Arizona Nanny Tax Guide
Arizona has a simple flat income tax of 2.5%, making tax calculations straightforward for household employers. Combined with no disability or family leave requirements, it's relatively simple to manage.
Minimum Wage
$14.70/hour
SUTA Rate Range
0.08% - 20.3%
Key Things to Know
- Flat state income tax rate of 2.5%
- State minimum wage is $14.70/hour
- No disability or paid leave requirements
- Simple flat tax makes withholding easier
Arizona Employer Requirements
State Income Tax
Arizona uses a flat 2.5% income tax rate on all taxable income. This makes calculating withholding straightforward compared to states with progressive brackets.
State Unemployment Insurance
Employers pay SUI tax on the first $8,000 of wages. New employer rate is 2.0%, with rates ranging from 0.08% to 20.3% based on experience.
Workers' Compensation
While not mandatory for household employers with fewer than 3 employees, workers' comp coverage is recommended to protect both you and your employee.
What will it cost?
Wondering what you'll actually owe as a Arizona employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.
This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.
Learn More
Nanny Tax Calculator
See exactly what you'll owe in taxes for your situation.
2026 Tax Deadline Calendar
All quarterly deadlines for Arizona and federal taxes.
Complete Guide to Nanny Taxes
Everything you need to know about household employment taxes.
Nanny Cost by State
Compare Arizona employer costs to all 50 states.
NannyKeeper handles Arizona taxes automatically
We calculate and track all state-specific requirements so you don't have to.
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