Arizona's 2020 Unemployment Taxable Wage Base Increases

11-07-2022Tax Information

In 2021, Governor Doug Ducey signed Senate Bill 1828, which increased the maximum taxable wages from $7,000 to $8,000 for Unemployment Insurance (UI) compensation purposes, effective calendar year 2023. This legislation also made other changes to the UI program, including additional program integrity requirements. 

Beginning January 1, 2023, businesses will be required to pay UI taxes on the first $8,000 (an increase from $7,000) in gross wages paid to each of your Arizona employees. 

The increase will be in effect when you file your quarterly Unemployment Tax and Wage Report for the quarter ending March 31, 2023, for wages paid during January, February, and March of 2023. 

The increase to the taxable wage base does not impact wages paid to your employees during calendar year 2022. 

For additional information, including general information about Arizona's UI Tax program, please visit www.azuitax.gov or call (602) 771-6606.