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Asked 12/9/2007
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Out of state government pension taxes I relocating to Arizona in the near future. I have a state teacher's pension in Michigan. It totals $37,916 per year. I understand that all out of state government pensions are fully taxed in Arizona. I would like to know how much that retirement income tax will be. Thank you.
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Answer 1/3 - Submitted 12/12/2010
Answer 2/3 - Submitted 12/12/2010
Hi Connie,
The state income taxes in AZ are not a flat tax, they're a progressive tax, the more you make the higher percentage you pay.
Without knowing the rest of you income, marital status, exemptions/deductions, no one can tell you exactly how much in AZ income taxes you will pay. It is a good idea to do a mock return and see the impact this move may have on your tax liability.
Answer 3/3 - Submitted 1/21/2011
The Arizona state income tax on $37,916 would put you
into the 3.36% state tax bracket. You would have to make
more than $50,000 to go into the next tax bracket.
Between $0 and $10,000 2.59% tax is $256 dollars.
Between $10,001 and $25,000 2.88% tax is $432 rounded up.
The remaining $12,915 is taxed at 3.36 per cent, that's another $432
256+432+432= $1120. Jesus that's not cheap. Correct me if I'm wrong.
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