To elect an Arizona withholding percentage, an employee must complete Arizona Form A-4, and submit it to their employer. The answer is simple there is no tax.For SSDI, taxes due, if any, will be calculated based on your filing status and whether you had other income to report. You are eligible to get disability benefits if you cannot work for any health-related reason. Your injury or illness does not have to be work-related. Arizona tax rates have decreased and as a result, AZDOR has revised withholding percentages and is requiring taxpayers to complete a new Form A4 for 2023. AARP's state tax guide on 2024 Arizona tax rates for income, property, retirement and more for retirees and residents over 50. All wages, salaries, bonuses or other compensation paid for services performed in Arizona are subject to state income tax withholding, with exceptions. AHCCCS offers insurance for qualified individuals who are working and have a disability. This program is called the AHCCCS Freedom to Work Program.