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Arizona Subtracts Military Retirement in Full

From tax year 2021, 100% of uniformed services retired or retainer pay comes out of Arizona income.

Verified August 18, 2026

What this benefit is

From tax year 2021, 100% of uniformed services retired or retainer pay comes out of Arizona income.

What it's worth: The whole of your military retired pay, subtracted

  • The saving is your marginal state rate applied to the amount excluded, so it depends on your bracket. We do not publish a figure that would misstate it.

Who is entitled to it

  • You receive military retired pay.
  • Your home is in Arizona.

Not sure whether that describes you?

Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.

How to claim it

Deadline: April 15, with your return
  1. 1Claim the subtraction or deduction on your state return for the year.
File with
Your state revenue department, with your annual return
Documents you will need
form 1099 r
Annual
Claimed once a year.
Worth knowingThe change took effect for tax year 2021 and replaced a capped subtraction. Guidance written before then understates it, and a retiree who filed on the old cap for 2021 or later should look at amending.

Sources

Why only one source type: We publish this record to describe how the state taxes military income rather than to route a filing, so the administering department's own guidance is sufficient.

This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.