Arizona Income Tax Withholding Requirements
Employers in Arizona must conform with these state rules relating to income tax withholding and administration.
General Withholding Requirement: Arizona income tax must be withheld from wages paid for services performed in Arizona by residents and nonresidents. However, a nonresident who performs services for an employer within Arizona may claim an exemption from withholding if:
- the employee is a resident of California, Indiana, Oregon, or Virginia; and
- the employee anticipates having no Arizona tax liability because the employee can claim an Arizona tax credit for income taxes paid to the state of residency.
Employee Withholding Exemption Forms: Arizona Form A-4 must be completed by each employee, to determine the appropriate level of state income tax to withhold from earnings. Of course, Federal Form W-4 also must be completed by each employee, to determine the appropriate level of federal income tax to withhold from earnings.
Reciprocal Agreements: None.
Arizona Department of Revenue
1600 W. Monroe
Phoenix, Arizona 85007-2650