How Arizona taxes bonuses
Arizona withholds a flat 2% state income tax on bonuses, on top of the federal 22%. Arizona withholds your A-4 percentage on bonuses too. 2% is the default when no A-4 is on file.
Federal withholding is the same in every state. Most employers take a flat 22% of the bonus (37% on supplemental pay over $1,000,000 in a year). Social Security takes 6.2% up to the yearly wage base and Medicare 1.45%. If your employer adds the bonus to a regular $2,500 paycheck instead, the aggregate method withholds about $1,150.54 of federal tax on a $5,000 bonus, against $1,100.00 with the flat rate.
Take-home pay on a bonus in Arizona
What is withheld from bonuses of different sizes, with the federal flat rate, for a single filer who has not yet reached the Social Security wage base this year.
| Bonus | Federal income tax | Social Security and Medicare | Arizona taxes | Take-home bonus | You keep |
|---|---|---|---|---|---|
| $1,000 | $220.00 | $76.50 | $20.00 | $683.50 | 68.3% |
| $2,500 | $550.00 | $191.25 | $50.00 | $1,708.75 | 68.3% |
| $5,000 | $1,100.00 | $382.50 | $100.00 | $3,417.50 | 68.3% |
| $10,000 | $2,200.00 | $765.00 | $200.00 | $6,835.00 | 68.3% |
| $25,000 | $5,500.00 | $1,912.50 | $500.00 | $17,087.50 | 68.3% |
| $50,000 | $11,000.00 | $3,825.00 | $1,000.00 | $34,175.00 | 68.3% |
Arizona bonus taxes compared with nearby states
The same $5,000 bonus, flat federal rate, in each state that borders Arizona. Of these, Nevada leaves the most of the bonus in your pocket.
| State | State bonus withholding | State taxes on the bonus | Take-home bonus |
|---|---|---|---|
| Arizona | 2% flat | $100.00 | $3,417.50 |
| California bonus tax calculator | 10.23% flat | $576.50 | $2,941.00 |
| Colorado bonus tax calculator | 4.4% flat | $242.00 | $3,275.50 |
| Nevada bonus tax calculator | No income tax | $0.00 | $3,517.50 |
| New Mexico bonus tax calculator | 5.9% flat | $295.00 | $3,222.50 |
| Utah bonus tax calculator | Regular tables | $222.50 | $3,295.00 |
More Arizona pay calculators
For your regular take-home pay, use the Arizona paycheck calculator. To see a bonus next to your regular paycheck, try the bonus paycheck calculator. Employers paying a bonus can use the bonus payroll calculator or the Arizona payroll calculator. The bonus tax calculator page compares every state.
Sources
Federal figures follow IRS Publication 15. Arizona bonus withholding comes from the state's own guidance: azdor.gov, azdor.gov. See how we calculate for the withholding method.