The Arizona Department of Revenue revised Form A-4 for 2023 to account for the new flat state income tax of 2.5%. Previous versions of the form are not valid for withholding calculations as of January 1, 2023. There is no penalty for employees who did not update the form, however you should give your employer an updated A-4 for accurate tax withholding.
Our guide will help you understand the form’s purpose, when to complete it, what happens if you don’t submit one, and how to complete each step. It also includes answers to frequently asked questions about Form A-4, helping you avoid common errors you could be making.
Arizona Form A-4 allows you to select the percentage of your paycheck your employer will set aside to cover your Arizona income taxes.
Form A-4 is the Arizona equivalent of the federal Form W-4 issued by the IRS. If you live and work in Arizona you must submit both Arizona Form A-4 and the IRS Form W-4 to your employer. If you need help filling out your federal W-4, check out our comprehensive Form W-4 guide.
According to the AZDOR , you need to fill out a A-4 if:
Form A-4 allows you to select a withholding percentage from your gross taxable wages, from 0.5% to 3.5%. You may also elect to have additional money withheld from your paychecks.
The higher the percentage, the more money the employer withholds for Arizona income taxes, increasing your chances of receiving a refund when filing your income tax return. Withholding a lower percentage lets you increase your after-tax pay but increases the risk of under-withholding and exposes you to penalties for underpayment .
In most cases, you only need to fill out an A-4 once. The income tax withholding rate you elected will continue to apply, except in three cases:
You can find the most current A-4 form and instructions on the official website of the Arizona Department of Revenue .
According to AZDOR, you must submit the completed form within five days of your hiring date to your employer.
If you fail to submit form A-4, your employer must withhold taxes without any exemptions at the default rate of 2.0%. Your employer will continue to withhold at 2.0% until you submit a completed Form A-4.
Your employer is still required to give you a paycheck even if you don’t submit the form.
The best way to determine the withholding percentage to elect on your Arizona Form A-4 is to follow the withholding calculations worksheet on the AZDOR website. The worksheet is not part of Form A-4.
Follow this step-by-step guide to calculate the best percentage for your situation.
Determine your annual gross taxable wages. Arizona law assumes wages defined for federal tax purposes are the same as those used for state income tax purposes.
Example: Sarah determines her annual gross taxable wages are $60,000, so she enters $60,000 in Step 1.
Calculate the number of paychecks you receive annually and enter the result in Step 2. For instance, if you are paid monthly, you should receive 12 checks, whereas if you are paid weekly, the result should be 52.
Example: Sarah is paid monthly, meaning she receives 12 paychecks annually. She enters 12 in Step 2.
Divide the value in Line 1 by the value in Line 2 to obtain your wages per paycheck. Enter the result in Line 3.
Example: Sarah receives $60,000 yearly across 12 paychecks. 60,000 / 12 = $5,000. She enters 5,000 in Line 3.
Refer to the latest version of Arizona Form 140 , Arizona Resident Personal Income Tax Booklet to find your annual withholding goal.
If your total taxable income (wages + other sources) is less than $50,000, use the Optional Tax Tables on Page 51 . If your total taxable income is $50,000 or more, use the Arizona Tax Tables X and Y.
My total taxable income is under $50,000
Find the row corresponding to your annual income on the Optional Tax Tables, then refer to the column corresponding to your filing status. Use the third column if you are single or married and filing separately. Use the fourth column instead if you are married and filing jointly or filing as head of household. The value corresponding to your filing status and income level is your annual withholding goal.
For example, if you are single and your annual income is $42,330, you must refer to the row for incomes between $42,300 and $42,350. As a single taxpayer, you’ll use the third column. The corresponding value is 1,138. Your annual withholding goal is $1,138.
My total taxable income is over $50,000
If you are single or married and filing separately, use Tax Table X. If you are married and filing jointly or filing as a head of household, use Tax Table Y.
Example: Sarah is single and earns $60,000 of total taxable income annually. She must use Table X to calculate her annual withholding goal. 60,000 – 28,653 equals 31,347. 2.98% of that is 934.14. When adding 731, the result is 1,665.14. Sarah’s withholding goal is $1,665.14. She must enter this value in Line 4.
