ARIZONA RETIREMENT INCOME TAX · TAX YEAR 2026
Does Arizona tax Social Security and retirement income?
Arizona does not tax Social Security benefits. Arizona taxes private pensions and 401(k) and IRA withdrawals, subtracts up to $2,500 of a federal or Arizona government pension, and exempts military retirement. A single 67-year-old with $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals pays $295 in Arizona income tax for 2026.
Your estimate
- Arizona income tax
- $295.00
- Federal income tax
- $1,810.00
- Total income tax
- $2,105.00
Subtracted from Arizona income
- Social Security
- $11,300.00
- Age 65 exemption
- $2,100.00
Not yet published for 2026: Age 65 exemption per person $2,100 (latest published, 2025).
Other states' public pensions do not qualify for the $2,500 subtraction. No Arizona deduction tied to the federal senior deduction is applied; none appears in the 2025 Form 140 instructions.
Arizona tax at different retirement incomes
Arizona income tax for 2026 on a single 67-year-old with $24,000 of Social Security, and on a married couple, both 67, with $20,000 each. Half the pension and IRA income is a private pension and half IRA withdrawals, all received by one spouse in the couple.
| Pension and IRA income | Single | Married |
|---|---|---|
| $20,000 | $45 | $0 |
| $40,000 | $545 | $90 |
| $60,000 | $1,045 | $590 |
| $100,000 | $2,045 | $1,590 |
| $150,000 | $3,295 | $2,840 |
Does Arizona tax Social Security?
No. Arizona subtracts Social Security and railroad retirement benefits.
Of the single 67-year-old's $24,000 in benefits, $11,300 is federally taxable and Arizona taxes none of it. Of the couple's $40,000, $28,100 is federally taxable and Arizona taxes none of it.
Does Arizona tax pensions?
Yes. Private pensions are taxed in full. Each person can subtract up to $2,500 of a federal or Arizona state or local government pension; other states' public pensions do not qualify. Military retired pay is exempt.
State tax for a single 67-year-old with $24,000 of Social Security, a $20,000 pension of each type and $10,000 of IRA withdrawals. Excluded is the part of the pension Arizona exempts.
| Pension | Excluded | State tax |
|---|---|---|
| Private | $0 | $295 |
| Arizona government | $2,500 | $233 |
| Federal civil service | $2,500 | $233 |
| Military | $20,000 | $0 |
Does Arizona tax IRA and 401(k) withdrawals?
Yes. IRA, 401(k) and 403(b) withdrawals are taxed, with no subtraction. Qualified Roth IRA withdrawals are not taxed.
With $24,000 of Social Security, $20,000 of IRA withdrawals and no other income, a single 67-year-old pays $45 in Arizona income tax for 2026.
At what age do retirement tax breaks start in Arizona?
At 65. Each person 65 or older by December 31 gets an exemption of $2,100 (latest published, 2025).
State tax at each age where the rules change. The single filer has $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals; the couple, both that age, has $20,000 of Social Security each and a $30,000 pension and $20,000 of IRA withdrawals.
| Age | Single | Married |
|---|---|---|
| 64 | $348 | $445 |
| 65Age 65 exemption | $295 | $340 |
What the calculator leaves out
Other states' public pensions do not qualify for the $2,500 subtraction. No Arizona deduction tied to the federal senior deduction is applied; none appears in the 2025 Form 140 instructions.
The calculator uses Arizona rules from the 2025 forms and instructions, the latest published.
Figures not yet published for 2026
- Age 65 exemption per person: $2,100 (latest published, 2025).
Federal tax uses the 2026 brackets, the standard deduction with the extra amount at 65, and the $6,000 senior deduction. Estimates assume no other deductions, credits or local taxes except as noted.