Short answer. DES: "Taxable wages are the first $8,000 of gross wages paid to each employee each year" (the limit was $7,000 for wages paid before January 1, 2023). The page sets no end date, so 2027 is $8,000. New employers pay 2%.
$8,000
taxable wages per employee for 2027
Unemployment tax at a glance
- 2027 wage base
- $8,000 (unchanged)
- 2026 wage base
- DES: employers are required by law to pay UI tax on the first $8,000 of each employee's wages in a calendar year (since 2023, Senate Bill 1828).
- New employer rate
- 2%. 2.00% per the DOL table; DES's rate charts also list a 2.00% new employer rate.
- Rate range
- 0.03%–8.36% (2026). US DOL table, effective January 2026.
- Employee share
- None for unemployment insurance on the pages we read
- Agency
- Arizona Department of Economic Security
- Registration
- Register or open an account. DES: register with both the Department of Revenue and DES on the Arizona Joint Tax Application (JT-1/UC-001), sent to DOR's License & Registration Section, which forwards a copy to DES.
What it costs: an example
Three employees at the new employer rate of 2% on the $8,000 base, with wages paid evenly through 2027. FUTA is 0.6% of the first $7,000. The employee share, if any, isn't included.
Hiring in another state? Employer registration in Arizona, done for you, or a free bookkeeping health check.
| Employee | Annual wages | SUTA | Base reached | FUTA |
|---|---|---|---|---|
| Part time | $3,000.00 | $60.00 | Not reached | $18.00 |
| Around the base | $8,000.00 | $160.00 | Q4 | $42.00 |
| Above the base | $14,000.00 | $160.00 | Q3 | $42.00 |
Total for the three: $380.00 state plus $102.00 federal. Run your own staff in the SUTA and FUTA calculator set to Arizona.
Quarterly reports and payments
| Quarter | Wages paid | Due |
|---|---|---|
| Q1 | January–March | April 30 |
| Q2 | April–June | July 31 |
| Q3 | July–September | October 31 |
| Q4 | October–December | January 31 (next year) |
DES: April 30, July 31, October 31 and January 31; a weekend or state holiday moves it to the next business day.
Setting up the account for 2027
- Register for an unemployment tax account: DES: register with both the Department of Revenue and DES on the Arizona Joint Tax Application (JT-1/UC-001), sent to DOR's License & Registration Section, which forwards a copy to DES.
- Set the 2027 wage base of $8,000 in payroll.
- Use 2% until your rate notice arrives; then enter the notice rate for the year.
- Put the four report dates (April 30, July 31, October 31, January 31) on the calendar.
- Keep each rate notice and wage base change with your payroll records; FUTA's 5.4% credit depends on paying the state tax on time.
Official sources
- Arizona DES: Unemployment Insurance Tax, taxable wage increase
- Arizona DES: Unemployment tax and wage report due dates
- Arizona DES: Registering a business for unemployment insurance
- Arizona DES: Unemployment tax, taxable wages
- US Department of Labor: Significant Provisions of State Unemployment Insurance Laws, effective January 2026
- US Department of Labor: FUTA Credit Reductions (page updated September 11, 2026)
- US Department of Labor: 2026 State Unemployment Insurance Trust Fund Solvency Report (February 2026)
- IRS: FUTA credit reduction (page last reviewed September 8, 2026)
General information, not tax or legal advice. Checked November 2026 against the official pages above. States set each employer's own rate every year, and a base or rate can change after we check. Use the rate on your state notice, and confirm with the state agency, your payroll provider or a tax professional before you file. MCC Solutions isn't affiliated with any government agency.
Arizona unemployment tax questions
What is the Arizona unemployment tax wage base for 2027?
$8,000 per employee, the same as 2026. DES: "Taxable wages are the first $8,000 of gross wages paid to each employee each year" (the limit was $7,000 for wages paid before January 1, 2023). The page sets no end date, so 2027 is $8,000.
What SUTA rate does a new employer pay in Arizona?
2%. 2.00% per the DOL table; DES's rate charts also list a 2.00% new employer rate. On a full $8,000 base that's $160.00 per employee for the year.
When are Arizona quarterly unemployment reports due?
first quarter April 30, second quarter July 31, third quarter October 31, fourth quarter January 31. DES: April 30, July 31, October 31 and January 31; a weekend or state holiday moves it to the next business day.
What is the range of Arizona unemployment tax rates for 2026?
0.03%–8.36% of taxable wages. US DOL table, effective January 2026. An established employer's own rate is on the notice the state mails each year; at the top rate one employee on a full $8,000 base costs $668.80.
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