Military retirement pay in Arizona
Varies
Does Arizona Tax Military Retirement Pay?
Short answer: No. Arizona fully exempts military retired pay from state income tax (full exemption in place since tax year 2021). Other retirement income: Private pensions and 401(k)/IRA withdrawals are taxed at Arizona's flat rate with no general retirement exclusion.
Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Military retirement pay in Arizona
Varies
Individuals / Personal Taxes
No. Arizona fully exempts military retired pay from state income tax (full exemption in place since tax year 2021). Other retirement income: Private pensions and 401(k)/IRA withdrawals are taxed at Arizona's flat rate with no general retirement exclusion.
Business justification
No. Arizona fully exempts military retired pay from state income tax (full exemption in place since tax year 2021). Other retirement income: Private pensions and 401(k)/IRA withdrawals are taxed at Arizona's flat rate with no general retirement exclusion. Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Category
- Personal Tax Deductions