Startup Costs in Arizona

Data current as of May 2026

Arizona has become a magnet for business relocation with its low flat income tax rate of 2.5%, no LLC annual report requirement, and a $50 LLC filing fee. Phoenix is one of the fastest-growing metro areas in the US, bringing a steady stream of new customers. Summer heat limits foot traffic for some businesses from June through September.

Arizona (AZ) by the Numbers

LLC Filing Fee
$50
Annual Report
$0
State Income Tax
2.50%
Sales Tax
5.60%
Min Wage
$15.15/hr
Cost of Living
1.03x
Labor Cost
0.97x
Rent Index
0.95x

What Arizona's Numbers Mean for Founders

  • State income tax caps at 2.50%.
  • Minimum wage is $15.15/hour - on the high end nationally, which lifts your entry-level labor costs.
  • LLC filing costs just $50, among the cheapest in the country.
Capital: Phoenix
Major metros: Phoenix, Tucson, Mesa, Scottsdale
Top industries: Technology, Real Estate, Healthcare, Tourism

Arizona Cost Guides (10)