What are the withholding rates for Arizona?
Arizona withholding is required from income received for services performed in Arizona. The Arizona rates are a percentage of federal income tax withheld. The minimum rate is 10% for employees whose annual compensation is less than $15,000. For employees whose compensation is $15,000 or more, the minimum rate is 19% of federal income tax withheld. An employee may also elect a higher percentage of withholding (19%, 23%, 25%, 31%, or 37%). Employees may elect 0% withholding if they had no Arizona tax liability in the prior taxable year and expect to have no state tax liability for the current taxable year.
