Updated July 25, 2026. Quick answer (2026): Arizona still taxes retirement withdrawals (top rate 2.5%), but levies no estate or inheritance tax. Four taxes decide what a move is actually worth — income tax on withdrawals, state estate tax, state inheritance tax, and what probate costs your heirs. This page prices all four for Arizona and shows what each arriving state gains or gives up.
What Arizona charges a retiree in 2026
| Tax | Arizona position, 2026 |
|---|---|
| State income tax | flat 2.5% |
| Social Security | not taxed (subtracted from Arizona gross income) |
| Pension / 401(k) / IRA | Private pensions, 401(k), and IRA distributions fully taxable at 2.5%. |
| Estate tax | none |
| Inheritance tax | none |
| Probate fee model | reasonable-fee |
| Probate filing fee | ~$306 initial probate filing (Maricopa County Clerk of Superior Court); varies modestly by county |
| Small-estate limit | A.R.S. §14-3971 as amended by HB 2116 (signed March 31, 2025): personal property up to $200,000 and real property up to $300,000 (both net of liens/encumbrances) — up from $75,000/$100,000. Sources conflict on exact 2025 effective date (June 30 vs Sept 26, 2025), but new limits are fully in effect as of mid-2026. Waits: 30 days (personal property), 6 months (real property). |
What you gain by arriving, depending on where you leave
The saving is not a property of Arizona — it is a property of the pair. From some states the income-tax gain is the whole story; from others it is exactly zero and the real money is a death tax you leave behind.
- Moving from California — the top rate falls; the death taxes matter more
- Moving from Colorado — the top rate falls; the death taxes matter more
- Moving from Illinois — you would START paying state income tax here
- Moving from Minnesota — the top rate falls; the death taxes matter more
- Moving from New York — the top rate falls; the death taxes matter more
- Moving from Washington — you would START paying state income tax here
- Moving from Wisconsin — the top rate falls; the death taxes matter more
More corridors into Arizona
What a move to Arizona is worth depends entirely on the state being left — these origins each carry a different combination of income tax, estate tax and inheritance tax, priced separately:
Getting the sequence right
Arriving in Arizona is the easy half. The order you do things in — when you establish domicile, when you convert, when you retitle or sell property back home — changes the total, and some of it is irreversible. See finding an advisor for a cross-state move.
What a move to Arizona does not fix
- Domicile is a test, not an address. Your departing state can audit the move. Days present, licence, registrations and where your advisers sit all count.
- Property left behind stays reachable by the old state’s estate rules.
- Probate still applies. No estate tax is not the same as no probate; Arizona uses a reasonable-fee fee model.
- Roth conversions are taxed where you are domiciled that year — see how all 51 jurisdictions tax Roth conversions.
Full detail: Arizona retirement taxes. Compare any pair with the retirement tax comparison tool, or browse all corridors at the relocation hub.
Getting the order right
Move timing, conversion sequencing and estate exposure interact. Know what advice should cost before you buy it — see our advisor cost guide.
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Cite or share this guide
Suggested citation: Clear Money Guide, “Retiring to Arizona: the 2026 Tax Position,” statute-cited; clearmoneyguide.com/retiring-to-arizona-taxes/. Free to cite with attribution. Download the full dataset as CSV, or contact contact@clearmoneyguide.com for custom cuts.
Primary sources
- A.R.S. § 43-1022
- AZDOR: Identifying Other Taxable Income / Military Tax Filing
- Ariz. Rev. Stat. §14-3719
- Ariz. Rev. Stat. §14-3971 (HB 2116, 2025)