Wondering About Arizona Retirement Taxes? RapidTax is here to help.
If you live in or plan on moving to Arizona, you should know that the state has more to offer than just great weather.
Not only is Arizona home to the very famous Grand Canyon, it’s also a tax-friendly state for retirees.
Rather than sorting through Arizona’s Department of Revenue website, you can quickly learn why Arizona has become a popular destination for retirees.
Social Security is Not Taxed
Arizona is a destination to many retirees thanks to the state not taxing Social Security benefits.
That right, Social Security checks aren’t subject to taxation in Arizona.
Some Forms of Retirement Income are Exempt from Arizona Taxes
Railroad retirement benefits are exempt from Arizona state taxes.
Additionally, up to $2,500 of the following pensions are exempt from taxation:
- military
- civil-service
- Arizona state and local government pensions
Other Arizona Tax Breaks for Seniors
If you’re 65 or older, you’ll be eligible for a Arizona Property Tax Credit if you’re a homeowner or renter with income equal to or less than the following amount;
- $3,750: Single
- $5,500: Married
Additionally, Arizona does not have an inheritance tax or estate tax.
File Your Arizona State Tax Return Today
It’s obvious why Arizona falls among the list of top states to retire in- there’s an abundance of sunshine and low tax rates.
If you need to file your 2014 state tax return whether it be to Arizona or another state, you can do so with RapidTax.
To get started, create an account today and have your state and federal taxes e-filed.
Photo via Andy Morffew on Flickr
Railroad retirement is exempt. But are pensions from Union Pacific railroad exempt?