Cost of Living & Taxes


Cost of Living

Tucson and Southern Arizona is comparable to some of the most affordable markets west of the Mississippi and provides our region a competitive edge. With a Cost of Living Index at 95.8, Tucson and Southern Arizona enjoy a high-quality lifestyle that is less expensive than major markets like Phoenix, Portland, Denver and Las Vegas.

City Cost of Living Index
(Nationwide Average = 100)
San Antonio, TX 94.4
El Paso, TX 88.7
Tucson, AZ 95.8
Salt Lake City, UT 99.4
Colorado Springs, CO 99.6
Albuquerque, NM 96.3
Austin, TX 100
Phoenix, AZ 97.1
Las Vegas, NV 97.8
Denver, CO 106
Portland, OR 101.7
San Diego, CA 116.3
Source: U.S Bureau of Economic Analysis via MAP (mapazdashboard.arizona.edu)

Taxation

Arizona’s tax structure is competitive and business-friendly, and the worker’s compensation and unemployment insurance costs are among the lowest in the United States. With a low flat-rate corporate tax and a decreasing individual tax burden, Southern Arizona gains a competitive advantage over most communities and states in the nation.
 
Per Capita
In 2017, Arizona state and local general sales tax collections were $1,325 per capita. Arizona ranks 13th out of the 50 states in per capita state sales tax amount. Arizona state and local property tax collection per capita is $986 placing Arizona 33rd out of the 50 states.

Sales Tax Rates
  Arizona
State Corporate Income Tax Rate 4.9%
Rank 28
Ave. Local Tax Rate 2.77%
Combined Tax Rate 8.37%
Rank 11
Maximum Local Rate 5.6%
Source: TaxFoundation.org, Sales Tax Clearinghouse, Tax Foundation Calculations; 2019

State Unemployment Tax Rate
  Arizona
Wages Subject to Tax $7,000
Minimum Rate 0.03%
Maximum Rate 8.91%
New Employer Rate 2.00%
Source: taxpolicycenter.org, U.S. Department of Labor; Feb 2017

Tax Burden
The residents of Arizona have the tenth-lowest income tax burden in the United States. According to The Tax Foundation, Arizona taxpayers pay $574 per capita in state and local income taxes. Estimated now at 8.8% of income, Arizona's state and local tax burden percentage is below the national average of 9.9%.

State Tax Breakdown
 
  Arizona Notes
Individual Income Tax Rate 2.59% > $0
2.88% > $11,047
3.36% > $27,614
4.24% > $55,226
4.54% > $165,674
Arizona has no individual county or city income tax.
Corporate Income Tax Rate 2016: 5.5%
2017: 4.9%
2018: 4.9%
2019: 4.9%
Corporations incur no conty or city taxes.
Arizona is also not a unitary tax state.
Corporate Franchise Tax 0% Arizona has no corporate franchise tax


 

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