How to Pay Your Arizona State Income Tax
Where Arizona income tax payments go and how they move
Arizona income tax goes to the Arizona Department of Revenue, not to your employer or a third party. The state collects it three ways: through withholding from your paycheck (if you told your employer to hold it), through quarterly estimated payments if you're self-employed or have income without withholding, or as a lump sum when you file your return. Money moves by ACH bank transfer, check, or credit card, depending on which method you choose.
If you're an employee and your employer withholds tax, that money leaves your paycheck and goes directly to the state on a schedule set by the IRS and Arizona. You don't send it yourself. If you're self-employed, a contractor, or have investment income, you usually need to send quarterly payments on your own—otherwise you may owe a penalty when you file, even if you end up with a refund.
The state's tax year runs January 1 through December 31, the same as the federal year. Your return is due April 15 unless you request an extension. If you owe money when you file, you can pay it with your return or set up a payment plan with the state.
Key Takeaways
- Arizona income tax payments go to the Arizona Department of Revenue through withholding, quarterly estimated payments, or when you file your return.
- If you're self-employed or have income without withholding, you must send quarterly estimated payments by the 15th of April, June, September, and January to avoid penalties.
- You can pay by ACH transfer, check, or credit card through the Arizona Department of Revenue website or by mail.
- If you owe tax when you file, you can pay in full by the April 15 deadline or request a payment plan that spreads the debt over several months.
- Late payments accrue interest at the rate set by Arizona law, plus a failure-to-pay penalty that starts at 5 percent of the unpaid tax.
How to send a quarterly estimated payment if you're self-employed
Quarterly estimated payments are due on the 15th of April, June, September, and January. You calculate what you think you'll owe for the whole year, divide by four, and send that amount each quarter. The Arizona Department of Revenue has a worksheet on its website to help you estimate, or you can use your prior-year tax return as a starting point if your income is stable.
To send a quarterly payment, go to the Arizona Department of Revenue website and use their online payment system. You'll need your Social Security number or federal employer ID number, your Arizona tax ID (if you have one), and a bank account for ACH transfer or a credit card. ACH transfers are free; credit card payments charge a processing fee. You can also mail a check to the address listed on the Department of Revenue website, but mail takes longer and you risk missing the deadline.
If you miss a quarterly deadline, send the payment as soon as you can. The state will charge interest from the due date forward, but paying late is better than not paying at all. When you file your annual return, the state will credit all four quarterly payments toward what you owe.
Paying tax when you file your annual return
When you file your Arizona return by April 15, the state calculates what you owe based on your income and credits. If you had taxes withheld from paychecks or sent quarterly payments, those amounts reduce what you owe. If the total is zero or negative (meaning you overpaid), you get a refund. If you owe money, you have three options: pay in full by April 15, request an extension to file (which gives you until October 15 to file but not to pay), or set up a payment plan.
To pay with your return, use the Arizona Department of Revenue website, mail a check, or use a tax software that lets you pay directly. Credit card payments are accepted but charge a fee. If you file an extension, you still owe the tax by April 15—the extension only delays filing the return itself, not payment.
If you can't pay the full amount by April 15, contact the Arizona Department of Revenue before the deadline to request a payment plan. The state offers short-term plans (30 to 120 days) and long-term installment agreements. Interest and penalties continue to accrue on the unpaid balance, so the longer you take to pay, the more you'll owe in total.
What happens if you pay late or miss a deadline
Late payments accrue interest at a rate set by Arizona law, which changes quarterly. As of 2024, the rate is 8 percent per year, but check the Arizona Department of Revenue website for the current rate. On top of interest, you'll owe a failure-to-pay penalty that starts at 5 percent of the unpaid tax and can reach 25 percent if the debt remains unpaid for a long time.
If you miss a quarterly estimated payment deadline, the penalty applies to that quarter's payment. If you file your return late, the state charges a failure-to-file penalty in addition to the failure-to-pay penalty. The sooner you pay, the less penalty and interest you'll owe. If you're facing a hardship and can't pay, contact the Arizona Department of Revenue to discuss your options—the state sometimes grants penalty relief in cases of genuine hardship, but you have to ask.
ACH transfers, checks, and credit card payments explained
ACH transfer is the fastest and cheapest way to pay. You authorize the Arizona Department of Revenue to pull money directly from your bank account on a date you choose. The transfer usually clears within one to two business days. There's no fee. You can set this up through the Department of Revenue website or by phone.
Check payments take longer because mail is slow. Write your check to "Arizona Department of Revenue," include your Social Security number or tax ID on the check, and mail it to the address on the Department of Revenue website. The state considers the payment made on the date they receive it, not the date you mail it, so send it early if you're close to a deadline. Keep a copy of the check or take a photo of the front and back for your records.
Credit card payments are accepted through the Department of Revenue website, but a third-party processor charges a fee—usually 2 to 3 percent of the payment amount. This fee is not tax-deductible and comes out of your pocket on top of what you owe the state. Use a credit card only if you have a specific reason (like earning rewards points) that justifies the extra cost.
Setting up a payment plan if you can't pay in full
The Arizona Department of Revenue offers two types of payment plans: short-term and long-term. A short-term plan lets you pay in installments over 30 to 120 days. A long-term installment agreement spreads payments over a longer period, sometimes several years. Both require you to contact the state before or immediately after the deadline.
To request a plan, call the Arizona Department of Revenue or use their website to submit a request. You'll need to provide information about your income, expenses, and assets so the state can decide what monthly payment you can afford. The state will propose a payment amount and schedule. Interest and penalties continue to accrue on the unpaid balance, so the longer the plan, the more you'll pay in total.
If you fall behind on a payment plan, the state can cancel the agreement and pursue collection action, which may include wage garnishment or a lien on your property. If your financial situation changes and you can't make the payments, contact the Department of Revenue immediately to renegotiate or discuss other options.
Frequently Asked Questions
What if I move out of Arizona—do I still owe Arizona income tax?
You owe Arizona income tax only on income you earned while you were an Arizona resident. Once you move and establish residency elsewhere, you don't owe Arizona tax on new income. However, you must file a final Arizona return for the year you moved to report income earned through your move date. Contact the Arizona Department of Revenue to confirm your residency status if you're unsure.
Can I pay my Arizona tax with a payment plan if I also owe federal tax?
Yes. Arizona and the IRS are separate, so you can have a payment plan with each one independently. Contact the Arizona Department of Revenue about an Arizona plan and the IRS about a federal plan. Payments to one don't reduce what you owe the other.
What if I filed my return but forgot to pay the tax I owed?
Contact the Arizona Department of Revenue as soon as you realize the mistake. Pay what you owe plus interest and any penalties that have accrued. The longer you wait, the more interest and penalties you'll owe. The state may also send you a notice demanding payment; if you receive one, respond promptly.
Do I need to make quarterly estimated payments if I'm retired and only have Social Security?
No. Social Security is not taxable income in Arizona for most retirees. If your only income is Social Security, you don't owe Arizona income tax and don't need to make quarterly payments. If you have other income (like a pension, investment income, or part-time work), you may owe tax on that portion.
Can I pay my Arizona tax by phone?
You can call the Arizona Department of Revenue to set up a payment plan or ask questions, but you'll need to pay through their website, by mail, or by ACH transfer. The state doesn't accept payment over the phone directly.