Arizona Bonus Tax Calculator 2026

Your A-4 percentage is your bonus rate

Arizona does not have a supplemental rate at all. Its withholding is simply a percentage of gross taxable wages that each employee picks on Form A-4: 0.5%, 1.0%, 1.5%, 2.0%, 2.5%, 3.0% or 3.5%, or zero if they expect no Arizona liability. A bonus is wages, so it gets the same percentage as every paycheck. Employees who never turn in an A-4 are withheld at the 2.0% default — $100.00 on a $5,000 bonus.

The spread is wide: the same $5,000 bonus carries $25.00 of Arizona withholding at 0.5% and $175.00 at 3.5%.

Annual renewal of a zero election

Electing zero withholding is allowed only if you expect no Arizona tax for the year, and the election lapses: a new A-4 must reach the employer by February 15 of the following year or the employer reverts to 2.0%. A bonus paid early in a year after a lapsed election is withheld at 2.0% ($100.00 here), not zero ($0.00).

Who Arizona withholds from

The Department of Revenue's employer instructions require withholding for Arizona residents working in Arizona and for nonresidents in the state 60 or more days a year performing services for the employer. A nonresident below that threshold can still elect withholding with Form A-4.