Retirement Tax Breakdown for Arizona Residents

Complete Arizona retirement tax guide: income tax rates, capital gains treatment, Social Security and pension taxation, property taxes, and sales tax. Overall retiree-friendliness rank: #5 of 51.

State Income Tax
2.5% top rate

1 bracket(s)

Capital Gains Rate
2.5%

Treated as ordinary income

Property Tax Rate
0.62%

#34 (Above Avg)

Sales Tax Rate
8.4%

State 5.6% + local avg 8.4%

Tax-Friendly State

Arizona's flat 2.5% income tax is among the lowest. Social Security is not taxed. Property taxes are low. Sales tax is higher than average.

Retirement Income Taxation

Social Security

Not taxed

Pension Income

Taxable

Retirement Exemption

None

Tax Comparison Summary

State income tax2.5% top
Capital gains2.5%
Property tax0.62% effective
Sales tax8.4% combined
Overall retiree rank#5 of 51

Arizona Income Tax Brackets

State Tax Bracket Schedule

RateFromTo
2.5%$0No limit

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