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Tucson Economy and Taxes

 

The Tucson economy continues to remain robust as an increase in jobs draws more people to our city and maintains a higher then average employment rate.  In 2006, Tucson reported an unemployment rate of just 3.7%, with an annual job growth rate of 4.1%. A large portion of Tucsonans are likely to be employed in the defense,  hi-tech, or  telecommunications  industries.  Major employers include Raytheon Missle Systems , Carondelet Health Network , Honeywell  and University of Arizona.  Due to the extremely large number of visitors Tucson entertains each year (4.5 million according to the Arizona Office of Tourism) , the tourism industry supports over 50,000 jobs and brings in a gross revenue exceeding $2 billion annually.  The majority of Tucson jobs are service related (31%),  with government, trade and construction jobs following closely behind.

Tucson's population has exploded since 2000, growing at three times the rate for the United States as a whole. In 2006 Tucson reached the 1 million mark, which is three years earlier then  predicted. Pima County's population grows at an annual rate of 2.4%, while the towns of Oro Valley and Marana have reported increases of 6.1% and 13.4% respectfully over the last four years.

The cost of living in Tucson is approximately 2.7% lower then the national average, which is another reason new residents decide to call the "Old Pueblo" home.   State sales tax in Tucson is 6.1%, plus an additional 2% for Tucson and Oro Valley and 2.5% for Marana.  These taxes are for all sales except groceries and prescriptions.  Some utility companies charge an additional 2% utility tax, and residents using the city's infrastructure incur an additional 1.5% city tax.  State personal income taxes range from 2.88-5.04% based on income. Residential property is assessed at 10% of the fair market value, which usually amounts to about 1.1% of the property's sales price.

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