Tax Information

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Arizona relies on a combination of taxes assessed on income, sales and property valuations to meet expenditures. For nine consecutive years, Arizona has reduced taxes and passed legislation favorable to business.

Some notable aspects of the tax code are:

  • No Corporate Franchise Tax.
  • No Business Inventory Tax.
  • No Income Tax on dividends from out-of-state subsidiaries.
  • No Worldwide Unitary Tax.
  • Aggressive Accelerated Depreciation Schedules.
  • Virtually All Services Exempt from Sales Tax.
  • 100% of NOL may be carried forward for five subsequent years.

Corporate Income Tax Rate: 6.968%
Transaction Privilege and Use Tax: 5.6%-9.0% (state median is 8.3%)
Real and Personal Property Tax: Range: $9.74-$12.74 per $1000 assessed value
Personal Income Tax: 2.88%-5.1%

 

*Personal Income Taxes have been reduced for each of the past five years

Example:

$1,000,000 Market Value
$800,000 Full Cash Value (80% of Market Value)
X 25 Class 1 Assessment Ratio
$200,000 Assessed Value
X .1270 Tax Rate Factor of $12.70/$100
$25,400 Tax Liability*

*Does not reflect impact of accelerated depreciation and reclassification to Class 6