The 2006 total gross state product was $232 billion. If Arizona (and each of the other US states) were an independent country along with all existing countries (2005), it would have the 61st largest economy in the world (CIA - The World Factbook). This figure gives Arizona a larger economy than such countries as Ireland, Finland, and New Zealand. Arizona currently has the 21st largest economy among states in the United States. As a percentage of its overall budget, Arizona's projected 1.7 billion deficit for '09 is one of the largest in the country, behind such states as California, Michigan, and Florida, to name a few.
The state's per capita income is $27,232, 39th in the U.S. Arizona had a median household income of $46,693 making it 27th in the country and just shy of the US national median. Early in its history, Arizona's economy relied on the "Five C's": copper (see Copper mining in Arizona), cotton, cattle, citrus, and climate (tourism). At one point Arizona was the largest producer of cotton in the country. Copper is still extensively mined from many expansive open-pit and underground mines, accounting for two-thirds of the nation's output.
The state government is Arizona's largest employer, while Wal-Mart is the state's largest private employer, with 17,343 employees.
Arizona collects personal income taxes in five brackets: 2.87%, 3.20%, 3.74%, 4.72% and 5.04%. The 'sales tax' is generally around 6.3%.
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%.