The AZ Salary Calculator is a reliable tool that helps you estimate your net income after federal and state taxes, Social Security, and Medicare deductions. Whether you’re a full-time employee, freelancer, or contractor in Arizona, this calculator simplifies salary breakdowns to show your real take-home pay.
AZ Salary Calculator
Understanding your paycheck is key to financial planning. The Arizona Salary Calculator helps you see the difference between your gross income (before taxes) and your net income (after deductions).
Taxes and deductions in Arizona include:
- Federal income tax
- Arizona state income tax
- Social Security and Medicare (FICA)
- Possible retirement or insurance contributions
By using this calculator, you’ll get an accurate estimate of your after-tax pay, enabling better financial decisions and budgeting.
🧮 Formula Used in the Calculator
The AZ Salary Calculator uses tax formulas based on both federal and Arizona state tax laws.
1. Federal Tax Calculation
Federal tax is determined using the IRS tax brackets based on your filing status and income.
Formula:Federal Tax = (Taxable Income × Federal Tax Rate) - Tax Credit
2. Arizona State Income Tax
Arizona has a progressive income tax system, meaning tax rates increase as income rises.
Formula:Arizona State Tax = (Taxable Income × State Tax Rate)
- For 2025, Arizona’s flat income tax rate is 2.5%.
3. FICA Deductions
These are mandatory payroll deductions for Social Security and Medicare.
Formula:
Social Security = Gross Income × 6.2%Medicare = Gross Income × 1.45%
4. Net Pay (Take-Home Pay)
After calculating all deductions, your net pay is determined as:
Net Pay = Gross Salary - (Federal Tax + State Tax + FICA + Other Deductions)
⚙️ How to Use the AZ Salary Calculator
- Enter Gross Salary: Input your annual or hourly wage.
- Select Pay Frequency: Choose whether you are paid weekly, biweekly, or monthly.
- Choose Filing Status: Single, married, or head of household.
- Input Deductions (Optional): Add any pre-tax deductions like retirement or health insurance.
- Click “Calculate”: The calculator displays your estimated take-home pay instantly.
The results will show your net salary, total deductions, and effective tax rate for better insight.
💡 Example Calculation
Let’s see how it works with an example:
- Annual Salary: $70,000
- Filing Status: Single
- Pay Frequency: Monthly
Step 1: Federal Tax (approx.) = $8,400
Step 2: Arizona State Tax = $70,000 × 2.5% = $1,750
Step 3: FICA Deductions = $70,000 × 7.65% = $5,355
Total Deductions = $8,400 + $1,750 + $5,355 = $15,505
Net Salary = $70,000 – $15,505 = $54,495 annually
Monthly Take-Home Pay = $54,495 / 12 = $4,541.25
✅ Result: You take home around $4,541 per month after taxes in Arizona.
📘 Plain Text Formula Summary
- Federal Tax = (Taxable Income × Federal Rate) – Credits
- State Tax = Taxable Income × 2.5% (Arizona flat rate)
- FICA = (Gross Income × 6.2%) + (Gross Income × 1.45%)
- Net Pay = Gross Salary – (Federal + State + FICA + Deductions)
📊 Benefits of Using the AZ Salary Calculator
- Accurate breakdown of take-home pay
- Helps with salary negotiations
- Useful for budget and tax planning
- Reflects current Arizona tax rates
- Saves time and ensures accuracy
🧠 Helpful Insights
- Arizona’s flat tax rate of 2.5% makes it one of the simplest state tax systems in the U.S.
- Federal taxes vary based on your income bracket and filing status.
- FICA taxes are fixed percentages — 6.2% for Social Security and 1.45% for Medicare.
- Retirement contributions and insurance premiums can reduce your taxable income.
- Always check for the latest updates in Arizona tax regulations.
🧩 Example Scenarios
Example 1: Hourly Worker
- Hourly Rate: $25/hour
- Weekly Hours: 40
- Annual Salary: $52,000
- Take-Home Pay ≈ $40,800
Example 2: Married Couple
- Combined Income: $120,000
- Filing Jointly
- Take-Home Pay ≈ $95,000 after taxes
Example 3: High Earner
- Salary: $200,000
- Take-Home Pay ≈ $145,000 after federal, state, and FICA taxes
💬 20 Frequently Asked Questions (FAQs)
- What is the Arizona state income tax rate?
Arizona has a flat tax rate of 2.5% for all income levels. - Does Arizona have local income taxes?
No, Arizona does not charge local income taxes. - Are federal taxes included in this calculator?
Yes, federal tax is automatically applied based on IRS brackets. - Does this calculator include Medicare and Social Security deductions?
Yes, FICA deductions (7.65%) are included. - Can I calculate hourly wages?
Yes, you can input your hourly rate and weekly hours. - Is this calculator accurate for 2025?
Yes, it uses the latest 2025 Arizona tax data. - Does filing status affect the result?
Yes, single, married, and head of household statuses have different federal brackets. - Can I add pre-tax deductions like 401(k)?
Yes, adding them can reduce your taxable income. - How does Arizona’s flat tax work?
All taxpayers pay the same 2.5% rate regardless of income level. - Does Arizona tax Social Security benefits?
No, Social Security benefits are not taxed in Arizona. - Can I estimate biweekly take-home pay?
Yes, the calculator supports weekly, biweekly, and monthly pay periods. - Does it include health insurance deductions?
Optional pre-tax deductions can be added. - What if I work remotely for an Arizona company?
You may still owe Arizona state taxes if considered a resident. - Are bonuses taxed differently?
Bonuses are taxed as regular income but may face higher withholding initially. - Is overtime included?
Yes, if you include it in your gross salary. - Does it account for dependents?
Yes, federal tax credits may adjust based on dependents. - How do I calculate my annual salary from hourly pay?
Multiply hourly rate × weekly hours × 52. - Is Arizona a low-tax state?
Yes, Arizona has one of the lowest income tax rates in the U.S. - Can this calculator help with financial planning?
Yes, it’s useful for understanding your real disposable income. - Is the AZ Salary Calculator free to use?
Yes, it’s completely free and available online.
🏁 Conclusion
The AZ Salary Calculator is a powerful and simple tool that helps Arizona residents determine their actual take-home pay after all taxes and deductions. With accurate federal and state tax calculations, this calculator makes financial planning easier for everyone — from hourly workers to high-income earners.