It depends. You should have the MN Public Employee Retirement Association (PERA) stop withholding MN state tax, even though the will not withhold Arizona (AZ).
If your MN Public Employee Retirement Association (PERA) will not withhold Arizona (AZ) withholding then you may have to pay estimated tax for 2026. AZ does tax pension income. The income not taxed by AZ is the following:
- Interest in US government obligations
- Social Security benefits
- Active duty military and National Guard pay
- Benefits, annuities, and pensions as retired or retainer pay of the US Armed Services
- Arizona does not have an estate or inheritance tax
When Am I Required to File an Estimated Payment?
You must make Arizona estimated income tax payments during 2026 if Your Arizona gross income for 2026 exceeds:
- Single, Married Filing Single or Head of Household - $75,000
- Married Filing Joint - $150,000
If your retirement income will be less than the amount above for your filing status in 2026, you can pay your tax balance due when you file your tax return in 2027.
If you choose to file estimated tax payment you can select it in TurboTax or use the link below to estimate and pay your AZ for 2026:
As indicated by xmasbaby0, you will need to complete both the Minnesota (MN) and Arizona (AZ) tax returns for 2025 assuming you did live in MN for part of the year.
@rlenka1959
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