Arizona 2023 Tax Rates

Withholding Requirements

Employers and employees are subject to income tax withholding. There are federal and state withholding requirements

• Register as an employer on the Arizona Department of Revenue website

• Employee's Withholding Tax Exemption Certificate

  : A-4

• Withholding Method

  : percent of gross pay

• Supplemental Wage / Bonus Rate

  : percent of gross pay

Arizona Local Taxes

• None

Arizona State Unemployment Insurance (SUI)

• Arizona Wage Base

  : $8,000 for 2023

• Arizona SUI rates range from

  : 0.07% to 18.78% for 2023

• Arizona new employer rate

  : 2.0% for 2023
• Get your unemployment insurance rate: Arizona UI agency website

Arizona State Disability Insurance (SDI)

• None

Arizona Family Leave Insurance (FLI)

• None

Arizona State Labor Laws

• Arizona Minimum Wage

  : $13.85 per hour

• 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

Arizona New Hire Reporting

• New Hire Unit
  Arizona New Hire Reporting Center
  PO Box 142901
  Austin TX 78714
• Phone: 888-282-2064
• Fax: 888-282-0502
• Arizona new hire online reporting

Remit Withholding for Child Support to

• Clearinghouse
  PO Box 52107
  Phoenix, AZ 85072
• Phone: 602-252-4045
• Arizona child support payment online

Arizona Reciprocal States

• California
• District of Columbia
• Indiana
• Oregon
• Virginia