Retirement Retired Life

11 Underrated Reasons Arizona Is Perfect For Retirement (We Love #9)

There's always the promise of sun in The Grand Canyon State.

By Heather Bien

Edited by Calista Headrick

Updated Dec. 17, 2025

Retirees always seem to be chasing the sun, beautiful landscapes, and the promise of lower taxes. Who could blame them? That's why many people end up viewing Arizona as a destination for a stress-free retirement.

But is "The Grand Canyon State" an ideal place to retire? If you're looking at the incredible landscape, jaw-dropping views, and the lack of an estate tax, then yes. Here's what you need to know before you decide to plant your golden-year roots in Arizona.

Lots of retirees

It's nice moving to a place where you'll have a built-in community. According to a ranking from U-Haul, Arizona was the sixth most popular state for retirees to move to in 2024, and that means you'll likely find lots of new friends who are in a similar life stage to you.

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Sunshine year-round

Arizona gets only around eight inches of rain annually, which means most of your days will be spent basking in the sunshine. While the summer sun can be oppressive, you won't complain about temperatures from late fall through spring, when you can expect highs to hit between 66 and 85.

Tax-friendly policies for retirees

Taxes are a big consideration for those living on a fixed income, and Arizona has its retirees in mind. First, Arizona's income tax is only 2.5%. Second, your Social Security benefits won't be taxed in Arizona, and there are exemptions on retirement income.

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Good health care

Arizona has the Mayo Clinic and Banner Health System, both of which are nationally ranked health care systems. There are also top-ranked hospitals across the major cities in the state. Wherever you go, there is bound to be excellent health care within a short drive.

Outdoor recreation

Staying active is a top priority for many in their golden years, and Arizona is brimming with activities for adventurous retirees. Whether you're hiking desert trails, mountain biking, bird watching, or even camping, you'll never run out of terrain to explore and ways to save money traveling around the state.

Great golf

Want to work on your golf game now that you have free weekdays ahead of you? Arizona, particularly Scottsdale, is home to fantastic golf courses. You can work on your swing while looking out at incredible desert views. Plus, many of the courses are affordable to play, which is a bonus for those on a fixed income.

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A range of retirement communities

If you want options when it comes to picking the right retirement community, then Arizona could be the right spot for you. Over 150 active adult communities exist in Arizona, with many around Sun City and Green Valley.

Diverse arts and culture

Arizona is a place unlike any other, with arts and culture that represent a range of people and groups throughout history.

There are museums like the Phoenix Art Museum and the Heard Museum, which look at Arizona's Native American populations. There's the Desert Botanical Garden, Lowell Observatory, and even the Musical Instrument Museum.

Few allergies

This may not have been at the top of your list when you were looking at retirement considerations, but Arizona's climate doesn't lend itself to growing the type of vegetation that causes allergies. That means you could go sniffle-free throughout your later years.

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So many sports

If you love cheering on a hometown team, Arizona gives you more than a few to pick from. There's the Arizona Cardinals NFL team, the Diamondbacks MLB team, and the Phoenix Suns NBA team. And, with commitment-free days ahead, you have all the time to go to afternoon games.

No estate tax

If what happens to your wealth after you're gone is a top concern, then you'll be glad to know that Arizona does not have an estate tax or an inheritance tax. This means more of your money goes toward the people you love rather than the government.

Bottom line

While there's no perfect place to retire, it's important to go in with a clear vision.

While Arizona's heat may be oppressive to some, the abundance of sunshine and the low income tax could outweigh any negatives. Take a moment to carefully consider your priorities and how they align with your dream retirement location when planning for retirement.

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