Skip to content

Arizona PTO payout calculator.

⚠ PTO payout in Arizona depends on your employment contract or company policy.

Enter your details

How are you paid?

$

Your full pay before taxes are taken out

Most full-time jobs are 40

How many PTO hours you have left. Check your latest pay stub.

This changes the legal advice below, not the dollar amount.

Enter your pay and unused PTO hours to download the report.

What you'll be paid

Payout before taxes

$0.00

Enter your pay and unused PTO hours to see what you'll get paid and how much goes to taxes.

Estimates only. Tax withholding may differ based on your full-year income, filing status, and deductions. Consult a tax professional for exact figures.

Disclaimer: Calculations are based on the 2026 IRS Supplemental Wage Rate (22% flat federal withholding) and current state labor department guidelines. Always consult an employment attorney for binding legal disputes.

Estimates only. PTO payout rights and tax withholding vary by state, employer policy, and individual circumstances. This is not legal, tax, or financial advice. Consult your state labor department or a qualified professional. See our methodology.

Researched & maintained by Yogesh Primary sources verified May 31, 2026

How much is a PTO payout in Arizona?

Your Arizona PTO payout equals accrued unused hours × your hourly rate. Payout depends on your employer's policy. Expect 22% federal withholding, about 2.5% Arizona tax, and 7.65% FICA.

Arizona PTO payout law, in plain English

Arizona requires payout only when company policy or contract promises it. Earned vacation treated as wages must then be paid.

Reference: Ariz. Rev. Stat. § 23-350. Use-it-or-lose-it policies are allowed in Arizona, and the statute of limitations for unpaid-wage claims is 1 year.

Caps, accrual rollover & penalties

Arizona permits reasonable annual caps and use-it-or-lose-it rollover limits, provided they are written into policy and communicated in advance. Earned time below the cap is still owed where policy treats PTO as compensation.

What this means for employees

Before you leave a job in Arizona, take these steps: (1) Pull your exact PTO balance from your latest pay stub or HR portal — not a rough estimate. (2) Review your written policy. In Arizona, payout depends on your written policy — save a copy before giving notice in case the handbook changes after your departure is announced. (3) Know the deadline. If your employer owes you PTO under their policy, you have 1 year to file a wage claim if it’s not paid. (4) Calculate your gross and net. Use the calculator above to verify your final check — employers sometimes use the wrong hourly rate or omit hours. Expect roughly 32.1% total withholding (22% federal + 2.5% Arizona + 7.65% FICA). (5) If you are denied payout, file a wage claim with the Arizona labor department referencing Ariz. Rev. Stat. § 23-350.

What this means for employers

Employers in Arizona should document their PTO payout policy in writing and apply it consistently. Use-it-or-lose-it policies are generally permitted here, but they must be clearly communicated to employees in advance. Calculate the final payout at the employee’s regular rate of pay and withhold supplemental federal tax (22%), 2.5% state tax, and FICA. Keep a copy of the calculation in the employee file.

How to calculate your Arizona PTO payout

To calculate a Arizona PTO payout, divide annual salary by 2,080 to get the hourly rate (or use the stated hourly rate), then multiply by accrued unused hours for the gross amount. Apply the 22% federal supplemental rate, 2.5% Arizona tax, and 7.65% FICA to estimate the net take-home.

Arizona PTO payout FAQ

Does Arizona require PTO payout when you quit or are fired?

In Arizona, PTO payout depends on your employer's written policy or contract. Reference: Ariz. Rev. Stat. § 23-350.

Are use-it-or-lose-it policies legal in Arizona?

Use-it-or-lose-it policies are allowed in Arizona.

How much tax is taken from a PTO payout in Arizona?

PTO payouts are supplemental wages: 22% federal withholding, an estimated 2.5% Arizona supplemental rate, and 7.65% FICA.