The 2004 total gross state product was $187 billion. If Arizona (and each of the other US states) were an independent country along with all existing countries (2005), it would have the 61st largest economy in the world (CIA - The World Factbook). This figure gives Arizona a larger economy than such countries as Ireland, Finland, and New Zealand. Arizona currently has the 21st largest economy among states in the United States.
The state's per capita income is $27,232, 39th in the U.S. Early in its history, Arizona's economy relied on the "Five C's": copper, cotton, cattle, citrus, and climate (tourism). At one point Arizona was the largest producer of cotton in the country. Copper is still extensively mined from many expansive open-pit and underground mines, accounting for two-thirds of the nation's output.
Employment
The state government is Arizona's largest employer, while Wal-Mart is the state's largest private employer, with 17,343 employees (2003).
In 2001, 161,166 Arizonans were employed in the high-tech sector, accounting for about 8.3% of total private-sector employment of more than 1.9 million. High-tech payroll in 2001 was $2.2 billion, or 14.7% of the private-sector total. High-tech employment was led by software and computers, with 34,314; electronics components manufacturing, 30,358; aerospace manufacturing, 25,641; architectural and engineering services, 21,378; telecommunications, 21,224; and instruments manufacturing, 13,056.
Taxation
Arizona collects personal income taxes in five brackets: 2.87%, 3.20%, 3.74%, 4.72% and 5.04%.
|
Single |
Tax Rate |
Joint |
Tax Rate |
|---|---|---|---|
|
0 - $10,000 |
2.870% |
0 - $20,000 |
2.870% |
|
$10,000 - $25,000 |
3.200% |
$20,001 - $50,000 |
3.200% |
|
$25,000 - $50,000 |
3.740% |
$50,001 - $100,000 |
3.740% |
|
$50,000 - $150,001 |
4.720% |
$100,000 - $300,001 |
4.720% |
|
$150,001 + |
5.040% |
$300,001 + |
5.040% |
Arizona Transaction Privilege Tax (sales) and Use tax rates generally are 6.3%.
The state rate on transient lodging (hotel/motel) is 7.27%. The state of Arizona does not levy a state tax on food for home consumption or on drugs prescribed by a licensed physician or dentist. However, some cities in Arizona do levy a tax on food for home consumption.
All fifteen Arizona counties levy a tax.
Incorporated
municipalities also levy transaction
privilege taxes which, with the
exception of their hotel/motel tax,
are generally in the range of
1-to-3%. These added assessments
could push the combined sales
tax rate to
as high as 10.7%.