ADOR is aware that some small business income taxpayers received a billing notice even though their overpayment individual income tax return is larger than the tax due small business income return. Please be advised that the Department is working to resolve the issue as soon as possible.
Customer Notice: To schedule an appointment, please contact us at [email protected].
Phoenix, AZ—Check your withholding amount to avoid a surprise at tax time. Too little withheld means a bigger paycheck but a smaller refund or even tax due. Too much can mean you won’t have use of the money until you receive a tax refund.
When to Check or Change Your Withholding
How to Change Your Withholding
To change the amount of Arizona income tax withheld, you must complete Arizona Form A-4 and submit it to your employer to choose a different withholding percentage option. For information about federal withholding, please see federal Form W-4. Taxpayers should consider the facts of their situation and adjust the election accordingly.
The Withholding Calculator helps identify your tax withholding to ensure you have the right amount of tax withheld from your paycheck. Taxpayers can use the results from the calculator to help complete Form A-4 and adjust the income tax withholding.
Keep in mind that the calculator’s results will only be as accurate as the information you provide. If your circumstances change during the year, recalculate with the new information to make sure that your withholding is still correct.
Note: Underwithholding can result in you owing tax and/or underpayment penalties when you file your Arizona return. Zero withholding does not relieve you from paying Arizona income taxes that might be due when you file your Arizona income tax return.
Withholding Percentage Options
Rates are a percentage of the gross taxable wages. Taxpayers can select 0.8%, 1.3%, 1.8%, 2.7%, 3.6%, 4.2%, or 5.2%.
*For 2023, taxpayers can select 0.5%, 1.0%, 1.5%, 2.0%, 2.5%, 3.0%, or 3.5%.
Tuesday, June 14, 2022