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.
Washington vs. Arizona: state taxes
| Item | Washington | Arizona |
|---|---|---|
| State income tax | None on wages and retirement income today. A new 9.9% tax on adjusted gross income over $1 million takes effect January 1, 2028 (SB 6346, per WA DOR). [source] | Flat 2.5% for all income levels and filing statuses [source] |
| Capital gains tax | 7% on long-term gains above the standard deduction ($278,000 for 2025), plus an extra 2.9% on gains over $1 million from tax year 2025 (WA DOR). [source] | No separate capital gains tax; gains are part of Arizona taxable income at the flat 2.5% rate. Ask a tax professional about Arizona's subtractions. [source] |
| State sales tax | 6.5% state rate, plus local rates (WA DOR). [source] | 5.6% state rate; county and city rates are added (ADOR rate table, Oct 1, 2026) [source] |
The short version
For most retirees, Washington has no income tax today, so moving to Arizona's 2.5% flat tax is usually not a tax saving on income. Arizona does tax income Washington doesn't, though it leaves Social Security alone. Reasons to move from Washington are more often climate and lifestyle. Run your own numbers with a tax professional. Arizona's 5.6% state sales tax is below Washington's 6.5% state rate, though local rates are added in both.
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: California 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 Washington?
For most retirees, Washington has no income tax today, so moving to Arizona's 2.5% flat tax is usually not a tax saving on income. Arizona does tax income Washington doesn't, though it leaves Social Security alone. Reasons to move from Washington are more often climate and lifestyle. Run your own numbers with a tax professional. Arizona's 5.6% state sales tax is below Washington's 6.5% state rate, though local rates are added in both.
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.
- Washington: State income tax
- Washington: Capital gains tax
- Washington: 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