Arizona Wage Calculator
Use this calculator to estimate your net take-home pay in Arizona, considering federal and state taxes, FICA contributions, and common deductions. This tool provides a detailed breakdown of your paycheck based on your gross annual salary and filing status.
Understanding Your Arizona Paycheck
Navigating your paycheck can be complex, especially with various federal and state deductions. This Arizona Wage Calculator helps demystify the process by breaking down your gross pay into its net components.
Gross Pay
Your gross pay is your total earnings before any deductions are taken out. This is the amount you agree upon with your employer, whether it's an annual salary or an hourly wage multiplied by hours worked. The calculator starts with your gross annual salary and divides it by your chosen pay frequency (e.g., weekly, bi-weekly, monthly) to determine your gross pay per period.
Pre-Tax Deductions
Pre-tax deductions are amounts taken from your gross pay before taxes are calculated. These deductions reduce your taxable income, meaning you pay less in federal and state income taxes. Common examples include contributions to a 401(k) retirement plan, health insurance premiums, and Flexible Spending Accounts (FSAs).
FICA Taxes (Social Security & Medicare)
FICA stands for the Federal Insurance Contributions Act, which funds Social Security and Medicare. These are mandatory federal taxes:
- Social Security: As of 2024, the Social Security tax rate is 6.2% on earnings up to an annual limit of $168,600.
- Medicare: The Medicare tax rate is 1.45% on all earned income, with no income limit.
Your employer also pays an equal amount for FICA taxes on your behalf.
Federal Income Tax
Federal income tax is a progressive tax, meaning higher earners pay a larger percentage of their income in taxes. The amount withheld from your paycheck depends on your gross income, pre-tax deductions, and your filing status (Single, Married Filing Jointly, Head of Household). The calculator uses the standard deduction and federal tax brackets for the current tax year (2024) to estimate your federal tax liability.
Arizona State Income Tax
Arizona has simplified its state income tax structure. For the 2024 tax year, Arizona implements a flat tax rate of 2.5% on taxable income. This means that regardless of your income level, the same percentage is applied to your income after certain deductions. For the purpose of this calculator, your Arizona taxable income is generally your gross annual salary minus any pre-tax deductions.
Post-Tax Deductions
Post-tax deductions are taken from your pay after all taxes have been calculated and withheld. These deductions do not reduce your taxable income. Examples include contributions to a Roth 401(k), union dues, charitable contributions, or garnishments.
Net Pay
Your net pay, or take-home pay, is the amount remaining after all federal, state, and local taxes, as well as all pre-tax and post-tax deductions, have been subtracted from your gross pay. This is the actual amount you receive in your bank account or as a physical check.
Example Calculation:
Let's consider an individual in Arizona with the following details:
- Gross Annual Salary: $60,000
- Pay Frequency: Bi-weekly (26 pay periods per year)
- Federal Filing Status: Single
- Annual Pre-Tax Deductions: $3,000 (e.g., 401k contributions)
- Annual Post-Tax Deductions: $0
Based on these inputs, here's an estimated breakdown of a single bi-weekly paycheck:
- Gross Pay per Period: $2,307.69
- Pre-Tax Deductions per Period: $115.38
- FICA Taxes per Period: $176.54
- Federal Income Tax per Period: $186.77
- Arizona State Income Tax per Period: $54.81
- Post-Tax Deductions per Period: $0.00
- Estimated Net Pay per Period: $1,774.19
This example illustrates how various deductions impact your final take-home pay. Remember that this calculator provides estimates, and actual withholdings may vary based on specific circumstances, additional deductions, or changes in tax laws.