Arizona Income Tax Exemption for Military Retired Pay

Arizona Department of Revenue

Full exemption from Arizona income tax on military retired pay

Arizona does not tax military retired pay. All of your military pension is exempt from Arizona income tax. Thrift Savings Plan money is different: TSP distributions are still subject to state tax, and taking money out early can cost you more.

Check eligibility

How to apply

There is nothing to apply for. Leave your military retired pay out of the income you report on your Arizona return.

What you'll need

Your Form 1099-R showing the retired pay, kept with your tax records.

Eligibility

You are filing an Arizona income tax return
You receive military retired pay

Source

Official source

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