The Economy of Arizona had a total

gross state product Gross regional domestic product (GRDP), gross domestic product of region (GDPR), or gross state product (GSP) is a statistic that measures the size of a region's economy. It is the aggregate of gross value added (GVA) of all resident producer unit ...

of $373 billion in 2020. The composition of the state's economy is moderately diverse; although health care, transportation and the government remain the largest sectors. The state's per capita income is $40,828, ranking 39th in the U.S. The state had a

median household income The median income is the income amount that divides a population into two equal groups, half having an income above that amount, and half having an income below that amount. It may differ from the mean (or average) income. Both of these are ways of ...

of $50,448, making it 22nd in the country and just below the U.S. national mean. Early in its history, Arizona's economy relied on the "five C's": copper (see ''

Copper mining in Arizona Copper mining in Arizona, a state of the United States, has been a major industry since the 19th century. In 2007, Arizona was the leading copper-producing state in the country, producing 750 thousand metric tons of copper, valued at $5.54 billi ...

''), cotton, cattle,

citrus ''Citrus'' is a genus of flowering plant, flowering trees and shrubs in the rue family, Rutaceae. Plants in the genus produce citrus fruits, including important crops such as Orange (fruit), oranges, Lemon, lemons, grapefruits, pomelos, and lim ...

, and

climate Climate is the long-term weather pattern in an area, typically averaged over 30 years. More rigorously, it is the mean and variability of meteorological variables over a time spanning from months to millions of years. Some of the meteorologic ...

(tourism). Copper is still extensively mined from many expansive open-pit and underground mines, accounting for two-thirds of the nation's output.

Employment

Total employment 2016 *2,379,409 Total employer establishments 2016 *139,134 The state government is Arizona's largest employer, while

Banner Health Banner Health is a non-profit health system in the United States, based in Phoenix, Arizona. It operates 30 hospitals and several specialized facilities across 6 states. The health system is the largest employer in Arizona and one of the largest ...

is the state's largest private employer, with over 39,000 employees (2016). , the state's unemployment rate was 5.4%. The top employment sectors in Arizona are (August 2014, excludes agriculture):

Largest employers

According to ''

The Arizona Republic ''The Arizona Republic'' is an American daily newspaper published in Phoenix. Circulated throughout Arizona, it is the state's largest newspaper. Since 2000, it has been owned by the Gannett newspaper chain. Copies are sold at $2 daily or at $3 ...

'', the largest private employers in the state were:

Taxation

Arizona collects personal

income tax An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Tax ...

es in five brackets: 2.59%, 2.88%, 3.36%, 4.24% and 4.54%. The state

transaction privilege tax Transaction privilege tax (TPT) refers to a gross receipts tax levied by the state of Arizona on certain persons for the privilege of conducting business in the state. TPT differs from the "true" sales tax imposed by many other U.S. states as it i ...

is 5.6%; however, county and municipal sales taxes generally add an additional 2%. The state rate on transient lodging (hotel/

motel A motel, also known as a motor hotel, motor inn or motor lodge, is a hotel designed for motorists, usually having each room entered directly from the parking area for motor vehicles rather than through a central lobby. Entering dictionaries ...

) 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 In a tax system, the tax rate is the ratio (usually expressed as a percentage) at which a business or person is taxed. There are several methods used to present a tax rate: statutory, average, marginal, and effective. These rates can also be p ...

to as high as 10.7%.

References

{{Economy of the United States by jurisdiction

Employment

Largest employers

Taxation

See also

References