The Hidden Truth About Arizona's Flat Tax for Retirees

Are you retiring in Arizona or planning to move there? Arizona’s flat tax might sound simple, but for high-income retirees, it can have unexpected effects on your retirement income.

In this video, Andrew Rafal,founder of Bayntree Wealth Advisors, breaks down how Arizona’s 2.5% flat income tax works, the recent federal SALT deduction changes in 2025, and the planning blind spots that could cause you to overpay taxes without realizing it.

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In this video, you'll learn:
✅ How Arizona’s flat tax differs from the old tiered brackets
✅ Which retirement income is fully taxed—and which isn’t (like Social Security)
✅ Planning blind spots that could increase your state and federal taxes
✅ How the 2025 SALT cap change can impact your deductions
✅ Steps to make your retirement income more tax-efficient

While this video focuses on Arizona, many of these strategies and blind spots are relevant for retirees in other flat-tax states, including: Colorado, Georgia, Idaho, Illinois, Indiana,Iowa, Kentucky, Louisiana, Michigan, Mississippi, North Carolina, Pennsylvania,and Utah.

If you live in one of these states or are planning to retire in one of them, this video can help you understand how a flat tax might impact your retirement income and what steps you can take to avoid overpaying.