Arizona has inched up a bit in tax competitiveness, according to a recent analysis.
The Tax Foundation’s State Competitiveness Index ranked the Grand Canyon State No. 14 nationally for 2026, up a spot from the No. 15 spot it had previously held on the index since 2023. And that was down from No. 19 in 2022.
The index looks at more than 150 variables to come up with separate assessments for corporate taxes, individual income taxes, sales and excise taxes, property and wealth taxes and unemployment insurance taxes. The final ranking is drawn from those results.
The Grand Canyon State leads the nation for its unemployment tax, with the Tax Foundation saying the state “has one of the most efficient unemployment insurance tax systems in the nation.”
