The economy of Arizona had a total gross state product in 2025 of $598.1billion. The composition of the state's economy is moderately diverse, although health care, transportation and the government remain the largest sectors. Early in its history, Arizona's economy relied on the "five C's": copper, cotton, cattle, citrus, and climate. Copper is still extensively mined from many expansive open-pit and underground mines, accounting for two-thirds of the nation's output.
As of 2025, Arizona's largest trading partners include Mexico, Taiwan, Canada, and China.
Arizona's per capita personal income was $68,283 in 2025, ranking 36th in the U.S. The state's 2023 median household income was $74,568, ranking 19th in the country and just below the U.S. national mean.
Sectors Copper mining began in the state in the 19th century. Cotton cultivation declined after peaks in the 20th century. After the 1990s, "home building and development displaced most of the large scale orchards" that constituted the state's citrus industry. Arizona's cattle industry has grown since the early 20th century. Arizona's climate drives its tourism and agricultural industries in fall and winter.
Intel has operated in the state for more than forty years. TSMC's chip plants in the state are "the largest single foreign investment project in U.S. history."
Employment
Total employment (April 2025): 3,633,200 Total employer establishments (2016): 139,134
In 2025, 99.5% of Arizona businesses were small businesses and employed 42.% of the state's work force.
The state government is Arizona's largest employer, while Banner Health is the state's largest private employer, with more than 40,000 employees in the state as of 2016.
, the state's unemployment rate was 4.1%. Seasonally adjusted nonfarm employment in Arizona was as follows: SectorApril 2025August 2020Trade, transportation, and utilities 618,100553,300Education and health services 556,200459,400Government 435,100430,400Professional and business services 461,200419,200Leisure and hospitality 367,900269,400Financial activities 242,000231,900Manufacturing 192,800170,900Construction 225,300169,900Other services 106,80095,600Information 47,70046,100Mining and logging 15,70013,300
Largest employers
According to The Arizona Republic, the largest private employers in the state were: RankCompanyEmployeesIndustry1Banner Health44,718Healthcare2Walmart Stores, Inc.34,071Discount retailer3Kroger Co.20,530Grocery stores4Wells Fargo & Co.16,161Financial services5Albertsons Inc.14,500Grocery stores, retail drugstores6McDonald's Corp.13,000Food service7CVS Health12,100Healthcare8Raytheon Co.12,000Defense9HonorHealth11,919Healthcare10Dignity Health10,562Healthcare11Intel Corp.10,400Semiconductor manufacturing12Home Depot Inc.10,200Retail home improvement13 (tie)JP Morgan Chase & Co.10,000Financial servicesAmerican Airlines10,000Airline15Tenet Healthcare9,483Healthcare16Bank of America Corp.9,200Financial services17Freeport-McMoRan Copper & Gold Inc.8,759Mining18Bashas' Supermarkets8,519Grocery stores19Amazon.com8,500Online shopping20Target Corp.8,400Discount retailer21Honeywell International Inc.7,792Aerospace manufacturing22Circle K Corp.7,478Convenience stores23Mayo Foundation7,436Healthcare24State Farm7,200Insurance25UnitedHealthcare7,194Healthcare
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 rate0 – $10,0002.59%0 – $20,0002.59%$10,000 – $25,0002.88%$20,001 – $50,0002.88%$25,000 – $50,0003.36%$50,001 – $100,0003.36%$50,000 – $150,0014.24%$100,000 – $300,0014.24%$150,001 +4.54%$300,001 +4.54%
See also List of power stations in Arizona Copper mining in Arizona
References