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Arizona Income Tax Withholding and AdministrationGeneral Withholding Requirement: Arizona income tax must be withheld from wages paid for services performed in Arizona by residents and nonresidents. Employee Withholding Exemption Forms: Arizona Form A-4 must be completed by each employee, to determine the appropriate level of state income tax to withhold from earnings. Of course, Federal Form W-4 also must be completed by each employee, to determine the appropriate level of federal income tax to withhold from earnings. Reciprocal Agreements: None. However, a nonresident who performs services for an employer within Arizona may claim an exemption from withholding if (1) the employee is a resident of California, D.C., Indiana, Oregon, or Virginia, and (2) the employee anticipates having no Arizona tax liability because the employee can claim an Arizona tax credit for income taxes paid to the state of residency. Administration: Arizona Department of Revenue Local Tax Jurisdictions: None. |