Retirement taxes by state
How Arizona taxes retirement income in 2026
Arizona has a flat 2.5% income tax. Here's how Arizona treats Social Security, retirement-account withdrawals, pensions and Roth conversions in 2026 — and what that means in dollars: a retired couple, both 67, with $98,000 of income pays about $832 in Arizona income tax.
Updated October 2026 · 2026 tax year
Arizona at a glance
- Flat 2.5% income tax.
- Social Security isn't taxed.
Arizona retirement tax questions
Does Arizona tax Social Security?
No. Social Security isn't taxed.
Does Arizona tax 401(k) and IRA withdrawals?
Yes, at the state's regular income tax rates. Arizona has no special exclusion for retirement-account withdrawals.
Does Arizona tax pensions?
Yes, at the state's regular income tax rates. Arizona has no special pension exclusion.
Does Arizona tax Roth conversions?
Yes. A Roth conversion counts as income in Arizona in the year you convert, taxed at the state's regular rates. Qualified Roth withdrawals later aren't taxed.
What is Arizona's income tax rate in 2026?
Arizona has a flat 2.5% income tax.
What retirees actually pay in Arizona: three examples
Calculated with Retirology's tax engine under 2026 law, using each state's standard deduction, its retirement breaks and the 2026 federal rules for how much Social Security is taxable. For the retired couple, Arizona ranks 41st lowest of the 50 states and DC.
| Household | Total income | Arizona tax | Share |
|---|---|---|---|
| Retired couple, both 67 $48,000 of Social Security, $40,000 drawn from IRAs and 401(k)s, and $10,000 of qualified dividends | $98,000 | $832 | 0.8% |
| Single retiree, 70 $30,000 of Social Security, a $25,000 pension and $15,000 of IRA withdrawals | $70,000 | $791 | 1.1% |
| Early-retired couple, both 56, converting to Roth A $60,000 Roth conversion and $20,000 of long-term gains and qualified dividends, living on savings | $80,000 | $1,582 | 2.0% |
State income tax only — before local taxes, property tax relief and credits not listed above. Federal income tax is extra and the same in every state.
Details and limits
Arizona conforms to the pre-2025 federal standard deduction. Only government pensions get a (small) exclusion.
Sources
Rates and rules for the 2026 tax year, from Retirology's state tax data (reviewed October 2026):
This page explains state tax rules in general terms. It isn't tax advice — check your state's official instructions or a tax professional for your situation.