Arizona’s Tax System Draws Many New Residents

Oatman, Arizona (1) by Ken Lund is licensed under by-sa

About every 14 minutes, it happens.

Someone moves to Arizona.

That’s according to a new report in which Arizona ranked among the top states where people are moving to in 2025, according to a new report. It gives credit for Arizona’s popularity to its tax system.

The National Taxpayers Union Foundation recently released the report, which showed how often people migrated in and out of states.

The report found Arizona ranked seventh, with a person moving to the state every 14 minutes and 19 seconds.

And residents moving into Arizona this year will contribute an estimated $607 million in additional revenue, according to Andrew Wilford, the foundation’s interstate commerce initiative director.

“Arizona is doing a good job crafting a tax system that makes [it] more appealing than a lot of neighboring states,” Wilford told The Center Square.

Wilford noted the state’s 2.5% flat tax rate is a “big factor” for people moving to the area.

Of the new residents moving to Arizona, 86% are from California, Wilford estimated.

According to Wilford, people from Washington, Illinois, Nevada and Oregon are also moving to Arizona. The state ranks higher than neighboring states in the foundation’s list of popular states for new residents.

Utah and Nevada ranked within the top 25, with more people moving to those states than leaving.

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