Does Arizona Give Seniors a Break?

Debra is evaluating places to which she might retire, and contacted me with a question. Well, actually, about six questions.

I have a question.....I will be relocating to Phoenix within the next year, and I would like to know if AZ is one of the States that has Federal (or State) tax on Seniors, those over 55, (like when one files their income tax, do Seniors have to pay federal or state tax)....are Seniors exempt from any of these taxes? What tax advantages does AZ offer to Seniors, do all restaurants offer Senior discounts, and what, if any, are the tax breaks for Seniors, from housing, real estate property tax, car tax (?). I would like to know all the tax advantages for Seniors that AZ has to offer.....

Here's my response to Debra.

I believe I understand your question, but just to be safe, Arizona has no say on what your Federal taxes will be. Seniors have to pay Federal taxes in accordance with the current Federal tax laws.

Generally, from what I've read, states and other government entities will find it increasingly difficult to justify preferential treatment on the basis of age, since as our population gets older, there are more people over 55 and most of them are not impoverished. With the growth that Arizona has experienced over the past two decades, I'm not sure that Arizona has an official interest in offering incentives to attract people over 55 to move here.

Homeowners in Maricopa County who meet certain income restrictions and valuations limits may have the level of their property taxes frozen or may receive certain exemptions. You might also be interested in knowing that Arizona does not tax Social Security benefits.

If you are retired, your retirement income and/or pension is taxable in Arizona. As far as I know, the only income tax benefit that is based on age only applies to personal exemptions for those that are 65 or older.

There is no discount on auto registration for seniors, nor is there a break on the personal property tax that we pay each year on our cars. As far as community benefits for seniors, yes, of course we have stores, attractions, and restaurants that offer discounts for seniors, although 55 may not be the required age to avail oneself of the discount. Maricopa County has a discount drug card for anyone, but it will only be a benefit for those without prescription coverage through medical insurance or Medicare.

We have plenty of Senior Centers in the area that might interest you. Not only are there activities and programs at those centers, but meals at significantly reduced prices are offered. You'll have to check with them to see if there are age restrictions to take advantage of their offerings. Discounts on public transportation only kick in after age 65.

I can't possibly advise "...all the tax advantages for Seniors that AZ has to offer" but if you have something else in mind, you are welcome to post your question in the About.com Phoenix, AZ forum. The more specific your question, the more likely you'll get some responses.