If you love sunshine, “dry heat,” mild winters, and the unique landscapes of the Southwest, then yes! Phoenix, AZ, is an excellent place to retire. However, there are a few points that might make this “Silicon Desert” less attractive to some. A wickedly hot summer might feel oppressive to people from colder regions, and traffic can be a concern for those who need to drive during rush hour.
At 55places.com, we aim to match active retirees with the ideal retirement communities. Today, we’ll cover why Phoenix, AZ, is a good place to retire. Let’s start with the state’s tax-friendly environment, which is a huge financial benefit for retirees considering moving to Phoenix. Then, we’ll explore some of the awesome activities you can enjoy here.
Phoenix Is Tax-Friendly
If you’re coming from a heavily taxed state, you might be stunned by how much farther your money goes when the government keeps its hands off it.
Social Security Income Is Not Taxed in Arizona
You might save thousands of dollars every year on state income taxes (and even more for couples with two Social Security checks every month) if you are moving from a state like Utah or Vermont. In just a few years, those savings could add up to tens of thousands of dollars.
This is one reason so many retirees love Phoenix. You’ve worked hard your entire life to pay into Social Security, and you deserve to keep these funds and enjoy them.
There Is No Inheritance Tax or Estate Tax in Arizona
Some states tax inheritances and estate distributions when a person passes away, especially if the assets are left to someone other than an immediate relative (such as a child or spouse).
Arizona does not tax inheritances or estates. Therefore, high-net-worth individuals know their legacy will continue as intended in Phoenix, even if their beneficiaries are not considered immediate family by the government. If you wish to leave a $20 million estate to your friend, you can do it tax-free in Phoenix.
Property Taxes Are Reasonable in Phoenix
Compared to the rest of the U.S., Phoenix-area property taxes are very reasonable. As of December 2025, Phoenix property owners pay about half the property taxes that residents in other major cities pay.
Low-Income Retirees Are Property Tax Exempt at Age 65
Once property owners turn 65, they may be exempt from paying property taxes on their main residence in Arizona and can freeze property valuations to prevent property taxes from increasing over time.
This could equal thousands of dollars in your pocket each year, but you need to live in your main residence for at least nine months out of the year and live in Arizona for two years to be eligible.
Retirement Fund Distributions Are Taxed as Income
Keep in mind: Traditional IRA withdrawals and other pre-tax retirement distributions are usually taxable as ordinary income in Phoenix, AZ.
Now that we’ve explored the financial reasons people love to retire in Phoenix, let’s explore the culture and activities.
Phoenix Will Keep You Busy Outdoors
There are many fun outdoor activities in Phoenix. And with more than 1.4 million people over 65 in Arizona, you could meet plenty of peers to enjoy them with.
Golf Is Popular
According to the City of Phoenix, Phoenix is home to five championship-level 18-hole golf courses and three 9-hole courses. If you are interested in golfing but inexperienced (or intimidated), Phoenix offers dozens of resources for you, like:
- Golf lessons
- Driving ranges
- And dozens of sporting goods stores around the city
And, with more than 300 sunny days every year, you will have every opportunity to enjoy them to the fullest.
WalkPHX: Self-Led Walking Tours
Phoenix encourages healthy outdoor activity with WalkPHX, a grant-funded program that keeps walking paths well-kept throughout the city’s parks.
As of December 2025, there are 54 scenic walking paths you can enjoy for free. They are all considered “easy” or “beginner” level hikes and are less than one mile long. You can walk your dogs with a leash on these paths, or visit a local dog park
Phoenix Is Dog-Friendly
Are you a dog lover? Phoenix offers 11 dog parks for a fun day out with your best friend. Note, they are usually closed during the hottest “dog days” of summer for lawn care and re-seeding. That makes sense, as Phoenix summers are usually very hot.
These dog parks are all well fenced, with double-gated entrances. Naturally, females in heat are prohibited, and people are expected to clean up after their pets. Also, the local area boasts plenty of:
- Dog groomers
- Pet-friendly restaurants
- And other ways you can spend your day with like-minded people and pets
Finally, if you love to travel, Phoenix offers an international airport for easy access.
Phoenix Sky Harbor International Airport (PHX) Makes Travel Easy
If your retirement plans include world travel, Phoenix is an excellent place to retire. Just take an Uber or Lyft to Sky Harbor Airport and travel the world. Or, if you’re interested in aviation hobbies, there are a handful of private airports nearby. You could take helicopter or glider lessons, or visit the Arizona Commemorative Air Force Museum in Phoenix on a winter day.
FAQ: Is Phoenix a Good Place to Retire?
Is Phoenix, AZ, a good place to retire?
Phoenix is a popular retirement destination for its warm, dry climate, abundant sunshine, golf, and large network of 55+ communities, but it’s best for retirees who can handle very hot summers.
What are the pros and cons of retiring in Phoenix?
Pros include mild winters, lots of outdoor recreation, and an active adult lifestyle scene. Cons often include extreme summer heat, higher summer electric bills, and traffic in busy corridors.
What is the cost of living in Phoenix for retirees?
Many retirees find Phoenix more affordable than coastal California and some major metro areas, though housing costs and insurance can vary widely by neighborhood and the broader market.
Are property taxes high in Phoenix?
Property taxes in the Phoenix area are often considered moderate compared to many other large U.S. cities, but your rate depends on your home value, location, and local assessments.
Does Arizona tax Social Security for retirees?
Arizona does not tax Social Security benefits at the state level, which is a common reason retirees consider moving to Phoenix.
Are pensions and 401(k)/IRA withdrawals taxed in Arizona?
Many retirement withdrawals (like traditional IRA/401(k) distributions) are typically taxed as income by Arizona, so it’s important to plan how you’ll draw retirement funds.
What are Phoenix summers like for retirees?
Summers are extremely hot, often with long stretches of triple-digit temperatures. Many retirees adjust by scheduling activities early, staying hydrated, and prioritizing indoor amenities in summer.
Is Phoenix a good place to retire for golf and outdoor activities?
Yes, Phoenix is well known for golf, hiking, walking trails, and outdoor recreation during fall through spring, when the weather is ideal for being outside.
Are there many 55+ communities in Phoenix?
Yes. The Phoenix metro is one of the most active adult-friendly regions in the U.S., with many age-restricted communities offering amenities such as pools, pickleball courts, fitness centers, and clubs.
Do retirees like living in Phoenix year-round or as snowbirds?
Both. Some retirees live in Phoenix full-time, while others snowbird there for the mild winters and return north for summer—especially if they prefer cooler temperatures.
What should retirees consider before moving to Phoenix?
Key considerations include your comfort with extreme heat, summer utility costs, access to health care, proximity to airports and family, and whether a 55+ community lifestyle fits your goals.
Is Phoenix, AZ, a Good Place to Retire? Our Final Thoughts
At 55places.com, we know everyone envisions their retirement differently. Phoenix is a good place to retire if you enjoy outdoor activities like golf or hiking, and it is very pet-friendly. The tax environment is very favorable, and many other retirees already live here.
Ready to find the right 55+ community in the Phoenix area? Contact us at 55places.com, and we’ll connect you with a trusted local real estate agent who understands the 55+ lifestyle and knows the Phoenix market inside and out. Whether you’re looking for low-maintenance living, great amenities, or the perfect location near family and health care, we’re here to help you take the next step with confidence!
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