Yes, Arizona residents are taxed on pension income, including California pensions. See below for some exceptions.
If you are now an Arizona resident, you are taxed on the same income you report for federal purposes, including income earned and retirement from other states including California.
If you moved during the year, you are taxed on your income from all sources as a California resident up to the date you changed residency.
Those individuals taxed on income earned in another state and in Arizona may earn a credit for taxes paid. Please see Arizona Form 309 instructions or Income Tax Ruling (ITR) 06-1 for more information.
Additionally, as a general rule, the same portion of an individual’s pension is taxable for Arizona purposes as it is for federal. Arizona does allow, however, a subtraction for pensions from the state of Arizona, its political subdivisions, or from U.S. government service, including the U.S. military. The amount of the subtraction can be found on the instructions of the appropriate Arizona individual tax filing form.
See this Arizona Department of Revenue webpage for more information.
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