Arizona income tax exemption on military retirement pay
Military retirement pay is fully exempt from Arizona income tax.
Apply on the official site ↗Goes to Arizona Dept. of Revenue military filing. Applying is free.
Who generally qualifies
Arizona residents who receive military retirement pay.
Exact income limits and rules are set by Arizona Department of Revenue and can change. Check the official site for current details.
How to apply
- Subtract it on your Arizona income tax return.
What to have ready
- 1099-R from DFAS
Common questions
- Does it cost anything to apply?
- No. Applying through the official site is free. Be wary of anyone who charges a fee to apply for you.
- Do I have to pay it back?
- No. A tax break lowers what you owe. You don't pay it back.
- Who decides if I qualify?
- Arizona Department of Revenue makes the final decision. This page explains the program in general terms only.
- Where can I find current income limits and amounts?
- Income limits, benefit amounts and deadlines change, so check Arizona Dept. of Revenue military filing for the latest details.
Link checked October 22, 2026. BenefitSearch is not affiliated with Arizona Department of Revenue.