Arizona has the 14th best tax structure in America, according to a new report.
The Tax Foundation recently released its 2026 State Tax Competitiveness Index, which examines states’ tax structures and ranks them.
Arizona ranked "fairly well" with most of its taxes, said Nicole Fox, a policy analyst for the Tax Foundation. She noted the state fell short with its sales tax.
The foundation has published this report since 2003. Arizona has ranked between 14th and 18th on the index since 2020, Fox told The Center Square this week. “Arizona has a fairly competitive tax system."
The index ranks states according to five categories: corporate tax, individual income tax, sales tax, property tax and unemployment insurance tax.
The report said Arizona ranked first in America in unemployment insurance tax, which funds unemployment benefits.
For individual income tax, Arizona ranked ninth in the country. Fox said Arizona had the eighth lowest income tax in America, with a flat rate of 2.5%. Arizona is tied with North Dakota for the lowest individual income tax among states that have one, she said.
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