Taxes in Gilbert
Gilbert, Arizona is dedicated to creating a pro-business environment for companies looking to expand to or relocate. With a competitive operating environment, simplified tax systems, and some of the lowest corporate and individual income tax rates across the country, Gilbert is your next business destination.
Arizona Tax Quick Facts
Arizona provides a competitive operating environment for businesses interested in expanding or relocating. By implementing tax reductions and support programs favorable to companies, Arizona continuously attracts collaborative and innovative businesses. Companies are benefiting from consistent decreases in average employer and individual tax rates. These initiatives have made Arizona a leader in finding more ways to be pro-business with a minimalist regulatory approach.
Arizona’s favorable tax environment is one of the pro-business reasons companies are choosing to invest in the state, and especially in Gilbert.
- 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).
- The assessment ratio for real and personal property taxes on commercial and industrial properties is 18.0%.
- Enhanced accelerated depreciation program for real and personal property of businesses.
- 100% of net operating losses may be carried forward for five years.
- Virtually all services are exempt from sales tax.
- Exempts equipment used in manufacturing from sales tax.
- 4.9% Corporate Income Tax.
Property Tax Example
Commercial property within the Gilbert Public School District with a limited property value (LPV) of $1,000,000 would pay $19,512 annually in property tax: $1,000,0000 x.18 (assessment ratio) = $180,000 x $10.84/100 = $19,512.
Tax-Friendly Business Environment
- No corporate franchise tax
- No business inventory tax
- No income tax on dividends from out-of-state subsidiaries
- No worldwide unitary tax
- No estate tax
Arizona Business Taxes
|Sales Tax*||Corporate Income Tax||Unemployment (Percentage of Payroll)||Inventory|
|*Arizona refers to sales tax as Transaction Privilege Tax (TPT). 2019 sales tax/TPT breakdown: Gilbert: 1.5%, Maricopa County: 0.7%, State of Arizona: 5.6%|
*Unemployment (percentage of payroll) ranges from 0.8% to 5.1%
Arizona Property Taxes
Rates are per $100 of assessed value. The assessed value for commercial property is 18% of the limited property value as determined by the Maricopa County Assessor, and the assessed value for residential property is 10% of the limited property value.
|Gilbert Public School District||$10.84/$100 of assessed value|
|Chandler Unified School District||$11.60/$100 of assessed value|
|Higley Unified School District||$12.11/$100 of assessed value|
(Note: The above rates are reflective of typical rates in the three school districts that serve Gilbert. Actual rates may vary slightly between properties within a specific school district depending on “special” assessment districts that may be in existence. To verify the property tax rate for a specific piece of property, please contact us.)
Arizona Personal Income Tax
Arizona personal income tax rates range from 2.88 – 5%, compared to other Southwest markets, which vary from 4.6 – 9.3%.
Contact our team with any questions related to Arizona and Gilbert taxes.
If your company is already a Gilbert based business, or you’re looking to start a business, or expand/relocate your existing business to the community, our team is a resource for you. Let’s connect so we may answer any questions related to your business such as taxes, business assistance programs, expanding into Gilbert, or searching for a property – we’re here to help!