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State Benefit·Arizona·🏛️Tax Benefits

Military Retirement Pay State Income Tax Exemption

100% of military retirement pay is exempt from Arizona state income tax.

Verified May 12, 2026againstazdor.gov

At a glance

Benefit type
Tax Benefits — Arizona
Who it's for
Veterans, Active Duty, National Guard, Reservists, Survivors
VA rating needed
No rating requirement
Estimated value
Full retirement pay exemption
Where it applies
Arizona
Last verified
May 12, 2026

What is Military Retirement Pay State Income Tax Exemption?

Military Retirement Pay State Income Tax Exemption is a Arizona tax benefits benefit for veterans, active duty, national guard, reservists, survivors. 100% of military retirement pay is exempt from Arizona state income tax. The listed value is Full retirement pay exemption.

Who qualifies

VeteransActive DutyNational GuardReservistsSurvivors
  • Available to any veteran
  • Arizona residency

How to apply

Apply through the official Arizona agency.

Open application

Who is eligible

Eligibility

Must be receiving retired or retainer pay from U.S. uniformed services. No disability rating required. No income cap.

What Military Retirement Pay State Income Tax Exemption covers

Covers

100% of military retirement pay, SBP, RCSBP, and RSFPP annuities are exempt. Active-duty and reserve pay is also exempt. Effective since tax year 2021.

How to apply for Military Retirement Pay State Income Tax Exemption

How to apply

Claim on Arizona state income tax return (subtract from taxable income).

Open applicationVerify at official source

Verified information & sources

Last verified: May 12, 2026

Official source: azdor.gov

Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.

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Frequently asked questions about Military Retirement Pay State Income Tax Exemption

Who qualifies for Military Retirement Pay State Income Tax Exemption?▾
Military Retirement Pay State Income Tax Exemption is for Veterans, Active Duty, National Guard, Reservists, Survivors; available to any veteran; arizona residency. See the eligibility details on this page and confirm with the official source before applying.
How much is Military Retirement Pay State Income Tax Exemption worth?▾
The listed value is Full retirement pay exemption. Amounts can change — confirm the current figure at the official source linked on this page.
How do I apply for Military Retirement Pay State Income Tax Exemption?▾
Apply through the official source linked on this page. A county Veterans Service Officer (VSO) can review your eligibility and help you file at no cost.
Where can I verify Military Retirement Pay State Income Tax Exemption?▾
Benefit rules and dollar amounts change, so always confirm current details at the official source linked on this page. A free, accredited county or state Veterans Service Officer (VSO) can also verify your eligibility and help you apply.

Other Arizona Tax Benefits

Disabled Veteran Property Tax Exemption (Partial Disability)

Property tax exemption proportional to disability percentage for veterans with any service-connected disability under 100% (ARS 42-11111).

$4,873 (2026) × VA disability %

Full Property Tax Exemption (100% Disabled)

Full property tax exemption with no assessed value cap for 100% total and permanently disabled veterans.

Full property tax exemption

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