Taxes in Gilbert & Arizona

Gilbert and Arizona offer a competitive operating environment and for the past 10 years, Arizona has implemented reductions in taxes and has created incentives program favorable to business. Companies have enjoyed consistent decreases in average employer and individual tax rates over the last decade. Not only that, but the region also boasts a minimalist regulatory approach. Outside of the competitive business tax incentives, here’s a snapshot of some of the benefits your business could enjoy here.

Business Taxes

Gilbert Transaction Privilege (Sales) Tax 1.5%
Corporate Income Tax 4.9%
Unemployment 0.8%
Taxable Wage Base $7,000
Workers’ Comp Inventory $1.49/$100 Payroll
Personal Income Tax Rate 2.59% – 4.54%

*State unless noted.
Source: Tax Foundation, 2019

Property Taxes

The assessed value for commercial property is 18.0% of the limited property value as determined by the Maricopa County Assessor. To calculate the taxes, the assessed value is then multiplied by the tax rate for the parcel.

Arizona Taxes

Arizona has lowered taxes, streamlined regulations, and established a suite of incentives to support corporate growth and expansion. The Arizona Competitiveness Package, groundbreaking legislation adopted in 2011, makes it easier for existing Arizona companies to prosper and establishes Arizona as one of the most desirable places for expanding companies to do business. Give your company a competitive edge by utilizing Arizona’s incentives, programs, and grants. Check out the Arizona Commerce Authority for a full list of Arizona incentives and programs.

Taxes that the state does not levy:

  • No corporate franchise tax
  • No business inventory tax
  • No income tax on dividends from out-of-state subsidiaries
  • No worldwide unitary tax

Additional Arizona Information:

  • Virtually all services in retail exempt from sales tax 
  • Aggressive accelerated depreciation schedules, ideal for capital intensive business
  • Arizona has the 6th lowest unemployment insurance tax rate in the nation and the lowest amount in the U.S. for total wage base subject to unemployment tax ($7,000).
  • 80% sales factor for Corporate Income Tax, ramping up to a 100% option
  • Low total payroll costs, including some of the lowest Fringe and Mandated Benefits in the county
  • No sales tax on manufacturing equipment
  • 100% of net operating loss may be carried forward for five years
  • Low unionization
  • Low Workers’ Comp and unemployment insurance
  • Right-to-work state