Get matched with a Federal Retirement Consultant in Arizona

Getting matched in Arizona

Arizona taxes retirement income but excludes part of a FERS annuity for many retirees.

That matters because the federal rules are identical in every state, but the take-home is not. A retirement date, a survivor election or a TSP withdrawal plan that is right in one state can land differently in another once state tax is counted. A consultant who serves Arizona reads your plan with that in view.

How Arizona taxes a federal retirement

Arizona lets you subtract up to $2,500 per taxpayer each year for federal government pensions, and that covers both CSRS and FERS basic annuities. Anything above $2,500 is taxed at the 2.5% flat rate. The $2,500 is one combined cap across all qualifying federal, Arizona state and Arizona local government pensions, not a separate amount for each plan.

Arizona has no general retirement exclusion for retirement savings accounts. A traditional TSP withdrawal at best uses the same single $2,500 per taxpayer government pension subtraction your FERS annuity already claims, so you get one $2,500 subtraction in total and pay 2.5% on the rest.

Arizona does not tax Social Security benefits. The federally taxable amount is subtracted on your Arizona return.

Tax year 2026 rates; exclusions as published for current returns. Confirm with the Arizona revenue department or a tax professional.

Where Arizona federal employees work

Arizona has about 34,000 federal civilian employees, with large concentrations at Fort Huachuca, Luke Air Force Base, Davis-Monthan Air Force Base and U.S. Army Yuma Proving Ground. Wherever you work, the retirement rules are the same federal rules. What changes with your address is the tax picture above and which consultants are licensed to work with you.

How matching works in Arizona

1. Step 1

   Tell us where you are

   Pick a time below and share your city, state and the decision you are weighing. Nothing is filed and you can stop at any step.

2. Step 2

   We match you with an FRC who serves Arizona

   FFEBA, the organization behind the FRC designation, refers you to a Federal Retirement Consultant in its network who works with federal employees in your state. Look them up by name before the call.

3. Step 3

   A free review, by phone

   The consultant reads your situation against the federal rules and your goals, in plain terms. If your plan already fits, you will hear that.

What the review covers

The consultant walks the same ground for every federal employee, in plain terms and against your own goals:

• Your retirement date. Eligibility, the FERS Supplement, COLA timing, and how the date shapes your first years of income.
• The survivor election. What it costs, what it protects, and how it affects FEHB for a spouse.
• FEHB and Medicare. The five-year rule, and how your plan coordinates with Medicare later.
• FEGLI. Which options you carry into retirement, and where coverage stops earning its cost.
• The TSP. How it is invested today and how you will turn it into income once the paychecks stop.

Arizona cities

City pages for the largest federal workforces in Arizona, with the installations and agencies where people work: Phoenix, Tucson. Not near one of these? The booking form above works for anyone in Arizona.

This page is education, not tax, legal or investment advice. State rules change; confirm the Arizona figures with the state revenue department or a tax professional before you file anything.