Mesa, Arizona offers a competitive operating environment compared to other Southwest markets. For more than a decade, Arizona has implemented reductions in taxes and created incentive programs favorable to businesses.
ARIZONA TAX QUICK FACTS
- 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%.
- Arizona has one of the most aggressive additional depreciation schedules, resulting in reduced operating costs and a quicker path to profitability.
- Arizona also exempts equipment used in manufacturing from sales tax.
- Virtually all services are exempt from sales tax.
- 100% of net operating loss may be carried forward for five years.
Plus, the state DOES NOT levy the following taxes:
- Corporate franchise tax.
- Business inventory tax.
- Income tax on dividends from out-of-state subsidiaries.
- Worldwide unitary tax.
|Sales Tax*||Corporate Income Tax||Unemployment
(% of Payroll)
(per $100 payroll)
| *2016 sales tax breakdown: Mesa - 1.75%; County - 0.7%: State - 5.6%
PERSONAL INCOME TAXArizona personal income tax rates ranges from 2.88%-5%, compared to other Southwest markets, which range from 4.6% to 9.3%.
Rates are per $100 assessed valuation. The assessed valuation for commercial property development is 18% of the actual value determined by the Maricopa County Assessor and 10% for residential. The rate is then multiplied by the assessed value to determine the tax.
|Mesa Public School District||$8.41|
| Higley Unified School District
|Queen Creek Unified School District||$9.71|
|Gilbert Public School District||$9.25|
Commercial property within the Mesa Public School District with a full cash value (FVC) of $100,000 would pay $1,555 annually in property tax. $100,000 FCV x .185 (assessment ratio) = $18,500 x $8.41/$100 - $1,555.85.