1. What is the Arizona Salary Calculator?

The Arizona Salary Calculator estimates net pay after deducting federal tax, Arizona state tax (2.5%), and FICA contributions from gross salary. It provides an accurate assessment of take-home pay for Arizona residents.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Gross \) — Total salary before deductions
• \( Federal Tax \) — Federal income tax amount
• \( AZ State Tax \) — Arizona state tax at 2.5% of gross
• \( FICA \) — Social Security and Medicare taxes

Explanation: The calculation accounts for mandatory deductions including federal and state taxes, plus FICA contributions to determine actual take-home pay.

3. Importance of Net Pay Calculation

Details: Accurate net pay calculation is crucial for financial planning, budgeting, and understanding actual earnings after all mandatory deductions in Arizona.

4. Using the Calculator

Tips: Enter gross salary in dollars, federal tax amount, and FICA contributions. All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is Arizona's state tax rate?
A: Arizona has a flat state income tax rate of 2.5% for all income levels.

Q2: How is FICA calculated?
A: FICA consists of Social Security (6.2% on income up to the annual limit) and Medicare (1.45% on all earnings).

Q3: Are there additional deductions in Arizona?
A: Besides state tax, Arizona residents may have local taxes, but these are not included in this basic calculation.

Q4: What's the difference between gross and net pay?
A: Gross pay is total earnings before deductions, while net pay is the actual amount received after all taxes and deductions.

Q5: Can this calculator be used for hourly wages?
A: Yes, simply calculate the gross pay first (hours × rate) and then use that amount in the calculator.