AZ · Tax Year 2026
How Arizona taxes Social Security, pensions, 401(k)/IRA withdrawals, and military retirement pay in 2026.
$2,500 for qualifying federal and Arizona state/local government pensions; military fully exempt
No general age-based retirement exclusion
Additional Notes
Private pensions and traditional account distributions generally taxable
Does Arizona tax Social Security benefits?
No. Arizona does not tax Social Security retirement benefits.
Does Arizona tax pension income?
Partially. Arizona provides exemptions for certain types of pension income — often public, government, or military pensions — while private pensions may be partially or fully taxable. See eligibility details above.
Does Arizona tax 401(k) and IRA withdrawals?
Yes, traditional 401(k) and IRA withdrawals are generally taxable in Arizona. However, exclusions or credits may apply depending on your age and income — review the details above.
Is Arizona a tax-friendly state for retirees?
It depends on your income mix. Arizona offers some retirement income relief, but the rules vary by income type and eligibility. Review the details above and consider consulting a tax professional for your specific situation.
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Data Source
Official Arizona state tax authority guidance. Tax year 2026. Some annually indexed thresholds may not yet be finalized — confirm with the state revenue department before filing.
Related for Arizona
Data reflects tax year 2026 rules sourced from official Arizona state tax authorities. This page is for informational purposes only — always confirm current rules with the state revenue department or a qualified tax professional before making financial or relocation decisions.