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I am active duty military and an AZ state resident, but I do not owe taxes and I won't be receiving a state tax return. Do I still have to file state taxes?
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Yes, you should file an AZ state tax return.
AZ excludes active-duty military pay from state tax, but still requires residents to file a tax return if they have $15,000 or more in gross income. You will end up excluding your military pay from AZ taxable income, but you have to report it first.
See the attached chart of AZ Filing Thresholds.
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