The same portion of your pension is taxable for Arizona purposes as is taxable for federal purposes, but subjected to additonal exemptions. Arizona will tax your retirement income from another state. Retirement Taxes
The same portion of your pension is taxable for Arizona purposes as is taxable for federal purposes, but subjected to additonal exemptions. Arizona will tax your retirement income from another state.
State Tax Exemptions
Private Pension: The tax treatement of private pension is same as federal pension taxes.
None
2,500
Federal Pension: Out of state federal pensions are fully taxed.
2,500
Military Pension: 2,500
Social Security: Yes
Social Security benefits are tax exempt.
Pension Age Restriction: No
Pension Income Restriction: No