Arizona Withholding

Q. I’m using PaycheckCity.com to estimate my paycheck after moving to Arizona. What’s up with the percentage stuff? Why is there no filing status and allowance values like everyone else?

A. I wish I could tell you why Arizona withholds like it does. Employers in Arizona calculate withholding as a percentage of federal withholding. This is the last state that bases it’s withholding on the federal calculation. In past years as federal withholding as decreased for many people. As federal withholding declines so does state withholding if Read more »