Arizona variant. This is a Arizona-specific version of the Workers Comp Cost Estimator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Workers Comp Cost Estimator.
Workers' compensation premiums in Arizona are priced per $100 of payroll, by job classification. On a $74,568 salary at an illustrative $1.00 rate, the annual premium is about $746.
How Arizona workers' comp is priced
Premium = (payroll ÷ 100) × class rate × experience modifier. Clerical roles carry low rates; construction and trucking carry much higher ones.
Arizona sets its own rules and rates. The calculator above lets you enter your real payroll, class rate, and mod factor for an accurate Arizona estimate.
About taxes and housing in Arizona
Arizona uses a flat individual income tax of 2.5%, one of the lowest flat rates in the nation.
Arizona keeps property taxes relatively low and limits how much a primary residence's taxable value can rise each year.
Arizona's economy is driven by technology, tourism, and rapid population growth, with a warm climate that attracts retirees and remote workers.
Worked example: $74,568 payroll
($74,568 ÷ 100) × $1.00 = $746/year at a sample clerical rate. A construction class rate of $8.00 would make it $5,965.
Quick reference
- State income tax: Flat 2.5% as of 2023
- State sales tax: 5.6% (plus 2.80% avg local)
- Median home value: $425,000
- Median household income: $74,568
- Effective property tax rate: 0.51%
- Avg auto insurance: $1,812/yr
Frequently Asked Questions
How is workers' comp calculated in Arizona?
By payroll ÷ 100 × class rate × experience modifier, using Arizona's approved rates.
Is workers' comp required in Arizona?
Most Arizona employers must carry coverage once they have employees; rules vary by industry and headcount.