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, Arizona gains a competitive advantage and is the Tucson region's partner in economic development.

Per Capita

In 2009, Arizona state tax collections were $1,812 per capita. Arizona ranks 40st out of the 50 states in per capita state tax amount.

Tax Burden

The state and local tax burden ranking in Arizona has dropped 24 places from the 17th highest in 1977 to the 40th in 2009. The residents of Arizona now have the tenth-lowest tax burden in the United States. According to The Tax Foundation Arizona taxpayers pay $3,244 per capita in state and local taxes. Estimated now at 8.5% of income, Arizona's state and local tax burden percentage is below the national average of 9.7%.

The State of Arizona does not levy the following taxes:

• No corporate franchise tax
• No business inventory tax
• No income tax on dividends from out-of-state subsidiaries
• No worldwide unitary tax
• No sales tax on manufacturing equipment
• Aggressive accelerated depreciation schedules
• 100% of net operating loss may be carried forward for 5 years

Contact TREO
For more information about doing business in the Tucson region, contact our Business Development team at 520-243-1900 or 866-600-0331, or by clicking here.