A member of the military who is an Arizona resident must report all income no matter where he or she is stationed, including military pay. If the person was an Arizona resident when entering the service, he or she remains an Arizona resident until a new domicile is established.
All pay received for active duty military service, to the extent it is included in federal AGI, is subtracted from income.
A member of the military who is not an Arizona resident, but is stationed in Arizona, is not subject to Arizona tax on military pay, but must report any other income earned in Arizona.
Under the Military Spouses Residency Relief Act, a military spouse’s state of residence does not change when moving to a new state to be with a service member stationed there if the residence or domicile is the same for the service member and spouse.
