Economy of Arizona facts for kids
The Economy of Arizona had a total gross state product 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 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), cotton, cattle, citrus, and climate (tourism). Copper is still extensively mined from many expansive open-pit and underground mines, accounting for two-thirds of the nation's output.
Contents
Employment
Total employment 2016
- 2,379,409
Total employer establishments 2016
- 139,134
The state government is Arizona's largest employer, while Banner Health is the state's largest private employer, with over 39,000 employees (2016). As of March 2016[update], the state's unemployment rate was 5.4%.
The top employment sectors in Arizona are (August 2014, excludes agriculture):
| Sector | Employees (thousands) |
|---|---|
| Trade, transportation, and utilities | 488.6 |
| Government | 408.5 |
| Education and health services | 392.1 |
| Professional and business services | 384.2 |
| Leisure and hospitality | 286.4 |
| Financial activities | 193.2 |
| Manufacturing | 156.0 |
| Construction | 118.2 |
| Other services | 88.2 |
| Information | 41.8 |
| Mining and logging | 13.7 |
Largest employers
According to The Arizona Republic, the largest private employers in the state as of 2016[update] were:
| Rank | Company | Employees | Industry |
|---|---|---|---|
| 1 | Banner Health | 39,800 | Health care |
| 2 | Walmart Stores, Inc. | 34,900 | Discount retailer |
| 3 | Kroger Co. | 16,900 | Grocery stores |
| 4 | McDonald's Corp. | 15,200 | Food service |
| 5 | Wells Fargo & Co. | 15,100 | Financial services |
| 6 | Albertsons Inc. | 14,500 | Grocery stores, retail drugstores |
| 7 | Intel Corp. | 11,300 | Semiconductor manufacturing |
| 8 | HonorHealth | 10,600 | Health care |
| 9 (tie) | American Airlines | 10,000 | Airline |
| Home Depot Inc. | 10,000 | Retail home improvement | |
| Honeywell International Inc. | 10,000 | Aerospace manufacturing | |
| 12 | Bank of America Corp. | 9,800 | Financial services |
| 13 | Raytheon Co. | 9,600 | Defense (missile manufacturing) |
| 14 | JP Morgan Chase & Co. | 9,500 | Financial services |
| 15 | Bashas' Supermarkets | 8,500 | Grocery stores |
| 16 | Target Corp. | 8,200 | Discount retailer |
| 17 | Freeport-McMoRan Copper & Gold Inc. | 8,000 | Mining |
| 18 | Dignity Health | 8,000 | Health care |
| 19 | CVS Health | 7,200 | Pharmaceutical services (including retail drugstores) |
| 20 | American Express Co. | 7,100 | Financial services |
| 21 | Circle K Corp. | 6,800 | Convenience stores |
| 22 | UnitedHealthcare | 6,000 | Health care |
| 23 | Pinnacle West Capital Corp. | 6,400 | Electric utility |
| 24 | Mayo Foundation | 6,300 | Health care |
| 25 | Amazon.com | 6,000 | Online Shopping |
Taxation
Arizona collects personal income taxes in five brackets: 2.59%, 2.88%, 3.36%, 4.24% and 4.54%. The state transaction privilege tax is 5.6%; however, county and municipal sales taxes generally add an additional 2%.
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%.
| Single | Tax rate | Joint | Tax rate |
|---|---|---|---|
| 0 – $10,000 | 2.59% | 0 – $20,000 | 2.59% |
| $10,000 – $25,000 | 2.88% | $20,001 – $50,000 | 2.88% |
| $25,000 – $50,000 | 3.36% | $50,001 – $100,000 | 3.36% |
| $50,000 – $150,001 | 4.24% | $100,000 – $300,001 | 4.24% |
| $150,001 + | 4.54% | $300,001 + | 4.54% |
See also
- List of power stations in Arizona
