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%.
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State Tax Breakdown
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| 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 |