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.
Minnesota vs. Arizona: state taxes
| Item | Minnesota | Arizona |
|---|---|---|
| State income tax | Graduated, 2026 rates of 5.35%, 6.80%, 7.85% and 9.85% (9.85% above $337,931 married filing jointly) (MN Revenue). [source] | Flat 2.5% for all income levels and filing statuses [source] |
| Social Security | Partly or fully subtracted. Under the simplified method, the full amount is subtracted if AGI is under $108,320 (married filing jointly) or $84,490 (single/head of household), then the subtraction phases out (MN Revenue). [source] | Not taxed by Arizona [source] |
| State sales tax | 6.875% state rate, plus local taxes (MN Revenue). [source] | 5.6% state rate; county and city rates are added (ADOR rate table, Oct 1, 2026) [source] |
The short version
Minnesota's lowest income tax bracket (5.35%) is more than double Arizona's flat 2.5%, and Minnesota may tax part of your Social Security at higher incomes. Arizona doesn't tax Social Security at all. Arizona's 5.6% state sales tax is also below Minnesota's 6.875% 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 · Washington to Arizona · Illinois 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 Minnesota?
Minnesota's lowest income tax bracket (5.35%) is more than double Arizona's flat 2.5%, and Minnesota may tax part of your Social Security at higher incomes. Arizona doesn't tax Social Security at all. Arizona's 5.6% state sales tax is also below Minnesota's 6.875% 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.
- Minnesota: State income tax
- Minnesota: Social Security
- Minnesota: 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