Arizona Form 140PY – Part-Year Resident Income Tax Return

Last reviewed: 2025-11-16

Use the Arizona Tax Form Calculator Form 140PY: Arizona Part-Year Resident Income Tax Return as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 Arizona state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

Arizona Form 140PY is the official income tax return for individuals who were Arizona residents for only part of the year. This includes people who moved into Arizona, moved out of Arizona, or were otherwise considered residents for only a portion of the tax year. Form 140PY ensures that taxpayers pay Arizona tax only on the income earned during their Arizona residency period, while still requiring federal income components to calculate accurate prorated deductions, exemptions and credits.

Unlike the full-year resident return (Form 140) or the nonresident return (Form 140NR), the part-year return must distinguish income earned while a resident from income earned outside that period. The form includes sections for federal adjusted gross income, Arizona adjustments, Arizona-source income during residency, a required part-year allocation ratio, exemptions, standard deductions, charitable contribution increases, tax calculations, credits, payments and final balances due or refundable. The 140PY design ensures fair taxation by applying proration rules that match the taxpayer’s actual time spent as a resident.

How Arizona Form 140PY Works

Form 140PY follows a structured sequence to compute a part-year resident’s Arizona tax obligation. Each line aligns with Arizona’s residency and sourcing rules, ensuring income is taxed appropriately. Key components include:

1. Federal adjusted gross income (AGI): This baseline value (line 6) is used for prorating deductions and exemptions.
2. Arizona income earned during the resident period: Wages, pensions, tips, business income and other items earned while residing in Arizona appear on line 7.
3. Additions and subtractions: Line 8 and line 9 adjust federal AGI to determine part-year Arizona-modifed income.
4. Adjusted federal income for the part-year period: Line 10 combines federal AGI and adjustments.
5. Arizona adjusted income: Line 12 modifies resident-period income for additions and subtractions.
6. Part-year allocation ratio: Line 13 divides Arizona income by federal adjusted income, capped at 1.00. This ratio prorates exemptions and deductions for the residency portion.
7. Exemptions and prorated values: Lines 14–19 apply age 65, blind and dependent exemptions, then prorate them using the allocation ratio.
8. Standard deductions and charitable contribution increases: Arizona fixed deduction values apply, plus an increase equal to 33% of qualifying charitable contributions.
9. Tax computation: The flat Arizona tax rate (2.5%) applies to taxable income on line 24.
10. Credits and payments: Dependent credits, family income tax credits, withholding, estimated payments and refundable credits reduce the tax owed.
11. Final balance or refund: Lines 37–45 determine tax due, overpayment, refund and penalties.

This calculator replicates every 140PY line and worksheet, allowing taxpayers to generate a complete and accurate return aligned with Arizona Department of Revenue rules.

Arizona Part-Year Residency Rules

Arizona taxes individuals based on their residency status and the income they earn while residing in the state. A person is a Part-Year Resident if they moved into or out of Arizona during the year, meaning part of their income is taxable to Arizona and part is not. Form 140PY applies proration to ensure only the applicable portion of income, deductions and exemptions apply.

Arizona usually taxes the following during the resident period:

• Wages earned while physically living in Arizona
• Business income from an Arizona location
• Rental income from Arizona property
• Gambling winnings earned in Arizona
• Retirement or pension income if received while a resident

Income not taxable during the nonresident period includes:

• Wages earned after leaving Arizona
• Wages earned before moving to Arizona
• Interest and dividends (unless part of prorated adjustments)
• Out-of-state business income earned fully outside Arizona

The allocation ratio on line 13 ensures accurate apportionment. This ratio directly affects prorated exemptions and the amount of income considered taxable to Arizona. Accurate separation of resident-period and nonresident-period income is essential to producing a correct result.

Form 140PY also includes worksheets for dependent credits, exemption values, and standard deduction increases. This calculator handles all worksheets automatically and ensures compliance with the Arizona Department of Revenue’s 2024 instructions.

Additional Resources

• Arizona Department of Revenue
• Arizona Form 140 – Full-Year Resident Calculator
• Arizona Form 140NR – Nonresident Calculator
• Arizona Form 140A – Short Form Calculator
• Arizona Form 140EZ – EZ Form Calculator

Individuals who moved into or out of Arizona should review Form 140PY guidelines carefully. Using the calculator ensures accurate prorating of income and deductions, prevents common residency-based filing errors and helps produce a correct tax or refund result.

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Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.