1. What Is The Az Paycheck Tax Calculator?

The Az Paycheck Tax Calculator helps Arizona residents estimate their net pay after accounting for state, federal, and FICA taxes. It uses Arizona's flat 2.5% income tax rate effective from 2025.

2. How Does The Calculator Work?

The calculator uses the following formula:

Where:

• \( Gross \) — Total earnings before deductions
• \( AZ Tax \) — Arizona state tax at 2.5% flat rate
• \( Federal Tax \) — Federal income tax based on your tax bracket
• \( FICA Tax \) — Social Security and Medicare taxes at 7.65%

Explanation: The calculation subtracts all applicable taxes from your gross pay to determine your take-home pay.

3. Arizona Tax Information

Details: Arizona implemented a flat 2.5% income tax rate starting in 2025, replacing the previous progressive tax system. This simplifies tax calculations for all income levels.

4. Using The Calculator

Tips: Enter your gross pay in USD and your estimated federal tax rate percentage. The calculator will automatically compute Arizona tax (2.5%) and FICA tax (7.65%).

5. Frequently Asked Questions (FAQ)

Q1: What Is Arizona's Current Tax Rate?
A: Arizona has a flat 2.5% state income tax rate effective from 2025.

Q2: What Is Included In FICA Tax?
A: FICA includes Social Security (6.2%) and Medicare (1.45%) taxes, totaling 7.65%.

Q3: How Do I Determine My Federal Tax Rate?
A: Your federal tax rate depends on your income level and filing status. Consult IRS tax brackets or your most recent pay stub.

Q4: Are There Other Deductions Not Included?
A: This calculator focuses on major taxes. Additional deductions may include health insurance, retirement contributions, and other voluntary deductions.

Q5: Is This Calculator For Annual Or Per-Paycheck Calculations?
A: You can use it for either. Enter your gross amount for the period you're calculating (paycheck, monthly, or annual).