State tax docs / States / Arizona

Arizona state income tax: engine rules, 2026

How the QuantCalc engine computes Arizona tax for tax year 2026, rule by rule, with the official source for each rule. Verification status: Worksheet-tested (what this means).

On this page: How the tax is computed · Rate schedule · Deductions, exemptions and credits · Age 65+ subtractions and credits · Social Security · IRA, 401(k) and private pensions · Public pensions · Military retirement pay · Roth conversions · Capital gains · Blindness and disability · Part-year and nonresident returns · Worked examples · After 2026 · Not calculated · Verification. Machine-readable: this state's entry in the engine config and the provenance file (key AZ).

How the tax is computed

Every step the engine takes for Arizona, in the order it takes them. Steps marked with a filing status or household type apply only there. Each step links the section below that carries Arizona's figures and the official sources for it; the calculation order page describes every step for all jurisdictions.

What each filing status gets, read back from the engine for a household with $1 of income (so below every phase-out and income test):

	Single	Married filing jointly	Married filing separately	Head of household
Rate schedule used	single schedule	joint schedule	joint schedule, thresholds halved	single schedule
Top rate	2.5% flat	2.5% flat	2.5% flat	2.5% flat
Standard deduction, under 65	$16,100	$32,200	$16,100	$24,150
Standard deduction at 70 (joint: both 70)	$16,100	$32,200	$16,100	$24,150
Personal exemption	none	none	none	none
Age subtractions at 70 (joint: both 70)	$8,100	$16,200	$2,100	$8,100

Per-person mode joint returns with the spouse's age given On a joint return with the spouse's age given, every age test the state applies per taxpayer is evaluated for each spouse at their own age. Without it one household age applies to both.
engine step (compute_state_tax_detail). Engine convention, no external source: The engine cannot know the second spouse's age unless told.
Blindness and disability, per person only when the caller says a person is blind or disabled The filer is person one; the spouse counts only on a joint return and only when the caller says so (there is no household convention as for age). Where a state lets a disabled person (and, where it says so, a blind one, or one whose spouse is disabled) qualify for its general retirement exclusion before the age, that person is treated as having reached the age for that exclusion only. Of the 42 taxing jurisdictions, these have a blind amount: Arizona, Arkansas, California, Colorado, Delaware, the District of Columbia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, North Dakota, Oklahoma, Oregon, Utah, Vermont and Virginia; these have none: Alabama, Connecticut, Georgia, Louisiana, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, West Virginia and Wisconsin. A disability route is calculated in Arkansas, the District of Columbia, Georgia, Hawaii, Idaho, Iowa, Maryland, Michigan, New Jersey, Oregon and West Virginia.
engine step (compute_state_tax_detail). Engine convention, no external source: Who is blind or disabled is the caller's statement; the engine has no household convention for it.
Rate schedule and standard deduction by filing status Single uses the single schedule and deduction; married filing jointly the joint ones. Head of household and married filing separately follow the two steps below.
Arizona's values · engine step (select_brackets). Sources (Rate schedule): A.R.S. §43-1011 (Version 1) - Taxes and tax rates (checked 2026-10-12)
Married filing separately Where the state publishes its own separate schedule, that one (with half the joint deduction unless a separate deduction is set). Where one schedule applies to every status, that schedule unscaled with the single deduction. Otherwise the joint schedule with every threshold and the deduction halved (computed as the joint tax on twice the income, halved).
Arizona's values · engine step (select_brackets). Sources (Rate schedule): A.R.S. §43-1011 (Version 1) - Taxes and tax rates (checked 2026-10-12)
Head of household The state's head-of-household schedule where it has one, else the single schedule; the head-of-household deduction where set, else the single deduction.
Arizona's values · engine step (select_brackets). Sources (Rate schedule): A.R.S. §43-1011 (Version 1) - Taxes and tax rates (checked 2026-10-12)
The income total every income test uses Other ordinary income + retirement distributions (before any exclusion) + conversion + federally taxable Social Security + long-term gains + Railroad Retirement Tier 2. It stands in for federal adjusted gross income in every threshold, cliff and phase-out below; state subtractions do not reduce it.
engine step (compute_state_tax_detail). Engine convention, no external source: The inputs are the federal AGI components, so their sum is federal AGI for these income types.
Attributing income to each spouse joint returns with each spouse's own amounts given With a caller's split (the API's spouse object), each spouse's own distributions (employer-plan money included), pension, public pension, conversion, wages and military pay; spouse 2's shares are clamped into the household totals and spouse 1 gets the rest. Without a split, in per-person mode, every item is divided 50/50. Social Security is divided by each spouse's own gross benefits where the caller gives spouse.socialSecurityGross, else 50/50; other ordinary income and gains are always divided 50/50 where a rule needs a per-person amount. The split is used only where a state's rule is per taxpayer; household totals stay authoritative for the base and the income tests.
engine step (compute_state_tax_detail). Engine convention, no external source: Equal attribution is the neutral split when the owner of a dollar is not known.
Keeping the per-spouse shares inside the household joint returns with each spouse's own amounts given After the public-pension and employer-pension carve-outs, if the two spouses' remaining shares add up to more than the household's exclusion-eligible distributions (an inconsistent split), spouse 1's share is reduced so they do not.
engine step (compute_state_tax_detail). Engine convention, no external source: Input normalisation.
Military retirement pay The state's military rule runs first, on military pay alone, per taxpayer: each spouse's own pay at their own age when attributed, otherwise half each at the household age on a joint return. Exempt dollars leave the base; the rest become pension dollars for the general retirement rules. Where the state lets a disabled retiree qualify at any age, a disabled person is treated as having reached the rule's age.
Arizona's values · engine step (compute_state_tax_detail). Sources (Military retirement pay): 01022 (checked 2026-10-12); FORMS INDIVIDUAL 2025 140i (checked 2026-09-27)
One taxpayer's military exemption Exempt: all of it (below the age split, up to the younger cap). Capped: up to the cap for the age tier, plus the earned-income bonus below the age split when the taxpayer's own wages exceed the threshold, less the taxpayer's own Social Security where the rule says so. Percentage: the percentage (below the age split, up to the younger cap). Then the income limit: above it the exemption is lost, or phased out over the range where one is set.
Arizona's values · engine step (military_exempt_one). Sources (Military retirement pay): 01022 (checked 2026-10-12); FORMS INDIVIDUAL 2025 140i (checked 2026-09-27)
Capital-loss deduction off the base The deduction comes off the other ordinary income (negative income, as Form 1040 line 7a is), so the base and every state-AGI figure summed from it carry it; WI no more than Wisconsin ordinary income (Schedule WD line 28(c)). States whose base is federal taxable income (with the caller's figure) already have it there and take it only once. Engine 1.13.1: the allowed rental loss comes off the same way, on its own line (rental_loss_deduction).
Arizona's values · engine step (compute_state_tax_detail). Sources (Capital gains): A.R.S. §43-1022 - Subtractions from Arizona gross income (checked 2026-10-12); SB 1331 (2025) Revised Senate Fact Sheet - income tax subtraction; capital gains (checked 2026-10-12); Fact sheet for S.B. 1861 (tax conformity), as enacted (checked 2026-10-12); 2025 Schedule D (Form 1040), Capital Gains and Losses (checked 2026-10-12)
Public pension exemption Public-pension dollars leave the base, uncapped or up to the per-taxpayer cap (each spouse's own public pension against their own cap when attributed), without using up the general exclusion the remaining distributions may claim. Capped-out public dollars stay taxable and cannot draw the private exclusion.
Arizona's values · engine step (compute_state_tax_detail). Sources (Public pensions): A.R.S. §43-1022 - Subtractions from Arizona gross income (checked 2026-10-12); FORMS INDIVIDUAL 2025 140i (checked 2026-09-28)
Social Security exempt None of the federally taxable benefit enters the base.
Arizona's values · engine step (ss_amount_in_state_base). Sources (Social Security): A.R.S. §43-1022 - Subtractions from Arizona gross income (checked 2026-10-12)
Retirement exclusion (household) The distributions eligible for the exclusion go through the exclusion below. Taxable public-pension dollars left by a cap are not eligible; below the IRA age only employer-plan dollars are.
Arizona's values · engine step (compute_state_tax_detail). Sources (IRA, 401(k) and private pensions): A.R.S. §43-1001 - Definitions (checked 2026-10-12)
Conversion taxed or exempt In full-exclusion states a conversion is exempt at the qualifying age (at any age where the state says so). Elsewhere, unless pooled above, it is ordinary income taxed in full.
Arizona's values · engine step (compute_state_tax_detail). Sources (Roth conversions): A.R.S. §43-1001 - Definitions (checked 2026-10-12)
Long-term gains in the base Where gains are taxed as ordinary income: net long-term gain less the flat exclusion (never below zero), times the inclusion share. Elsewhere none enters.
Arizona's values · engine step (compute_state_tax_detail). Sources (Capital gains): A.R.S. §43-1022 - Subtractions from Arizona gross income (checked 2026-10-12); SB 1331 (2025) Revised Senate Fact Sheet - income tax subtraction; capital gains (checked 2026-10-12); Fact sheet for S.B. 1861 (tax conformity), as enacted (checked 2026-10-12); 2025 Schedule D (Form 1040), Capital Gains and Losses (checked 2026-10-12)
Exemption for blindness only when the caller says a person is blind or disabled An extra exemption for each blind person (the filer, and the spouse on a joint return). Where the state's exemption is for a person who is blind or disabled, a disabled person below the state's age limit (if any) qualifies too, one exemption per person either way.
Arizona's values · engine step (compute_state_tax_detail). Sources (Blindness and disability): A.R.S. 43-1023, Exemptions (checked 2026-10-12)
Age subtraction At or above the age: the single amount, or the joint amount on a joint return (both spouses at the household age). In per-person mode, half the joint amount (or the single amount) per qualifying spouse. Plus the low-income amount below the income test; less the military exclusion where the statute says so; limited to the spouse's own income where the statute says so. Where the statute counts income from any source, the taxable remainder of the spouse's own public pension is part of that own income. Where the state says so, the Social Security that offsets a person's amount is that person's own.
Arizona's values · engine step (compute_state_tax_detail). Sources (Age 65+ subtractions and credits): A.R.S. 43-1023, Exemptions (checked 2026-10-12); A.R.S. 43-1022, Subtractions from Arizona gross income (checked 2026-10-12); Schedule 1-A (Form 1040), Additional Deductions (checked 2026-10-12)
Federal senior deduction taken against the state base For each taxpayer 65 or older: the amount, reduced by the rate times the income total above the status's start (joint start on a joint return); none for married filing separately. In the states whose base is federal taxable income it is taken only when the caller does not supply that figure (it is already in it).
Arizona's values · engine step (compute_state_tax_detail). Sources (Age 65+ subtractions and credits): A.R.S. 43-1023, Exemptions (checked 2026-10-12); A.R.S. 43-1022, Subtractions from Arizona gross income (checked 2026-10-12); Schedule 1-A (Form 1040), Additional Deductions (checked 2026-10-12)
State taxable income Other ordinary income + Social Security, retirement income, conversion and gains left in the base − standard deduction − personal exemption − age subtractions.
engine step (compute_state_tax_detail). Engine convention, no external source: The order of subtraction follows the state forms; each amount is sourced at its own step.
No tax at or below zero State taxable income at or below zero returns a tax of 0 (credits are not refundable), unless the state has a tax computed apart from taxable income that still applies (next step).
engine step (compute_state_tax_detail). Engine convention, no external source: Every credit the engine carries is nonrefundable, so nothing below can make a zero tax negative; each credit is sourced at its own step.
Separate-return scaling married filing separately For the halved-joint rule, taxable income is doubled before the schedule and the result halved.
Arizona's values · engine step (compute_state_tax_detail). Sources (Rate schedule): A.R.S. §43-1011 (Version 1) - Taxes and tax rates (checked 2026-10-12)
The rate schedule Each bracket's rate on the part of taxable income inside it, summed. No rounding: the result is carried in full precision.
Arizona's values · engine step (apply_state_brackets). Sources (Rate schedule): A.R.S. §43-1011 (Version 1) - Taxes and tax rates (checked 2026-10-12)
Child credits only when the caller lists dependents A credit per dependent at or under the child age and another per older dependent; none above an income limit where there is one; where the credit is a share of the federal child tax credit, the share of the federal credit the household is allowed (the nonrefundable part up to the federal tax, the refundable part from earned income); reduced per dollar over a threshold, or by a percentage per thousand dollars over a start, where the state says so. Also a credit per disabled dependent child at or under an age, while income is at most the limit. Where the state says so, the child credit is prorated by the state AGI (the base before deductions) over the federal AGI when the state AGI is lower. The federal tax that limits the nonrefundable part is the tax before credits when given; with only the tax after the nonrefundable credits, any tax left means the whole credit was allowed, and none left means the nonrefundable part is taken as zero. Where the state says so, the refundable part for three or more children is the larger of the earned-income route and the Social-Security-tax route.
Arizona's values · engine step (compute_state_tax_detail). Sources (Deductions, exemptions and credits): A.R.S. §43-1041 - Optional standard deduction (checked 2026-10-12); IRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill (checked 2026-10-12); SB1861 / HB4168 (57th Legislature, 2nd Regular Session) Senate Fact Sheet, as enacted (checked 2026-10-12); A.R.S. 43-1041, Standard deduction (checked 2026-10-12); IRS releases tax inflation adjustments for tax year 2026 (checked 2026-10-12); Arizona State Legislature: 01073-01.htm (checked 2026-10-12); 2025 Arizona Form 140 Resident Personal Income Tax Instructions (checked 2026-10-01)
Credits cannot make the tax negative The credits are subtracted and the result floored at zero.
engine step (compute_state_tax_detail). Engine convention, no external source: Every credit the engine carries is nonrefundable; each credit is sourced at its own step.
Qualifying surviving spouse qualifying surviving spouse returns A qualifying surviving spouse (filingStatus qss) is one person on the return, taxed from the single figures with the state's own treatment of the status laid over them: where the state says so, the joint rate schedule, the joint standard deduction, the joint personal exemption, the joint income limits and phase-outs (only those the state sets for joint returns), the married 65+ and blindness amounts, or the head-of-household return; where the state gives the status nothing of its own, the single return. The federal figures the engine derives for the status are the federal qualifying-surviving-spouse ones (the joint standard deduction, the married 65+ amount).
Arizona's values · engine step (state_tax_effective_config). Sources (Rate schedule): A.R.S. §43-1011 (Version 1) - Taxes and tax rates (checked 2026-10-12)
Railroad Retirement benefits only when the caller gives Railroad Retirement benefits Railroad Retirement benefits are never taxed by a state (45 U.S.C. §231m). Tier 2 (railroadRetirementTier2) is in the income total the tests use but never in the base. Tier 1 (railroadRetirementTier1) is a part of the gross benefits (socialSecurityGross); its share of the taxable benefits is taken out of the Social Security every state rule sees, so a state that taxes Social Security never reaches it. Where a state's worksheet says so, the benefits reduce a retirement cap or subtraction (ID, IN, MD, ME, MN: both tiers; MI: the taxable railroad benefits); Minnesota's and Utah's Social Security rules test an income without them, Minnesota's, New Jersey's and California's retirement income tests an income without Tier 2; Ohio and Delaware test their own AGI everywhere, which never holds the benefits.
Arizona's values · engine step (compute_state_tax_detail). Sources (Social Security): A.R.S. §43-1022 - Subtractions from Arizona gross income (checked 2026-10-12)
The capital-loss deduction the state allows With a net capital loss (capitalLoss): the smaller of the loss and the state's limit (the federal $3,000 / $1,500 where the state follows the federal return; MA $2,000, and no more than the interest and dividends); AL the loss less the part carried in, unlimited; PA and NJ none. It comes off the income total the income tests use (and the Social Security worksheets' income); the gross-income filing test (LA) reads the total before it. Engine 1.13.1: with a rental loss (rentalNetIncome below 0, the federal Schedule E line 26 amount) the state allows, the whole loss where the state starts from federal AGI or follows the federal schedule, none in PA and NJ (rental_loss_no_offset): it comes off the same income the same way; a rental profit is other ordinary income.
Arizona's values · engine step (compute_state_tax_detail). Sources (Capital gains): A.R.S. §43-1022 - Subtractions from Arizona gross income (checked 2026-10-12); SB 1331 (2025) Revised Senate Fact Sheet - income tax subtraction; capital gains (checked 2026-10-12); Fact sheet for S.B. 1861 (tax conformity), as enacted (checked 2026-10-12); 2025 Schedule D (Form 1040), Capital Gains and Losses (checked 2026-10-12)
Each spouse's own Social Security joint returns On a joint return, each spouse's own Social Security is the spouse's share of the benefits by spouse.socialSecurityGross when the caller gives it (Tier 1 railroad benefits left out), else half each. It is what the per-spouse rules read: Colorado's per-spouse subtraction, Rhode Island's per-spouse modification, and the Maine, Maryland and other retirement caps reduced by the benefits each spouse received (with each spouse's own railroad benefits where the state counts them).
Arizona's values · engine step (compute_state_tax_detail). Sources (Social Security): A.R.S. §43-1022 - Subtractions from Arizona gross income (checked 2026-10-12)
Refundable state credits The credits paid beyond the tax (reported in refundableCredits; netTax = totalTax less them): earned income credits as a share of the federal EIC with each state's own age band (OK on the 2020 federal credit, DC's own childless schedule, the CalEITC table, MN's Working Family Credit), the NYC EIC and school tax credits, and the property-tax, renter, grocery and senior credits of MA, MI, NJ, ID, HI, NM, OK, AZ, NY, RI, WV, ME, DC, MN, MO, WI, IN and MT, each on its own income measure. Engine 1.13.1: a part-year NYC resident's school tax credits (the Table 2 proration chart and the rate-reduction amount on IT-360.1 line 47; IT-203 lines 60 / 60a for a part-year state resident).
Arizona's values · engine step (state_tax_refundable_credits). Sources (Deductions, exemptions and credits): A.R.S. §43-1041 - Optional standard deduction (checked 2026-10-12); IRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill (checked 2026-10-12); SB1861 / HB4168 (57th Legislature, 2nd Regular Session) Senate Fact Sheet, as enacted (checked 2026-10-12); A.R.S. 43-1041, Standard deduction (checked 2026-10-12); IRS releases tax inflation adjustments for tax year 2026 (checked 2026-10-12); Arizona State Legislature: 01073-01.htm (checked 2026-10-12); 2025 Arizona Form 140 Resident Personal Income Tax Instructions (checked 2026-10-01)

Rate schedule

A flat 2.5% on state taxable income.

Source review notes (what the sources do not state outright, or what the engine does not carry):

azdor.gov returns HTTP 403 to automated fetches, so no Arizona DOR form or rate page could be cited.

A.R.S. §43-1011 (Version 1) - Taxes and tax rates, Arizona State Legislature. Arizona taxes all taxable income at a flat 2.5% for every filing status (A.R.S. §43-1011(A)(9), in effect since tax year 2023). Checked 2026-10-12.

Deductions, exemptions and credits

Standard deduction (or the exemption the engine carries in its place): $16,100 single, $32,200 married filing jointly, $24,150 head of household.

Source review notes (what the sources do not state outright, or what the engine does not carry):

No official Arizona page states the 2026 amounts $16,100 / $32,200 directly; they are derived from the statute's federal-indexing rule plus the IRS 2026 figures.

A.R.S. §43-1041 - Optional standard deduction, Arizona State Legislature. The Arizona standard deduction is $15,750 single / $31,500 married filing jointly (tax year 2025), adjusted each year for inflation in the same manner as the federal basic standard deduction, which gives $16,100 / $32,200 for 2026. Checked 2026-10-12.
IRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill, Internal Revenue Service. The 2026 federal basic standard deduction, to which Arizona's inflation adjustment is tied, is $16,100 single and $32,200 married filing jointly. Checked 2026-10-12.
SB1861 / HB4168 (57th Legislature, 2nd Regular Session) Senate Fact Sheet, as enacted, Arizona State Senate. HB 4168 (Laws 2026, Chapter 140, signed 13 June 2026) set the standard deduction to the federal OBBBA amounts retroactive to 2025 and conformed Arizona to the Internal Revenue Code as of 1 January 2026. Engine 1.7.0: A.R.S. 43-1073.01 (Form 140 line 49): a nonrefundable credit of $125 per dependent under 17 ($100 before HB 4168, retroactive to 2026-01-01) and $25 per older dependent, less 5% for each $1,000 (or fraction) of federal AGI over $200,000 ($400,000 joint). Checked 2026-10-12.
A.R.S. 43-1041, Standard deduction, Arizona Legislature. A separate head-of-household deduction ($23,625 for 2025), adjusted like the federal basic standard deduction, so the 2026 amount is the federal $24,150. Checked 2026-10-12.
IRS releases tax inflation adjustments for tax year 2026, Internal Revenue Service. The 2026 federal standard deduction for heads of household, which the state uses. Checked 2026-10-12.
Arizona State Legislature: 01073-01.htm, Arizona State Legislature. Engine 1.7.0: A.R.S. 43-1073.01 (Form 140 line 49): a nonrefundable credit of $125 per dependent under 17 ($100 before HB 4168, retroactive to 2026-01-01) and $25 per older dependent, less 5% for each $1,000 (or fraction) of federal AGI over $200,000 ($400,000 joint). Checked 2026-10-12.
2025 Arizona Form 140 Resident Personal Income Tax Instructions, Arizona Department of Revenue. Credit for increased excise taxes (engine 1.12.0): $25 per person, at most $100, at low AGI. Checked 2026-10-01.

Age 65+ subtractions and credits

At age 65 or older: $2,100 is subtracted from the base ($4,200 for a married couple filing jointly when both qualify), against any income. With the spouse's age given, each spouse qualifies on their own age.
The federal senior deduction is also taken against the state base: $6,000 for each taxpayer 65 or older, each reduced by 6% of income above $75,000 (single and head of household) or $150,000 (MFJ). Married couples filing separately get none.

A.R.S. 43-1023, Exemptions, Arizona Legislature. An exemption of $2,100 for a taxpayer 65 or older and for a spouse 65 or older on a joint return. Checked 2026-10-12.
A.R.S. 43-1022, Subtractions from Arizona gross income, Arizona Legislature. Paragraph 35 subtracts the federal senior deduction (section 151(d)(5)(C)) from tax year 2025 on. Checked 2026-10-12.
Schedule 1-A (Form 1040), Additional Deductions, Internal Revenue Service. The federal senior deduction: $6,000 per taxpayer 65 or older, reduced by 6% of modified AGI over $75,000 ($150,000 joint); none for married filing separately. Checked 2026-10-12.

Social Security

Social Security benefits are fully exempt: none of the federally taxable amount enters the state base.

API value: socialSecurityRule: "exempt". The engine's input is the federally taxable amount; income tests use the sum of the income components as the adjusted-gross-income proxy.

A.R.S. §43-1022 - Subtractions from Arizona gross income, Arizona State Legislature. Arizona subtracts the full amount of Social Security and railroad retirement benefits included in federal AGI, so these benefits are fully exempt. Checked 2026-10-12.

IRA, 401(k) and private pensions

No exclusion: pension, annuity and IRA/401(k) distributions are taxed as ordinary income.

A.R.S. §43-1001 - Definitions, Arizona State Legislature. Arizona gross income starts from federal adjusted gross income, so taxable IRA, 401(k) and private-pension distributions are taxed in Arizona; §43-1022 provides no subtraction for them. Checked 2026-10-12.

Public pensions

Public (government) pension dollars, entered as pensionPublic, are exempt up to $2,500 per person receiving it; dollars above the cap are taxed. On a joint return each spouse's own pensionPublic gets its own $2,500 when the spouse object gives the spouses' own amounts; without it the engine assumes the household's public pension is split between the spouses (up to $5,000 together). They do not use up the capped exclusion that other retirement income may claim.

A.R.S. §43-1022 - Subtractions from Arizona gross income, Arizona State Legislature. Arizona allows a subtraction of up to $2,500 for pensions from the federal civil service and other federal systems and from Arizona public retirement systems; military retired pay is fully subtracted. Checked 2026-10-12.
FORMS INDIVIDUAL 2025 140i, Arizona Department of Revenue (archived copy). Arizona Department of Revenue: "If both you and your spouse receive such pension income, each spouse may subtract the amount received or $2,500, whichever is less." Checked 2026-09-28.

Military retirement pay

Military retirement pay is fully exempt, at any age.
Rules are applied per taxpayer at that person's own age when the spouse's age is given. API value: rules.militaryRetirement.treatment: "exempt".

01022, Arizona Legislature. Military retirement pay is fully subtracted from Arizona income for tax years after 2020; each spouse subtracts their own. Checked 2026-10-12.
FORMS INDIVIDUAL 2025 140i, Arizona Department of Revenue (archived copy). Military retirement pay is fully subtracted from Arizona income for tax years after 2020; each spouse subtracts their own. Checked 2026-09-27.

Roth conversions

A conversion is taxed as ordinary income in full. It does not draw any retirement-income exclusion.

A.R.S. §43-1001 - Definitions, Arizona State Legislature. Arizona gross income is federal AGI, so the taxable amount of a traditional-to-Roth conversion is taxed in Arizona as ordinary income; no subtraction for conversions exists in §43-1022. Checked 2026-10-12.

Capital gains

75% of net long-term gain enters the base (25% is excluded) and is taxed at ordinary rates.
Short-term gains are ordinary income.

Source differs from the engine. The source shows 25% subtraction only for assets acquired after December 31, 2011; the engine carries 75%. The engine assumes gains are on assets bought after 2011 (75% taxed); it has no acquisition-date input, so gain on older assets is under-taxed by 2.5% of 25% of it. This difference is open and listed on the verification page.

A.R.S. §43-1022 - Subtractions from Arizona gross income, Arizona State Legislature. Arizona subtracts 25% of net long-term capital gain included in federal AGI, but only for gain from assets acquired after 31 December 2011; the rest is taxed at the 2.5% rate. Checked 2026-10-12.
SB 1331 (2025) Revised Senate Fact Sheet - income tax subtraction; capital gains, Arizona State Senate. SB 1331 (2025) proposed extending the 25% subtraction to all assets from tax year 2026; the bill was not enacted, so the post-2011 acquisition limit still applies. Checked 2026-10-12.
Fact sheet for S.B. 1861 (tax conformity), as enacted, Arizona State Legislature. The state return starts from federal adjusted gross income (federal taxable income in CO, IA, ND), so the federal capital-loss deduction (up to $3,000, $1,500 married filing separately) and its carryover are in the state base (engine 1.9.0: cap_loss_limit). Checked 2026-10-12.
2025 Schedule D (Form 1040), Capital Gains and Losses, Internal Revenue Service. The federal return deducts a net capital loss up to $3,000 ($1,500 married filing separately) on Form 1040 line 7a; a state that starts from federal adjusted gross income or federal taxable income carries that deduction. Checked 2026-10-12.

Blindness and disability

An extra exemption of $1,500 for each person who is blind (the filer, and the spouse on a joint return).
The API applies these through its blind, disabled, spouse.blind and spouse.disabled fields; absent means false.

A.R.S. 43-1023, Exemptions, Arizona Legislature. An exemption of $1,500 for each blind taxpayer (central visual acuity of 20/200 or less, or a field of 20 degrees or less). Arizona has no disability exemption. Checked 2026-10-12.

Part-year and nonresident returns

Part-year resident (Form 140PY): the tax on the state's own income (what was received while a resident, plus the state-source income while a nonresident), with the deductions and exemptions the form prorates scaled by its ratio.
Nonresident (Form 140NR): the tax on the state's own income (what was received while a resident, plus the state-source income while a nonresident), with the deductions and exemptions the form prorates scaled by its ratio.
The ratio: the federal AGI of the state's income over the federal AGI of the whole year, rounded to 3 places, at most 1.
Prorated on a part-year return: the personal exemptions, the age-65 subtraction or exemption, the per-person credits, dependent exemptions.
Prorated on a nonresident return: the standard deduction, the personal exemptions, the age-65 subtraction or exemption, the per-person credits, dependent exemptions.
A nonresident's retirement income is not taxable by the state (4 U.S.C. §114); the API refuses it in residency.stateIncome. The credit for tax paid to another state and the earned income credits on these returns are not computed.

Married couples whose residency differs (engine 1.13.0)

With residency.spouse on a joint request, each allowed treatment is calculated and reported in residency.couple; tax is the required one, else the state's default, else the couple's residency.election, else the joint return the request's mfj names. Each rule is quoted from the state's instructions (engine 1.14.0: and its statutes, regulations, bulletins and other official guidance) in the sources below.

Spouses	Arizona's rule
One spouse a full-year resident, the other a part-year resident	the couple's choice: a joint part-year / nonresident return or separate returns.
One spouse a full-year resident, the other a nonresident	the couple's choice: a joint part-year / nonresident return or separate returns.
One spouse a part-year resident, the other a nonresident	the couple's choice: a joint part-year / nonresident return or separate returns; the joint return is not calculated: Arizona's instructions name the joint form only for a spouse married to a full-year resident (140PY or 140NR); for a part-year resident married to a nonresident they do not say which form or column rule applies.
Both part-year residents, different resident periods	the couple's choice: a joint part-year / nonresident return or separate returns.
Both nonresidents, only one with income from the state	the couple's choice: a joint part-year / nonresident return or separate returns.

Arizona Form 140PY 2025 Part-Year Resident Personal Income Tax Return Instructions (Wayback copy), Arizona Department of Revenue. Part-year / nonresident return (engine 1.12.0, residency): Arizona gross income (resident-period income + AZ-source nonresident-period income) less subtractions, less PRORATED exemptions (age 65, blind, other, qualifying parent) and deductions, taxed at flat 2.5%. Part-year: standard deduction NOT prorated; itemized = resident-period + AZ-source + portion of others. Nonresident: standard deduction and itemized deductions prorated by the Arizona income ratio. Dependent tax credit apportioned by ratio. Checked 2026-10-01.
Arizona Form 140NR 2025 Nonresident Personal Income Tax Return Instructions (Wayback copy), Arizona Department of Revenue. Part-year / nonresident return (engine 1.12.0, residency): Arizona gross income (resident-period income + AZ-source nonresident-period income) less subtractions, less PRORATED exemptions (age 65, blind, other, qualifying parent) and deductions, taxed at flat 2.5%. Part-year: standard deduction NOT prorated; itemized = resident-period + AZ-source + portion of others. Nonresident: standard deduction and itemized deductions prorated by the Arizona income ratio. Dependent tax credit apportioned by ratio. Checked 2026-10-01.
Arizona Form 140PY Part-Year Resident Personal Income Tax Return Instructions 2025, Arizona Department of Revenue. Married couples whose residency differs (engine 1.13.0): Checked 2026-10-06.
Arizona Form 140NR Nonresident Personal Income Tax Return Instructions 2025, Arizona Department of Revenue. Married couples whose residency differs (engine 1.13.0): Checked 2026-10-06.

Worked examples

Computed by the engine for the fixed households below (the same ones for every state, so states compare directly). Federal tax is not supplied, so a federal-tax deduction is not taken; the income tests use the sum of the components as income.

Household (engine inputs)	State tax
Single, 67: $30,000 private pension, $20,000 IRA, $10,000 interest, $24,000 Social Security ($17,000 federally taxable), $5,000 long-term gain	$999.25
Married filing jointly, 70: $40,000 public pension, $40,000 IRA, $20,000 interest, $40,000 Social Security ($34,000 federally taxable), $10,000 long-term gain	$1,352.50
Single, 60: $60,000 other ordinary income and a $50,000 Roth conversion	$2,347.50
Married filing jointly, 66: $30,000 IRA, a $40,000 Roth conversion, $30,000 Social Security ($25,500 federally taxable)	$540
Single, 58: $36,000 military retirement pay and $30,000 wages	$347.50
Married filing jointly, ages 67 and 61: $50,000 IRA, $10,000 interest, $30,000 Social Security ($25,500 federally taxable), each spouse's age given	$492.50

Line by line

The intermediate lines the engine records while it computes each example (its detail record, printed as it comes out; lines that are zero are left out). The engine's documentation build checks that the lines add up to the taxable income and the tax, for every state, filing status and a grid of households. Each line links the engine step that produces it.

Single, 67: $30,000 private pension, $20,000 IRA, $10,000 interest, $24,000 Social Security ($17,000 federally taxable), $5,000 long-term gain: $999.25

Line	Amount
Income total used by the income tests	$82,000
+ Other ordinary income in the base	$10,000
+ Retirement income in the base	$50,000
+ Long-term gain in the base	$3,750
− Standard deduction	$16,100
− Age subtractions and deductions	$7,680
= State taxable income	$39,970
Tax from the rate schedule	$999.25
= Tax before credits	$999.25
= Tax	$999.25

Married filing jointly, 70: $40,000 public pension, $40,000 IRA, $20,000 interest, $40,000 Social Security ($34,000 federally taxable), $10,000 long-term gain: $1,352.50

Line	Amount
Income total used by the income tests	$144,000
Retirement income and conversions excluded (not in the base)	$5,000
+ Other ordinary income in the base	$20,000
+ Retirement income in the base	$75,000
+ Long-term gain in the base	$7,500
− Standard deduction	$32,200
− Age subtractions and deductions	$16,200
= State taxable income	$54,100
Tax from the rate schedule	$1,352.50
= Tax before credits	$1,352.50
= Tax	$1,352.50

Single, 60: $60,000 other ordinary income and a $50,000 Roth conversion: $2,347.50

Line	Amount
Income total used by the income tests	$110,000
+ Other ordinary income in the base	$60,000
+ Roth conversion in the base	$50,000
− Standard deduction	$16,100
= State taxable income	$93,900
Tax from the rate schedule	$2,347.50
= Tax before credits	$2,347.50
= Tax	$2,347.50

Married filing jointly, 66: $30,000 IRA, a $40,000 Roth conversion, $30,000 Social Security ($25,500 federally taxable): $540

Line	Amount
Income total used by the income tests	$95,500
+ Retirement income in the base	$30,000
+ Roth conversion in the base	$40,000
− Standard deduction	$32,200
− Age subtractions and deductions	$16,200
= State taxable income	$21,600
Tax from the rate schedule	$540
= Tax before credits	$540
= Tax	$540

Single, 58: $36,000 military retirement pay and $30,000 wages: $347.50

Line	Amount
Income total used by the income tests	$66,000
Military pay excluded (not in the base)	$36,000
+ Other ordinary income in the base	$30,000
− Standard deduction	$16,100
= State taxable income	$13,900
Tax from the rate schedule	$347.50
= Tax before credits	$347.50
= Tax	$347.50

Married filing jointly, ages 67 and 61: $50,000 IRA, $10,000 interest, $30,000 Social Security ($25,500 federally taxable), each spouse's age given: $492.50

Line	Amount
Income total used by the income tests	$85,500
+ Other ordinary income in the base	$10,000
+ Retirement income in the base	$50,000
− Standard deduction	$32,200
− Age subtractions and deductions	$8,100
= State taxable income	$19,700
Tax from the rate schedule	$492.50
= Tax before credits	$492.50
= Tax	$492.50

After 2026: how the amounts move

A request with projection (API) estimates a later tax year from these rules: every dollar amount and age test below moves the way Arizona's law moves it. Rates and the rules themselves stay the 2026 ones (how projection works).

Amounts (engine fields)	After 2026	What the law says, and the source
`std_deduction_single`, `std_deduction_mfj`, `std_deduction_hoh`	Indexed: chained CPI-U, in the same manner as the federal basic standard deduction (IRC 63(c)(7)(B)(ii)); the increase rounded down to a multiple of $50.	A.R.S. 43-1041(A),(H): $15,750 single/MFS, $23,625 HOH, $31,500 joint (HB 4168, retroactive to 2025), adjusted each year for inflation in the same manner as the federal basic standard deduction under IRC 63 (chained CPI, increases rounded down to $50), so the Arizona amounts track the federal ones ($16,100/$24,150/$32,200 for 2026). A.R.S. § 43-1041 (Arizona State Legislature, statute): Base amounts and the federal-method inflation adjustment. Quoted: "the standard deduction is $15,750"; "for inflation in the same manner in which the federal basic standard deduction is adjusted for inflation pursuant to section 63 of the internal revenue code". Checked 2026-10-12. 26 U.S.C. 63 (taxable income defined) (Cornell LII (U.S. Code), federal): The federal method: chained CPI, rounded down to $50. Quoted: "the $23,625 and $15,750 amounts in subparagraph (A) shall each be increased by an amount equal to"; "such increase shall be rounded to the next lowest multiple of $50.". Checked 2026-10-12.
`senior_subtraction_single`, `senior_subtraction_mfj`, `blind_exemption`	Fixed in law: held at the rules-year amount in every later year.	A.R.S. 43-1023: $2,100 per taxpayer/spouse 65 or older and $1,500 per blind taxpayer; no inflation adjustment in the section. A.R.S. § 43-1023 (Arizona State Legislature, statute): Fixed amounts. Quoted: "A taxpayer is allowed an exemption of $2,100:"; "A taxpayer is allowed an exemption of $1,500:". Checked 2026-10-12.
`senior_subtraction_min_age`	Attained age: the same age in every year.	The $2,100 exemption requires having attained 65 before the close of the taxable year: a fixed attained age. A.R.S. § 43-1023 (Arizona State Legislature, statute): Age 65. Quoted: "If the taxpayer has attained sixty-five years of age before the close of the taxable year". Checked 2026-10-12.
`public_pension_exclusion_cap_single`, `public_pension_exclusion_cap_mfj`	Fixed in law: held at the rules-year amount in every later year.	A.R.S. 43-1022: up to $2,500 of U.S./Arizona public pensions per recipient is subtracted; fixed amount. A.R.S. § 43-1022 (Arizona State Legislature, statute): Fixed $2,500. Quoted: "Benefits, annuities and pensions in an amount totaling not more than $2,500 received from one or more of the following:". Checked 2026-10-12.
`dep_child_credit`, `dep_other_credit`, `dep_credit_phaseout_start_single`, `dep_credit_phaseout_start_mfj`, `az-dep-credit-step` (a table held in code)	Fixed in law: held at the rules-year amount in every later year.	A.R.S. 43-1073.01: $125 per dependent under 17 and $25 per older dependent, reduced 5% per $1,000 (or part) of federal AGI over $200,000 ($400,000 joint); fixed amounts. A.R.S. § 43-1073-01 (Arizona State Legislature, statute): Fixed credit amounts and thresholds. Quoted: "$125 for each dependent who is under seventeen years of age at the end of the taxable year."; "$25 for each dependent who is at least seventeen years of age at the end of the taxable year."; "is less than $400,000 for a married couple filing a joint return"; "minus five percent for each $1,000, or fraction thereof". Checked 2026-10-12.
`dep_child_credit_max_age`	Attained age: the same age in every year.	The $125 credit is for a dependent under 17 at year end (engine: 16 or younger): a fixed age. A.R.S. § 43-1073-01 (Arizona State Legislature, statute): Under 17. Quoted: "for each dependent who is under seventeen years of age at the end of the taxable year.". Checked 2026-10-12.
`fed_senior_deduction`	Enacted schedule: 2027: $6,000; 2028: $6,000; 2029: $0; held at the 2029 value after 2029.	The federal senior deduction of IRC 151(d)(5)(C) is $6,000 per qualified individual for taxable years beginning before January 1, 2029, and nothing after: $6,000 in 2027 and 2028, $0 from 2029. HB 4168 (Laws 2026, Ch. 140) summary as enacted (Arizona State Senate, legislation): Arizona subtracts the amount deducted under the federal senior deduction (from 2025). Quoted: "amount deducted for a qualified senior, who turns 65 years old during the taxable year, under the federal income tax deduction for seniors". Checked 2026-10-12. 26 U.S.C. 151 (allowance of deductions for personal exemptions) (Cornell LII (U.S. Code), federal): The deduction exists only for taxable years beginning before 2029. Quoted: "In the case of a taxable year beginning before January 1, 2029, there shall be allowed a deduction in an amount equal to $6,000". Checked 2026-10-12.
`fed_senior_phaseout_single`, `fed_senior_phaseout_mfj`	Fixed in law: held at the rules-year amount in every later year.	The federal senior deduction phases out above modified AGI of $75,000 ($150,000 joint); these amounts are fixed in IRC 151(d)(5)(C)(iii) with no inflation adjustment (and the deduction itself ends after 2028). 26 U.S.C. 151 (allowance of deductions for personal exemptions) (Cornell LII (U.S. Code), federal): Fixed phase-out thresholds. Quoted: "as exceeds $75,000 ($150,000 in the case of a joint return)". Checked 2026-10-12.
`cap_loss_limit`, `cap_loss_limit_mfs`	Fixed in law: held at the rules-year amount in every later year.	The state follows the federal net capital loss limit of IRC 1211(b): $3,000 ($1,500 MFS), a fixed amount with no inflation adjustment. 26 U.S.C. 1211 (limitation on capital losses) (Cornell LII (U.S. Code), federal): The capital-loss deduction against ordinary income is a fixed $3,000 ($1,500 MFS); section 1211 contains no inflation adjustment. Quoted: "$3,000 ($1,500 in the case of a married individual filing a separate return), or". Checked 2026-10-12.
`az-excise-credit` (a table held in code)	Fixed in law: held at the rules-year amount in every later year.	A.R.S. 43-1072.01: $25 per person, at most $100, at federal AGI of $12,500 / $25,000; fixed. 2025 Arizona Form 140 Resident Personal Income Tax Instructions (Arizona Department of Revenue, instructions): Credit for Increased Excise Taxes (Form 140 line 56) - refundable Quoted: "Form 140, page 1, line 12 is $25,000 or less."; "line 12 is $12,500 or less.". Checked 2026-10-01.

Enacted for later years, not applied by the projection

None found: the research found no change enacted for years after 2026 beyond the schedules above.

What the engine does not calculate, and known approximations

The 25% long-term gain subtraction is applied to all gains; Arizona limits it to assets acquired after 2011, and the engine has no acquisition date.
Form 140 rounds each line to whole dollars; the engine computes 2.5% of the unrounded taxable income (differences under $1).
The exemption for a qualifying parent or grandparent, and the exemption for a person 65 or older whose nursing or medical costs the filer pays, are not calculated: they need facts the dependents input does not carry. Sources: A.R.S. §43-1041 - Optional standard deduction (checked 2026-10-12); IRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill (checked 2026-10-12); SB1861 / HB4168 (57th Legislature, 2nd Regular Session) Senate Fact Sheet, as enacted (checked 2026-10-12); A.R.S. 43-1041, Standard deduction (checked 2026-10-12); IRS releases tax inflation adjustments for tax year 2026 (checked 2026-10-12); Arizona State Legislature: 01073-01.htm (checked 2026-10-12); 2025 Arizona Form 140 Resident Personal Income Tax Instructions (checked 2026-10-01).
Interest on U.S. government obligations is not subtracted (Form 140 line 28): the ordinary income input does not say which interest comes from them. Sources: A.R.S. §43-1041 - Optional standard deduction (checked 2026-10-12); IRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill (checked 2026-10-12); SB1861 / HB4168 (57th Legislature, 2nd Regular Session) Senate Fact Sheet, as enacted (checked 2026-10-12); A.R.S. 43-1041, Standard deduction (checked 2026-10-12); IRS releases tax inflation adjustments for tax year 2026 (checked 2026-10-12); Arizona State Legislature: 01073-01.htm (checked 2026-10-12); 2025 Arizona Form 140 Resident Personal Income Tax Instructions (checked 2026-10-01).
Pay for active service in the armed forces, the reserves or the National Guard (Form 140 line 32), and wages an enrolled tribal member earned on the reservation (line 31), are not subtracted: the wages input does not say where the pay comes from. Sources: 01022 (checked 2026-10-12); FORMS INDIVIDUAL 2025 140i (checked 2026-09-27).
The subtractions for qualified tips and overtime pay deducted on the federal return are not calculated: the wages input does not separate them. Sources: A.R.S. §43-1041 - Optional standard deduction (checked 2026-10-12); IRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill (checked 2026-10-12); SB1861 / HB4168 (57th Legislature, 2nd Regular Session) Senate Fact Sheet, as enacted (checked 2026-10-12); A.R.S. 43-1041, Standard deduction (checked 2026-10-12); IRS releases tax inflation adjustments for tax year 2026 (checked 2026-10-12); Arizona State Legislature: 01073-01.htm (checked 2026-10-12); 2025 Arizona Form 140 Resident Personal Income Tax Instructions (checked 2026-10-01).
Contributions to 529 college savings plans and ABLE accounts (Form 140 line 34), long-term care insurance premiums, adoption expenses, child and dependent care expenses above the federal credit, and the charitable increase to the standard deduction (line 44) are not calculated: they need expenses the inputs do not carry. Sources: A.R.S. §43-1041 - Optional standard deduction (checked 2026-10-12); IRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill (checked 2026-10-12); SB1861 / HB4168 (57th Legislature, 2nd Regular Session) Senate Fact Sheet, as enacted (checked 2026-10-12); A.R.S. 43-1041, Standard deduction (checked 2026-10-12); IRS releases tax inflation adjustments for tax year 2026 (checked 2026-10-12); Arizona State Legislature: 01073-01.htm (checked 2026-10-12); 2025 Arizona Form 140 Resident Personal Income Tax Instructions (checked 2026-10-01).
Public pensions paid by other states' retirement systems do not qualify for the Arizona public pension subtraction (Form 140 line 29a); the engine cannot tell them apart and subtracts every public pension entered, so enter only a federal or Arizona system pension as a public pension here. Sources: A.R.S. §43-1022 - Subtractions from Arizona gross income (checked 2026-10-12); FORMS INDIVIDUAL 2025 140i (checked 2026-09-28).
On a separate return, the blind exemption for a blind spouse who has no Arizona income, and the exemption for a stillborn child, are not calculated: the inputs do not carry those facts. Sources: A.R.S. 43-1023, Exemptions (checked 2026-10-12).
The small business income election (Form 140-SBI, a separate computation for business, interest and gain income) is not calculated. Sources: A.R.S. §43-1011 (Version 1) - Taxes and tax rates (checked 2026-10-12).
The property tax credit (Form 140PTC) is not calculated: it is claimed on its own return. Sources: A.R.S. §43-1041 - Optional standard deduction (checked 2026-10-12); IRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill (checked 2026-10-12); SB1861 / HB4168 (57th Legislature, 2nd Regular Session) Senate Fact Sheet, as enacted (checked 2026-10-12); A.R.S. 43-1041, Standard deduction (checked 2026-10-12); IRS releases tax inflation adjustments for tax year 2026 (checked 2026-10-12); Arizona State Legislature: 01073-01.htm (checked 2026-10-12); 2025 Arizona Form 140 Resident Personal Income Tax Instructions (checked 2026-10-01).
Married couples whose residency differs (engine 1.13.0): when one spouse is a part-year resident and the other a nonresident, the joint return is not calculated: Arizona's instructions name the joint form only for a spouse married to a full-year resident (140PY or 140NR); for a part-year resident married to a nonresident they do not say which form or column rule applies. Sources: Arizona Form 140PY 2025 Part-Year Resident Personal Income Tax Return Instructions (Wayback copy) (checked 2026-10-01); Arizona Form 140NR 2025 Nonresident Personal Income Tax Return Instructions (Wayback copy) (checked 2026-10-01); Arizona Form 140PY Part-Year Resident Personal Income Tax Return Instructions 2025 (checked 2026-10-06); Arizona Form 140NR Nonresident Personal Income Tax Return Instructions 2025 (checked 2026-10-06).

What the engine does not calculate for any state (itemized deductions, credits beyond those listed, part-year residents, and more) is listed on the calculation order page.

Verification

Worksheet-tested Arizona Form 140 (TY2025 instructions with official 2026 figures: std deduction $16,100/$24,150/$32,200) replayed line by line — lines 12-24 capital-gain subtraction, 29a public pension, 29b military, 30 Social Security, 36 other subtractions (HB 4168 senior subtraction), 38 age-65 exemption, 42-46 — in backend/tests/test_state_worksheets_1.c.

Golden scenarios (hand-computed expected tax, asserted to within $1): F05.
State-specific unit tests: test_group2_ltcg_partial_exclusion, test_credit_programs_1, test_dependents_by_state, test_c_states, test_worked_ratios, test_ratio_rules, test_az_public_pension, test_blind_with_age, test_hoh_and_credit_gaps.
Structural tests covering every state: 9.
State forms and worksheets followed in the test derivations: Arizona Form 140 (2025) lines 12-46 and instructions; Form 140 line 24 net long-term capital gain subtraction (25%); Form 140 line 29a public pension exclusion (per spouse, $2,500); Form 140 line 29b uniformed-services retired pay; Form 140 line 30 Social Security subtraction; Form 140 line 38 age 65 exemption ($2,100); A.R.S. 43-1022 para 35 federal senior deduction subtraction (federal Schedule 1-A Part V); Form 140 line 50 family income tax credit worksheet (no effect without dependents).