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|
|Salt Lake City, UT||99.4|
|Colorado Springs, CO||99.6|
|Las Vegas, NV||97.8|
|San Diego, CA||116.3|
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.
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
|State Corporate Income Tax Rate||4.9%|
|Ave. Local Tax Rate||2.77%|
|Combined Tax Rate||8.37%|
|Maximum Local Rate||5.6%|
Source: TaxFoundation.org, Sales Tax Clearinghouse, Tax Foundation Calculations; 2019
State Unemployment Tax Rate
|Wages Subject to Tax||$7,000|
|New Employer Rate||2.00%|
Source: taxpolicycenter.org, U.S. Department of Labor; Feb 2017
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
|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%
|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|