of the next regular pay period, whichever is sooner (A.R.S. § 23-353(A)). If you quit, by the regular payday for the pay period in which you left, mailed if you request it. Unpaid wages can be recovered as treble damages in court or through an Industrial Commission claim of up to $12,000 filed within one year.
Does Arizona require employers to give pay stubs?
Yes when wages are paid by direct deposit or payroll card — A.R.S. § 23-351(E) and (F) require a written or electronic statement of earnings and withholdings. Every paycheck must also show the employee's earned paid sick time balance (§ 23-375(C)), and employees may inspect and copy their own payroll records, which employers keep for four years.
Does Phoenix or any Arizona city have a local income tax?
No. A 1972 voter initiative prohibited counties, cities, and towns from levying income taxes, effective July 1, 1973, in exchange for a share of state income tax revenue. The only state-level line on an Arizona stub is the A-4 withholding percentage.
Can my Arizona employer deduct unemployment insurance from my wages?
No. A.R.S. § 23-726 says employer UI contributions shall not be deducted in whole or in part from employee wages. Arizona also has no state disability insurance or paid-family-leave payroll premium; earned paid sick time is funded by the employer.