Overtime Pay Calculator — Arizona (2026)
Overtime in Arizona starts with the federal FLSA floor: 1.5× your regular rate for every hour beyond 40 in a workweek. Some states add daily overtime or double-time rules on top. This calculator shows gross overtime pay and what survives federal, FICA and Arizona taxation in 2026. Arizona uses a flat personal income tax of 2.50% applied to taxable income after a state standard deduction of $16,100.
Arizona Overtime Pay Calculator
Your base pay per hour.
Hours beyond 40 in the workweek.
Overtime rules that apply in Arizona
Arizona follows the federal weekly standard: overtime is owed after 40 hours in a workweek, with no general daily overtime requirement.
The "regular rate" is not just your base hourly wage — non-discretionary bonuses, shift differentials and commissions must be folded in before multiplying by 1.5, which raises the true overtime rate for many tech workers around Phoenix.
Is overtime taxed more in Arizona?
No — overtime is ordinary wages. It can feel over-taxed because per-period withholding tables annualize a big check as if every week looked like that, temporarily withholding at a higher rate that you recover at filing.
The Arizona layer applies to overtime exactly as to base pay, at rates up to 2.50%.
Exempt vs non-exempt in Arizona
Salaried does not mean exempt. To be exempt from overtime a worker must clear both a salary threshold and a duties test; misclassification is one of the most common wage claims filed in Arizona.
Cost of living in Arizona sits 3% above the national average (index 103), median household income is $74,568, and a one-bedroom apartment in Phoenix rents for roughly $1,450 a month.
Local and payroll taxes Arizona adds on top
Arizona adds no state-mandated employee payroll deduction beyond FICA, so nothing extra is taken from your gross pay at the state level.
Arizona has no separate city or county income tax, so the state figure above is the full sub-federal income tax you pay.
Overtime hours carry exactly the same local withholding as regular Arizona hours; the extra pay is taxed at your marginal rates, not at a special penalty rate, even though the deduction line looks bigger.
Working across a state line from Arizona
Arizona holds income-tax reciprocity agreements with California, Indiana, Oregon and Virginia. If you commute between them, your wages are taxed only by your state of residence — file the exemption certificate with your employer so the wrong state is not withheld from every paycheck.
Remote and hybrid work complicates this further: most states tax income where the work is physically performed, so a Phoenix resident spending part of the year at a client site in Nevada may owe a nonresident return there. Keep a day-count log if you split time between states.
The rest of your Arizona tax bill
Arizona charges a 5.6% state sales tax, homeowners pay an average effective property tax of 0.62% of market value, and the minimum wage in force during 2026 is $15.15 an hour.
Combined transaction privilege tax averages about 8.4%.
Income tax is only one part of a state's take. Arizona recovers revenue through sales and property tax as well, which is why headline income tax rates alone are a poor guide to how far a salary really goes. Arizona exempts Social Security and up to $2,500 of federal, state and Arizona local pension income; other retirement income is taxed at the flat rate.
Arizona vs Nevada on the same salary
On a $75,000 salary, a single filer keeps about $60,120 a year in Arizona against roughly $61,593 in Nevada — a difference of $1,473, or $123 a month.
Effective combined rates are 19.8% in Arizona and 17.9% in Nevada. Set that gap against living costs: index 103 here versus 102 there, with property tax at 0.62% and 0.55% respectively.
Arizona income tax brackets 2026 (single filer)
| Taxable income | Rate |
|---|---|
| $0 and up | 2.50% |