Does Arizona tax military retirement pay?
Not taxed
No. From tax year 2021 Arizona excludes retired or retainer pay of the uniformed services from income.
In the state's own words
Copied word for word from the official document linked below each quote:
“benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States (tax year 2021 and forward).”
Details worth knowing
- The same Arizona page also still carries an older sentence about a subtraction of up to $3,500 for uniformed services retired pay. The full exclusion is the one it dates to tax year 2021 and later.
Other retirement income in Arizona
Yes. Arizona generally taxes the same part of a pension that is taxable on your federal return. Pensions from Arizona state and local governments and the federal government get a subtraction of up to $2,500, and military retired pay is excluded. The Arizona pension page has the details, and the Arizona Social Security page covers Social Security. No. Arizona tells residents to exclude Social Security retirement benefits from the income they report to the state.
Before you file or move
This page is about state income tax only. Your federal return has its own rules for military retired pay, and VA disability compensation is a separate benefit from retired pay. State rules change, and the details (age, years, which kinds of pay qualify, survivor benefits) matter. Check with the Arizona Department of Revenue before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- Individual Income Tax InformationArizona Department of Revenue. Read on November 13, 2026.