Retirement income in Arizona
Varies
Does Arizona Tax Retirement Income?
Short answer: Yes. Private pensions and 401(k)/IRA withdrawals are taxed at Arizona's flat rate with no general retirement exclusion.
Government pensions: Up to $2,500 per person of pensions from the U.S. government or Arizona state/local government retirement systems may be subtracted; pensions from other states' systems do not qualify. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
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.
Retirement income in Arizona
Varies
Individuals / Personal Taxes
Yes. Private pensions and 401(k)/IRA withdrawals are taxed at Arizona's flat rate with no general retirement exclusion.
Business justification
Yes. Private pensions and 401(k)/IRA withdrawals are taxed at Arizona's flat rate with no general retirement exclusion. Government pensions: Up to $2,500 per person of pensions from the U.S. government or Arizona state/local government retirement systems may be subtracted; pensions from other states' systems do not qualify. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Category
- Personal Tax Deductions