Tucson has plenty of reasons for you to love it, the amazing Mexican food, the spectacular sunsets, and the low-key winters just to name a few. But did you know that being in Arizona puts us in one of the top 7 tax-friendly states? That’s great news for people looking to relocate and especially good for retirees on a fixed income. Here’s why Arizona is the best state for retirement.
Tucson For the Retired
We’ve assembled a list of tax-free items so you can see, at a glance, the biggest tax reasons Tucson, Arizona is the place to be and the best state for the retired.
Tax-free:
- Estate and inheritance
- Groceries
- Military retirement income
- Prescription drugs
- Railroad retirement income
- Social-Security benefits
Tax-Breaks:
- Up to $2,500 of income from federal government, designated Arizona state government, and Arizona local government retirement plans is exempt.
- Senior residents could qualify for a property tax refund of $502.
- Seniors of 70 and older can qualify to defer their property taxes if they’ve lived in their home for 6 years and in Arizona for 10.
- For AZ state government, and AZ local government up to $2,500 in retirement plans are exempt.
Tax-Basics:
- Arizona has a 5.6% state levy
- Cities can add up to 5.6% but the states median is 8.4%
- Low end income tax is 2.5%, the high is 5.7%
- There is a 3.5% surtax on (taxable) income over $250,000 for single filers and $500,00 for joint filers.
Ok so technically all this information applies to the entire state of Arizona as a whole, however… We really believe that once you’ve looked around at what AZ has to offer you will find that Tucson is not only economically feasible but it’s also the warmest and welcoming city you will find on our stretch of the Sonoran Desert. When you’re done with the rest, come back to the best!
