Economy of Arizona

The Economy of Arizona had a total gross state product $508   billion in 2023. The composition of the state's economy is moderately diverse; although health care, transportation and the government remain the largest sectors.

Arizona's per capita income was $61,652 in 2023, ranking 33rd in the U.S. The state had a median household income of $74,568, making it 19th 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.

Employment
Total employment 2016 Total employer establishments 2016
 * 2,379,409
 * 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). , 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 largest private employers in the state were:

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%.