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New Arizona tax rates in effect January 2023

AAA

Changes are coming to Arizona taxes in 2023. The Arizona legislature passed Senate Bill 1828 in 2021, reducing Arizona individual tax rates. As a result of the reduced tax rate, the Arizona Department of Revenue has revised the A-4P form for individuals to elect the rate at which withholdings are calculated.

PSPRS will not be making changes to retirees current withholdings. Retirees should consult with a tax attorney to determine if a change to their withholding is advised. PSPRS cannot provide tax advice.

To make changes, retirees will need to complete the 2023 A-4P withholding form and submit to [email protected]. The new form is available on the Forms & Resources page under Common Change Forms. Forms received by the 10th of the month, will be processed and effective that month. If a retiree does not file a new, 2023 A-4P form, PSPRS will continue to withhold taxes at the last rate elected by the retiree.