Employer payroll taxes in Arizona for 2026
On top of each paycheck, a Arizona employer pays these taxes. None of them come out of the employee's pay. On a $60,000 salary they add $4,792.00 a year, so the employee costs $64,792.00.
| Employer tax | Rate | Wages taxed |
|---|---|---|
| Social Security | 6.2% | First $184,500 |
| Medicare | 1.45% | No limit |
| Federal unemployment (FUTA) | 0.6% | First $7,000 |
| Arizona unemployment (SUTA) | 2% for new employers | First $8,000 |
Arizona unemployment tax (SUTA)
Arizona employers pay state unemployment tax on the first $8,000 of each employee's wages in 2026. A new employer starts at 2%, and experienced employers pay from 0.03% to 8.36% depending on their layoff history.
New employers pay 2% for at least their first two calendar years.
What an employee costs in Arizona
Yearly employer taxes and total cost for a single filer paid every two weeks, at the new-employer unemployment rate, for an employer with 10 employees. Benefits and workers' compensation insurance are extra.
| Salary | Employer taxes | Total cost | Added to pay | Employee take-home |
|---|---|---|---|---|
| $30,000 | $2,497.00 | $32,497 | 8.3% | $25,685 |
| $40,000 | $3,262.00 | $43,262 | 8.2% | $33,520 |
| $50,000 | $4,027.00 | $54,027 | 8.1% | $41,355 |
| $60,000 | $4,792.00 | $64,792 | 8% | $49,190 |
| $75,000 | $5,939.50 | $80,940 | 7.9% | $60,093 |
| $100,000 | $7,852.00 | $107,852 | 7.9% | $77,180 |
| $125,000 | $9,764.50 | $134,765 | 7.8% | $94,204 |
| $150,000 | $11,677.00 | $161,677 | 7.8% | $110,791 |
Withholding from Arizona paychecks
From the employee's pay you withhold federal income tax under the W-4, 6.2% Social Security, 1.45% Medicare and Arizona income tax. Employees checking their own pay can use the Arizona paycheck calculator. Running a bonus? Use the bonus payroll calculator.
Arizona employer taxes compared with nearby states
The same $60,000 employee, at each state's new-employer unemployment rate. Of the states that border Arizona, Utah has the lowest employer taxes.
| State | State unemployment | All employer taxes | Total cost |
|---|---|---|---|
| Arizona | $160.00 | $4,792.00 | $64,792 |
| California payroll calculator | $245.00 | $4,982.00 | $64,982 |
| Colorado payroll calculator | $1,197.30 | $5,829.30 | $65,829 |
| Nevada payroll calculator | $1,311.00 | $5,943.00 | $65,943 |
| New Mexico payroll calculator | $348.00 | $4,980.00 | $64,980 |
| Utah payroll calculator | $0.00 | $4,632.00 | $64,632 |
Sources
Arizona unemployment and program rates come from the state's own 2026 figures: des.az.gov, des.az.gov, des.az.gov. Federal figures follow IRS Publication 15 and Publication 15-T. See how we calculate for the withholding method.