Is Arizona a Tax-Friendly State for Retirement

On balance, Arizona is a tax friendly state for retirement. In fact, with a total state and local tax burden that is the 10th lowest in the nation, Arizona is tax-friendly for just about everyone. There are, however, some additional advantages for retired people.

  • Social security income is exempt from state income tax
  • Individuals over 65 get a $2100 exemption
  • U.S. government, AZ, and local AZ pension incomes receive a $2500 exemption
  • Property taxes have limits and are below the national average


Other Arizona Tax Facts:

Arizona top marginal income tax rate is 4.54% (which kicks in at $150,000). State sales tax is 6.6%; some localities have additional sales taxes.


For more information about Arizona as a tax friendly state consult these resources :


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