The following state withholding (AZSWH) tax percentages are effective as of 1-1-2023 and are based on a percentage of federal earnings.  The following Arizona state withholding (AZSWH) tax percentages are effective from 1-1-2013 through 12-31-2022 and are based on a percentage of federal earnings. AZ Misc Tax Code | Percentage | 1 | 1.3% | 2 | 2.7% | 3 | 3.6% | 4 | 4.2% | 5 | 5.1% | 6 | 1.8% | 7 | .8% | |