Not tax advice. These are published state rules as of October 2026. Federal tax, local sales taxes, property taxes and your own income mix all matter. Talk to a tax professional before you decide.
California vs. Arizona: state taxes
| Item | California | Arizona |
|---|---|---|
| State income tax | Graduated, 1% to 12.3% (2025 schedules). Single filers hit 12.3% above $742,953; married filing jointly hits 9.3% from $145,448 and 12.3% above $1,485,906. [source] | Flat 2.5% for all income levels and filing statuses [source] |
| Social Security | Not taxed. It's subtracted on Schedule CA (540) (FTB, updated Jan 7, 2026). [source] | Not taxed by Arizona [source] |
| State sales tax | 7.25% statewide base, plus district taxes of 0.10%–2.00% in many areas (CDTFA). [source] | 5.6% state rate; county and city rates are added (ADOR rate table, Oct 1, 2026) [source] |
The short version
California and Arizona both leave Social Security untaxed. The big difference is the income tax rate: Arizona is a flat 2.5%, while California's brackets reach 9.3% at moderate incomes (from $145,448 for married filing jointly in 2025). Arizona's 5.6% state sales tax is below California's 7.25% base, though local rates are added in both states.
Arizona facts that apply to every move
- State income tax: Flat 2.5% for all income levels and filing statuses
- Social Security: Not taxed by Arizona
- State sales tax (TPT, retail): 5.6% state rate; county and city rates are added (ADOR rate table, Oct 1, 2026)
- Property tax help for 65+: Maricopa County's Senior Valuation Protection can freeze a primary residence's Limited Property Value for three years if you qualify (Maricopa County Assessor).
- HOA and recreation fees are a real part of 55+ living costs. Compare them with the Cost to Live calculator.
- Summer cooling: July's normal high at Phoenix Sky Harbor is 106.5°F (NOAA). Budget for A/C. See the seasonal living guide.
Other states: Washington to Arizona · Illinois to Arizona · Minnesota to Arizona · Moving to Arizona at 55+ · 55+ living by city
Frequently asked questions
Will I pay less state income tax in Arizona than in California?
California and Arizona both leave Social Security untaxed. The big difference is the income tax rate: Arizona is a flat 2.5%, while California's brackets reach 9.3% at moderate incomes (from $145,448 for married filing jointly in 2025). Arizona's 5.6% state sales tax is below California's 7.25% base, though local rates are added in both states.
Does Arizona tax Social Security?
No. The Arizona Department of Revenue lists Social Security retirement benefits as income Arizona doesn't tax.
What about property taxes and estate taxes?
They depend on the home, the county and your situation, so we don't estimate them here. In Maricopa County, homeowners 65+ may qualify for Senior Valuation Protection (the “Senior Freeze”). Ask a tax professional about estate and inheritance rules.
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Sources
Facts on this page were gathered from the sources below in October 2026. Third-party agent and listing sites are noted as such. Fees and rules change, so always check the association's current documents.
- California: State income tax
- California: Social Security
- California: State sales tax
- Arizona Department of Revenue: Individual Income Tax Highlights (2.5% flat rate)
- Arizona Department of Revenue: Individual Income Tax Information (Social Security exclusion)
- Arizona Department of Revenue: TPT Tax Rate Table (5.6% state rate)
- Maricopa County Assessor: Senior Valuation Protection