AZ: ARIZONA'S PRO-BUSINESS ENVIRONMENT
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Business First Skip to Content ARIZONA'S PRO-BUSINESS ENVIRONMENT | Business First MOVING AT THE SPEED OF BUSINESS Arizona provides world-class advantages—including top talent, a strong supply chain and modern transportation infrastructure. The state's business climate is sunny, steady and predictable. Arizona offers lowered taxes, streamlined regulation, and a comprehensive suite of programs designed to enhance business success. #1 Most Competitive State in The Mountain Region Site Selection Magazine Prosperity Cup, 2025 TOP 2 Economic Performance Rich States, Poor States Ranking 2025 TOP 4 Best State for Business Chief Executive Magazine, 2024 TOP 8 Private Sector Job Growth Arizona Office of Economic Development, 2024-2025 2.5% Flat Income Tax Lowest flat-tax in the U.S. 4.9% Corporate Income Tax Among the Lowest in the U.S. NO Franchise Tax, Business Inventory Tax, Estate Tax, Worldwide Unitary Tax, Gross Receipts Tax LOW BUSINESS COST Arizona’s simplified and competitive tax structures makes Arizona one of the most welcoming states in the nation for people and business. Affordable Business STREAMLINED REGULATION Arizona offers a winning combination of smart leadership and smart policy enabling an innovation-driven economy that accelerates technologies and streamlines regulation. Smart Policy Top Talent Arizona's talent is young, skilled and rapidly growing. With endless adventures and high-impact career options, Arizona attracts the best and brightest. Skilled Talent ACCESS TO MAJOR WORLD MARKETS Arizona's southwest location near the world’s largest economies efficiently enables the movement of goods and people, enhancing the speed of doing business. Modern Infrastructure EXCEPTIONAL QUALITY OF LIFE With more than 300 days of sunshine and limitless opportunity, Arizona is the best place in the nation to live, work and recreate. Life in Arizona Arizona News 3/27/2026 Arizona’s Global Leadership Shines At International State of the State PHOENIX, AZ (March 27, 2026) – Amid record international investment and trade, Arizona welcomed leaders from around the world for the 21st Annual International State of the State on March 26. Highlighting Arizona’s strong international partnerships and central role in the global economy, Governor Hobbs delivered a keynote address to over 300 attendees, including dignitaries from more than 40 countries. In recent months, Arizona has signed new multi-national agreements, expanded trade offices, and opened new doors for collaboration in research, workforce development, and innovation. Arizona has also emerged as the No. 1 state in the nation for foreign direct investment. To further Arizona’s international momentum, state leaders–led by the Phoenix Committee on Foreign Relations and the Arizona Commerce Authority–hosted an International State of the State Forum, showcasing Arizona’s premier investment environment, international partnerships, and global leadership. READ MORE about Ari