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AZ Flat 2.5% — Among the Lowest

Arizona Paystub Generator

Generate professional Arizona paystubs with the state's ultra-low flat 2.5% income tax calculated automatically. One of the lowest rates in the nation — no brackets, no complexity.

Starting at $8.99 • AZ state tax calculated automatically

Arizona's Ultra-Low Flat Tax Rate

Arizona's 2.5% flat rate is lower than nearly every state with an income tax — making it one of the most competitive tax environments in the country.

AZ State Tax

2.5%

Flat rate for all income

Federal Income Tax

10–37%

Progressive brackets

FICA (SS + Medicare)

7.65%

6.2% + 1.45%

Why Arizona's Payroll Is Simple

Fewer deductions, no local taxes, and one of the lowest state rates in the nation

Ultra-Low Flat Tax

At 2.5%, Arizona has one of the lowest income tax rates of any state with an income tax — only North Dakota is comparable.

No Local Taxes

Arizona has zero municipal or county income taxes, keeping payroll simple across Phoenix, Tucson, and every AZ city.

No State Disability

No SDI or PFL deductions — Arizona paystubs have fewer line items than most states, simplifying payroll processing.

Fastest-Growing State

Arizona's booming population (Phoenix metro is the 5th largest in the US) means growing demand for payroll documentation.

What's on an Arizona Paystub

Professional paystubs with all the information Arizona employees and employers need

Employee & employer information
Pay period dates
Gross wages breakdown
Federal income tax withholding
Arizona state income tax (2.5%)
Social Security (6.2%)
Medicare (1.45%)
Voluntary deductions (401k, insurance)
Year-to-date totals
Net pay amount

Arizona Deduction Breakdown

Federal Income Tax

10–37%

Based on income

Arizona State Tax

2.5%

Flat rate

FICA (SS + Medicare)

7.65%

6.2% + 1.45%

No local taxes, no SDI, no PFL — Arizona paystubs are among the simplest in the nation

Arizona vs Other States

See how Arizona's total state tax burden stacks up against the competition

Arizona

2.5%

Flat rate

~2.5% total state

California

up to 13.3%

+ SDI

Much higher

New York

up to 10.9%

+ NYC tax

Much higher

Texas / Florida

0%

No income tax

Lower

Paystubs for All Arizona Cities

Our Arizona paystub generator works for employers and employees across the Grand Canyon State

Phoenix
Tucson
Mesa
Chandler
Scottsdale
Glendale
Gilbert
Tempe
Peoria
Surprise
Yuma
Flagstaff

Arizona Paystub FAQ

What is Arizona's state income tax rate?

Arizona has a flat 2.5% state income tax rate, effective since 2023. This replaced the previous progressive brackets (2.55%-2.98%). The 2.5% flat rate applies to all taxable income, making Arizona one of the most tax-friendly states with an income tax.

Are Arizona employers required to provide paystubs?

Arizona does not have a specific statute mandating detailed itemized paystubs like California or New Jersey. However, employers must comply with federal FLSA record-keeping requirements, and providing detailed paystubs is considered best practice to avoid wage disputes.

Does Arizona have local income taxes?

No. Arizona has no city, county, or municipal income taxes. The only income tax on Arizona paystubs is the flat 2.5% state tax plus federal taxes. This makes AZ payroll significantly simpler than states like Pennsylvania or Ohio.

How does Arizona's tax rate compare to other states?

Arizona's 2.5% flat rate is among the lowest in the nation for states with an income tax. Only North Dakota (~1.95% top rate) is clearly lower. It's dramatically less than California (13.3% top), New York (10.9%), and New Jersey (10.75%).

Does Arizona have state disability or family leave deductions?

No. Arizona does not have a state disability insurance (SDI) program or mandatory paid family and medical leave deductions. Arizona paystubs only show federal income tax, state income tax (2.5%), Social Security, and Medicare.

What is Arizona's minimum wage?

Arizona's minimum wage is approximately $14.70/hour for 2026, as AZ indexes its minimum wage to inflation annually. Some cities like Flagstaff have higher local minimums. The state minimum wage is set by the Fair Wages and Healthy Families Act.

Create Your Arizona Paystub

Professional paystubs for the Grand Canyon State with Arizona's ultra-low 2.5% flat tax applied automatically.

Generate AZ Paystub

Starting at $8.99 • AZ state tax calculated automatically