Arizona Retirement Income Tax 2025
See how Arizona treats Social Security, private pensions, annuities, and IRA distributions for a full-year resident, then run the official-source estimate with your own income.
Social Security
Arizona excludes Social Security retirement benefits from income.
Pension and IRA income
The federally taxable portion of private pension and IRA income is generally taxable in Arizona.
Estimated 2025 state tax
$1,625Resident return; local taxes and unmodeled credits excluded.
Modeled state taxable income
$65,000Retirement-income subtraction
$15,000Arizona excludes Social Security retirement benefits from income.
The federally taxable portion of private pension and IRA income is generally taxable in Arizona.
Scope: Arizona government and U.S. government pension subtractions, military retirement exclusions, and part-year allocation are not modeled.
Arizona worked example
For a single filer age 68 with $80,000 of federal AGI, including $15,000 of federally taxable Social Security, $30,000 of pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income:
Retirement subtraction
$15,000
Modeled state taxable income
$65,000
Estimated 2025 state tax
$1,625
This is an illustration, not a tax return. Local taxes, credits, and unmodeled state adjustments are excluded.
What this model does not include
Arizona government and U.S. government pension subtractions, military retirement exclusions, and part-year allocation are not modeled. Review the official instructions before filing.
Review the full Arizona income tax guide →Arizona retirement income tax FAQs
Does Arizona tax Social Security benefits in 2025?
Arizona excludes Social Security retirement benefits from income.
Does Arizona tax pensions and IRA withdrawals?
The federally taxable portion of private pension and IRA income is generally taxable in Arizona.
What does the Arizona retirement tax example include?
The example uses a single filer age 68 with $80,000 of federal AGI, $15,000 of federally taxable Social Security, $30,000 of private pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income.
Is this a complete Arizona resident return?
No. The estimate focuses on retirement-income treatment and the state rate schedule. It excludes local income tax and does not reproduce every deduction, credit, addition, subtraction, or special pension rule. Arizona government and U.S. government pension subtractions, military retirement exclusions, and part-year allocation are not modeled.
Sources
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