The chart also shows if the state has a flat tax rate, meaning, only one rate of tax applies regardless of the wages paid or alternatively, the highest marginal withholding rate according to the state's latest computer withholding formula.Ģ020 state tax tables and supplemental withholding rates* (as of January 15, 2020)Ĭhanges from 2019 are highlighted in yellow. The state supplemental income tax withholding rates currently available for 2020 are shown in the chart below. For instance, consider if the supplemental withholding rate is significantly higher or lower than the withholding result using the applicable marginal withholding rate. Where allowed, the supplemental rate greatly simplifies income tax withholding calculations on irregular payments such as bonuses, equity compensation and separation pay.Įven if a supplemental rate of withholding is an option, employers should consider any potential impact of over- or under-withholding. Similar to the federal supplemental income tax withholding rate, most states also allow for an optional flat percentage of income tax withholding for wages that are in addition to regular pay. This mandatory 37% rate applies even if the employee has submitted a federal Form W-4 claiming exemption from federal income tax withholding. If the employee's supplemental wages exceed $1 million in the year, a mandatory flat rate of 37% applies to supplemental wages over $ 1 million. Withholding on supplemental/nonperiodic wage paymentsįor federal income tax withholding purposes, employers may optionally use a flat rate of 22% on supplemental wages up to $1 million for the year, provided federal income tax was withheld from regular wages in the previous or current year. New this year, the chart also shows essential withholding rate information for use in evaluating the most appropriate calculation method when making nonperiodic payments to employees.
#ARIZONA 2015 TAX BRACKET PERCENTAGES UPDATE#
If the effective date shown in the chart is prior to 2020 and the last column (2020 withholding guide/tables pending?) is "no," we have confirmed with the state that no update is expected for 2020. Reference the column "Revision date" to identify the last year the publication was updated. To assist you in reviewing your state income tax withholding rates for 2020, on the following pages is a chart of the most recent income tax withholding tables published by states and US territories. State income tax withholding tables and supplemental rates for 2020
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