When you open your Arizona paycheck, you see gross pay, federal taxes, state withholding, and other deductions before arriving at your take-home amount. But what do all those line items really mean?
This guide explains the typical Arizona paycheck breakdown, covering taxes, deductions, and real-world examples so you can clearly see how gross pay turns into net pay.
Federal Taxes Withheld
Every Arizona paycheck includes federal deductions:
- Federal Income Tax – Based on your W-4 form and filing status.
- Social Security Tax (6.2%) – Applies to wages up to the federal cap.
- Medicare Tax (1.45%) – Applies to all wages, with an additional 0.9% for high earners.
Arizona State Taxes
Arizona requires employees to complete Form A-4 to set their state withholding rate. Choices range from 0.5% to 3.5%.
- Lower percentage = bigger paycheck now, but you may owe later.
- Higher percentage = smaller paycheck now, but less chance of a tax bill.
For a quick estimate of how this choice changes your take-home pay, try a take-home pay calculator for Arizona.
Other Deductions You Might See
- Health insurance premiums
- Retirement contributions (401(k), IRA, pension)
- Union dues or wage garnishments
- Flexible spending or HSA contributions
Example: Salary Worker
Suppose you earn $50,000/year, paid bi-weekly.
- Gross Pay: $1,923.08
- Federal Tax: ≈ $200
- Arizona State Tax (2%): $38.46
- Social Security (6.2%): $119.23
- Medicare (1.45%): $27.88
Net Pay: ≈ $1,537.51
| Description | Amount |
|---|---|
| Gross Pay | $1,923.08 |
| Federal Income Tax | $200.00 |
| AZ Withholding 2% | $38.46 |
| Social Security | $119.23 |
| Medicare | $27.88 |
| Net Pay | $1,537.51 |
Example: Hourly Worker
You work 40 hours/week at $20/hour.
- Gross Pay: $800
- Federal Tax: ≈ $80
- AZ Withholding (2%): $16
- Social Security: $49.60
- Medicare: $11.60
Net Pay: $642.80
Arizona Paycheck Context in 2025
- Minimum wage: $14.35/hour
- Pay frequency: Employers must pay at least twice per month.
- Form A-4: Mandatory for setting state withholding percentage.
FAQs
Q1. What taxes are deducted from an Arizona paycheck?
Federal income tax, Social Security, Medicare, and Arizona state withholding.
Q2. Does Arizona have local income taxes?
No, only state-level withholding applies.
Q3. What is Arizona’s minimum wage in 2025?
It is $14.35 per hour.
Q4. Can I change my state withholding?
Yes, by submitting a new Form A-4.
Q5. Why is my net pay lower than expected?
Because deductions include both taxes and benefits like health insurance or retirement savings.
Final Thoughts
Your Arizona paycheck reflects more than gross wages. It includes federal taxes, state withholding, and optional deductions like retirement or health benefits. By understanding each part of the breakdown, you’ll know exactly how your take-home pay is calculated and how to adjust it if needed.
Harry is the creator of ArizonaPaycheckCalculator.com, a trusted resource for accurate and easy-to-use payroll and tax calculators. With a focus on clarity and precision, Harry helps Arizona residents understand their take-home pay, deductions, and withholdings. Dedicated to making complex calculations simple, he combines financial knowledge with user-friendly tools to save users time and confusion.