More businesses are moving to Arizona. The cost of living in Arizona is affordable compared to other states, and the newly dubbed Silicon Desert is now home to many business headquarters.

For example, in Phoenix, the metro area has witnessed a surge in many businesses and tech companies over the last few years. Companies like Microchip Technology Inc., which manufactures microcontrollers, analog, and Flash-IP circuits, or the fortune 1000 member, First Solar Inc., which manufactures solar panels and provides utility-scale PV power plants.

Business taxes

With the local taxes and state taxes combined, the residents of Arizona pay fewer taxes ranking at number 34. On top of the tax chain in New York, New Jersey. Arizona, its state, and local businesses pay 8.9 percent combined, just below the U.S average of 9.8 percent.

Even though Arizona does have an income tax, it’s so modest that it is the second-lowest rate in comparison to other states. The only way to incur Arizona’s top tax bracket is if the business earns considerable money.

Its local and property tax also makes it affordable for companies to manage since it’s in the medium range. Arizona’s property tax ranks at No. 31 among the states. Companies opt to reside in Arizona because of the business tax difference.

The difference can save tech companies almost 60 percent compared to Silicon Valley or 50 percent compared to San Francisco in terms of new talent employment. Other states may not favor the business community the way Arizona looks into its own.

This sounds ideal for most businesses with no inventory or low corporate tax. The state offers incentives like Arizona Enterprise Zone Program or the Arizona Job Training Program, which encourage start-ups.

The growing population comprised 22 percent of young millennials, and 30 percent of its inhabitants holding a degree or higher breed thriving businesses in the Grand Canyon state. More companies are seeing the potential Arizona gifts its residents and slowly oozing into being part of the movement.

Right to work state

Unlike other states, Arizona has right-to-work under state laws. The right means that when other employees form a union, one can opt-in or out without consequences. An employer can’t force an employee to join. Even when they join, they still have the right to opt-out without losing their jobs.

Companies prefer to work in Arizona, leading to a surge in the local economic boost. The right to work also allows companies to work with no mandatory union fees to keep their job. This can generate higher wages for the states, and companies offer more pay to reduce the incentive for unions.

Although when the law is abused, it leads to weakened workplace protections. Also, it can be used by politicians or big businesses to broaden the gap between the working class and the corporations that stand to gain massive profit margins in states that apply the right-to-work law.

Affordable Housing

Low housing means that the households can afford an income of 30 percent of the area’s median income. In Arizona, the median household income is $61,529. Per capita, the income is $32,340. In July 2020, Arizona launched the Housing Phoenix Plan in Phoenix.

In Tempe, they have prioritized affordable housing development by approving the Home Town for All initiative. With such incentives, Arizona is getting more companies interested.

For example, in Los Angeles, the median income is $67,418, and its median home price is $795,000, whereas Phoenix is a $383,924 median home price and $64,436 median wage.

The median household income in the West Valley suburb of Buckeye is $71,707 with a median home price of $357,400. This makes homes for sale in Buckeye extremely affordable, unlike Austin, TX, which has a $639,000 median home price with a $64,034 median household income.

With affordable housing, companies spend less on turnover costs since the employees can afford to reside close to their place of business. Businesses also can attract and retain different employees who come from diverse backgrounds since more jobs are accessible to the majority of residents.

Affordable housing acts as the incentive employees need to improve productivity and affects the overall standard of living. A tech position in Arizona averages $91,794, unlike in other states. The average cost of rent for offices in other states average at $100 compared to Phoenix, Arizona, which has an average of $24.22 per square foot.

Tax Incentives

Arizona has no corporate franchise tax, inventory tax, sales tax, or worldwide unitary tax. Arizona Commerce Authority has made 200 million dollars in incentives available for companies, including grants, property tax reductions, and refundable tax credits.

Incentives such as the Quality Jobs Tax Credit that, credits up to $9,000 are offered to any company that provides jobs and meets a specific wage requirement. Quality Facility Tax creditors the state can provide the refundable tax credit to businesses that make a minimum of $ 250,000.

Machines used for direct manufacturing are exempted from sales tax, and any capital investment made in data exceeding $25 million is eligible to enjoy the Transaction Privilege Tax. They also get to use the tax exemption for up to 20 years.

Arizona offers grant and financial programs like Arizona competes Fund, which provides company deal-closing funds that award companies that create jobs that offer wages above the median county wage.

Companies find the incentives from Arizona affordable for their institutions since the state offers Arizona Job Training Grant that supports businesses in training qualifying employees. This relieves a lot of burdens, unlike in other states.

In Arizona, we are committed to making our state a great place to do business. Arizona can be an excellent option for tech companies looking to find better employees with almost a half-price salary rate, unlike Silicon Valley or any other tech location.

Some of Arizona’s best features include its community college system and top institutions such as Arizona State University, which provide excellent staff after they complete their education. The university issues 22,000 degrees annually.

The ever flow of students and emerging innovators make Arizona the hub of excellence for companies. All these reasons give companies a cutting-edge advantage to increase the company income and increase company exposure online with expert workers around the state.


Whether a company is looking for affordable offices, employees, great incentives, and a thriving working environment, Arizona offers it all at once. The trend is only the beginning of so many more turning points for the business and larger companies to realize why they need to move to the Grand Canyon State.