Arizona (AZ) State Tax Rate Changes For 2011
The Arizona Department of Revenue has revised Arizona Form A 4 effective for wages paid after December 31, 2010. The changes include:
- Providing an additional withholding percentage of 0.8%. Previously available percentages are unchanged.
- Removal of the $15,000 annual compensation threshold. All seven withholding percentage rates are available to all employees, regardless of annual compensation.
- Relaxing the exemption requirements. The employee only has to expect that there will be no Arizona tax liability in the current taxable year (instead of not having a liability in the prior year and not expecting one in the current year). However, this withholding exemption election will need to be renewed annually, similar to federal requirements.
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