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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.

Important Arizona Tax Information

  • 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.

Business Taxes

Sales Tax*

Corporate
Income Tax

Unemployment
(% of payroll)

Taxable
Wage Base

Workers' Comp
(per $100 payroll)

Inventory

8.05%**

6.98%

0.8%

$7,000

$1.49

No

*2013 Sales tax breakdown: Mesa - 1.75%; County - 0.7%; State - 5.6%

**The State sales tax rate fell to 5.6% from 6.6% on June 1, 2013, making Mesa's overall sales tax rate 8.05%


Personal Income Tax Rate
Arizona personal income tax rates ranges from 2.88%-5%, compared to other Southwest markets, which range from 4.6% to 9.3%.

Property Tax Breakdown

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 School District                                        $8.41

Higley School District                                      $8.75

Queen Creek School District                            $9.71

Gilbert School District                                     $9.25

Tempe School District                                      $10.14

For example:

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.

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