Please note the following information regarding changes to Arizona State Income Withholding. 

Arizona is increasing the percentages of federal withholding that it will use for state withholding, effective May 1, 2009. The percentages will decrease, effective Jan. 1, 2010, through June 30, 2010, but will still be higher than the current percentages. Effective July 1, 2010, Arizona will withhold under tables issued by the Department of Revenue, rather than the current withholding system based on the taxpayer's federal withholding.

• Taxpayers now paying 10 percent will pay 11.5 percent, effective May 1, 2009, through Dec. 31, 2009, and 10.7 percent, effective Jan. 1, 2010, through June 30, 2010.

• Taxpayers now paying 19 percent will pay 21.9 percent, effective May 1, 2009, through Dec. 31, 2009, and 20.3 percent, effective Jan. 1, 2010, through June 30, 2010.

• Taxpayers now paying 23 percent will pay 26.5 percent, effective May 1, 2009, through Dec. 31, 2009, and 24.5 percent, effective Jan. 1, 2010, through June 30, 2010.

• Taxpayers now paying 25 percent will pay 28.8 percent, effective May 1, 2009, through Dec. 31, 2009, and 26.7 percent, effective Jan. 1, 2010, through June 30, 2010.

• Taxpayers now paying 31 percent will pay 35.7 percent, effective May 1, 2009, through Dec. 31, 2009, and 33.1 percent, effective Jan. 1, 2010, through June 30, 2010.

• Taxpayers now paying 37 percent will pay 42.6 percent, effective May 1, 2009, through Dec. 31, 2009, and 39.5 percent, effective Jan. 1, 2010, through June 30, 2010.