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Californiaworking inArizona
Reciprocity — home state withholds for you

Arizona

Work State Tax Rate
Flat 2.5%
Withholding Starts
After 60 days
Law Last Updated
Jan 1, 2023

Employee Obligations (Which Returns YOU Must File)

California has a reciprocity agreement with Arizona. If your only income from Arizona is wages, salary, tips, or commissions, file your California return only — no Arizona return needed. Give your Arizona employer your reciprocity form each year.

Employer Obligations (What Your Employer Must Withhold & Remit)

Reciprocity applies. If the employee provides the reciprocity form, withhold California tax instead of Arizona tax. Must still register for Arizona unemployment insurance. Register for withholding and unemployment. Unemployment is approximately 2.0% on the first $8,000 of wages.

Reciprocity Agreement — File Home State Only for Wages

California has a reciprocity agreement with Arizona. For wage income, you only need to file your California return.

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Related guides

Employer/Withholding Source: https://azdor.gov/business/withholding-tax
Row last reviewed: Apr 17, 2026Home state credit form: Schedule S

This is general information, not tax or legal advice. Laws change frequently. Always consult a licensed CPA or tax attorney for your specific situation. All information researched as of March 21, 2026.