Arizona is a moderately tax-friendly state. Arizona favors retirees when it comes to Social Security benefits, estate and estate taxes; without any of them. Arizona is in favor of retirees when it comes to Social Security benefits and estate and estate taxes; with none of this at stake, you can pocket extra money and leave more to your heirs. However, the state of the Grand Canyon does charge state income taxes, as well as taxes on most sources of retirement, such as 401 (k) and IRAs, hence its status as a “moderately favorable” state taxes”.
Arizona's appeal as a retirement destination is well deserved. Year after year, it is among the best states for retirees, and with good reason. The state offers a combination of tax advantages, affordable housing in many areas, and about 300 days of sunshine a year. Attracted by the promise of an active lifestyle, many retirees consider Arizona home because of its picturesque surroundings and a lower overall cost of living compared to many coastal states.
The cost of living here in Arizona is generally quite favorable compared to many other states, making it an affordable option for retirees. Arizona tax laws are also favorable for retirees. There is no state income tax on Social Security benefits, which can be a significant financial advantage. With the highest average annual sunlight in the country, Arizona is the ideal place for retirees who enjoy the sun all year round.
Arizona is known for being hot and dry, but the climate varies a lot depending on where you are and what time of year it is. While temperatures rise significantly during the summer months, between June and August, Arizona offers dry and stable weather for the rest of the year, from fall to spring, often between 40 and 90 degrees Fahrenheit. In addition, Arizona has an overwhelming number of days with blue and clear skies compared to days when it rains. The country's first active adult retiree community emerged in Youngtown, Arizona, in 1954, and since then, many retirees have settled in Arizona all year round.
In fact, nearly 22% of the state's nearly 8 million residents are 65 or older. Arizona retirees have plenty of options with more than 100,000 homes in more than 55 communities spread across the state. One of the most popular is Sun City in Sun City, Arizona, an age-restricted retirement community for people age 55 and older. It offers seven recreational centers, one of the highest golf hole rates per capita of all active adult communities in the country, indoor and outdoor pools, clubs, restaurants, craft and fitness centers, as well as 30 churches, a synagogue, two libraries, a performing arts center, two hospitals and more.
In 2024, Arizona was one of the main states to which people aged 60 and over moved, according to Smart Asset, with a net influx of 23,515 people. And Arizona's population continues to grow and, according to Macrotrends, will increase by 1.46% in 2024. Current estimates place the population over 65 at 1.35 million, according to a study conducted by Neilsberg in 2025. But maybe you've never really experienced it. Once the sun goes down, the temperature drops rapidly. Annual rainfall ranges from 3 inches in the arid southwest to about 40 inches in the mountains of east-central Arizona, according to the climate office at Arizona State University.
For example, the temperature in Lake Havasu City averages 109°F in July and a low of 42°F in December and January. Real estate agent Patty Caperon, an affiliate agent of the Coldwell Banker residential brokerage office in Lake Havasu, describes it as a “very quiet and relaxing city, whether for dining with canal views, spending a night at the Grace Arts Live Theater or going out with friends”. Baseball fans can enjoy Major League Baseball's relaxing “cactus league” atmosphere during Arizona spring training for 15 teams in cities such as Phoenix, Tempe, Scottsdale, Surprise, Goodyear and others. In addition, golfers can play golf on more than 300 courses spread across the state.
In the town of Gilbert, near Mesa, some residents are organizing to stop the growth of apartment complexes. The bumper stickers say No more apartments, we are a town, no a city. And GM's former 500-acre testing ground in Mesa is being rebuilt as Eastmark, a planned retirement community with more than 1,500 adult and luxury homes. Arizona's state sales tax is 5.6%.
However, because localities can add their own sales taxes, you could pay much more in sales taxes depending on where in the state you land (and buy). Arizona's average local sales tax rate is approximately 2.7%, and the combined average (state and local) Arizona sales tax rate exceeds 8.38%. Burwell says: “The only damage this causes is with regard to live television, mainly sports. In September and October, NFL games start at 10 in the morning.
The sports bars open at 9 and serve breakfast. Therefore, I don't go to sleep before the World Series or Monday Night Football games are over. Use your 2024 tax refund to boost your short- or long-term financial goals by placing you in one of these six places. Places to Live These are our retirement options in all 12 Midwestern states. Places to live Some like the heat; others, not so much.
Here are the 12 best places to retire if you can't handle the heat. Is Arizona a good place for retirees? Yes, in general, there are a lot of advantages to retiring in Arizona. There are no Social Security income taxes, there are lots of sunny days, and you'll find lots of other seniors living around you, so making new friends and creating a sense of community shouldn't be difficult. Of course, just like in Arizona, the sun doesn't shine every day. To see some of the downsides of choosing to retire in Arizona, skip to our section on the pros and cons of retiring in Arizona.
Retiring in Arizona means enjoying breathtaking views every day and enjoying lots of outdoor excursions. Is Arizona a good state to retire in? Although it's considered a great state for seniors, retiring in Arizona can come with some drawbacks. Let's learn a little more about the pros and cons of retiring in Arizona. The flip side of that warm winter weather is that summer can be very hot.
Since Arizona has a desert climate, summers are scorching. Although the heat is dry (as opposed to humid and humid heat, as in Florida) and most areas are air conditioned, the intense summer heat is something to consider if you're thinking about retiring in Arizona, but you have a medical condition or are prone to heat stress. When you retire in Arizona, you'll have plenty of opportunities to get outside and enjoy the outdoors. Whether you want to hike the trails, play golf, or explore one of the many state or national parks, Arizona is full of natural beauty. Not to mention that the warm, sunny weather means you can spend more days outside.
Even if you don't think that Arizona is prone to extreme weather conditions at first, you should know that dust storms and monsoons can happen unexpectedly. The summer monsoon season runs from June 15 to September 30 and can include heavy rain, lightning and flooding. Dust storms known as haboobs (that's their real name) are common and residents must stay in their homes when they arrive. Is Arizona a tax-friendly state for retirees? Yes, retirement in Arizona can help you get even more out of your retirement savings because Social Security benefits are not taxable.
However, the state does tax other retirement accounts, such as withdrawals from an IRA or 401 (k). Most places in Arizona require that you have access to a car, as public transportation isn't easily available outside of major downtown areas. However, if you choose to live in a retirement community, they may have their own mode of transportation to help retirees to health centers, pharmacies, and grocery stores. Is Arizona a good place to retire or is Florida better? Many say that Arizona is because of its favorable weather conditions.
Florida also has a good number of great hospitals and health systems. However, it's best to research your own specific needs before choosing a place to live based on this. And the weather in Arizona is perfect if you're looking for a place that's sunny most of the year and that only experiences adverse weather conditions a few times during the summer months. In Florida, you'll have to deal with hurricanes, floods, and warm, humid temperatures every year. In Arizona, you face witches, dust storms and, from time to time, monsoons.
While the temperatures may be more pleasant near the beach, those properties are also very expensive. While it's important to consider the cost of living and housing, think about where you would be most comfortable during your retirement years. Both states have a lot to offer, but they differ considerably when it comes to climate. Scottsdale is considered by many to be the best place to retire in Arizona because of the city's abundance of outdoor activities and amenities. Another fantastic place to retire in Arizona is Sun City, which is located just outside Glendale.
With an average age of 72.6 years, Sun City is a quiet community that is proud of its friendly residents who welcome people from all over the country. It's a safe area where you'll definitely feel comfortable if you want to get out and explore places like Viewpoint Lake, Maricopa Lake Park, or Rio Vista Community Park. If golf is more your style, you're in luck. There are lots of great courses just a short drive away.
Visit Lakes West, Quail Run, or the popular Sun City Country Club. This area is also easy to get around, and you'll find plenty of shopping options at Arrowhead Towne Center. And when you're ready to try local cuisine, you can try Greek options at SunSet Bistro or Italian food at Dominic's Bistro Italiano. When you retire, you'll most likely want to keep a close eye on your savings.
It's a smart decision and can help your money go further. If you're looking for affordable housing or rentals and want to retire in Arizona on a tight budget, consider these charming cities. Bisbee has a rich art scene, unique outdoor landscapes, and a relatively low cost of living. If you're interested in retiring in Arizona because of its rich history, look no further: visit the small town of Ajo. Filled with Spanish colonial architecture and historic monuments, such as the 1917 Plaza Ajo, Ajo offers a picturesque and culturally rich environment along with a warm and welcoming community.
And don't think that this city is quiet just because it's small, there are several festivals and events, such as the Garlic Gastronomic Festival and the Artisans Market. Are you planning to retire in Arizona? As soon as you decide, call PODS to help you organize the details of your move. Arizona is a popular retirement destination for retirees thanks to its warm climate, favorable tax benefits, affordable cost of living and access to health care. With its diverse landscapes, ranging from desert views to mountain retreats, the state offers a variety of environments that adapt to different styles of life.
Arizona also has a good number of smaller cities with a quieter, community-centered lifestyle for those retirees looking for a slower pace. Choosing Arizona for retirement means balancing financial benefits with lifestyle considerations, from climate and taxes to health care and housing. Older people enjoy retiring in Arizona because of its climate, of course, but also because of its rich art scene and unique outdoor landscapes. Health care is a top priority for retirees, and Arizona offers strong options, especially in and around major cities.
Arizona has some of the best hospitals in the country, whether you need a specialist or a primary care doctor. The Arizona Department of Economic Security has many programs for older adults and their families to meet the health care needs of older people, such as aging at home and long-term support. While Arizona doesn't offer as broad an exemption for family housing as in states like Florida, its combination of lower property taxes, no taxes on Social Security benefits, and diversity of housing options can create a strong foundation for an affordable retirement, especially for those who want to explore areas beyond high-demand cities. Arizona can be a retirement oasis for seniors seeking affordability, tax benefits, accessible healthcare and majestic landscapes.
When you make the decision to retire in Arizona, you'll be in good company, as people over 65 make up 18.8 percent of the population, and Arizona is ranked 14th when it comes to having the most seniors in the U.S. UU.
