Taxes

Mesa’s Pro-Business Tax Advantages

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 is the second most competitive state in the nation for unemployment insurance tax premium contributions and has one of the lowest taxable wage bases in the nation for unemployment insurance ($8,000).^[i]
• The assessment ratio for commercial and industrial property is 15.5% in 2026. The commercial ratio phases down to 15.0% in 2027.^[ii]
• Arizona’s Additional Depreciation schedule values qualifying business personal property placed in service in or after 2022 at 2.5% annually and indefinitely, regardless of equipment type or use. This results in low, uniform, and predictable taxable values.^[iii]
• Arizona provides sales tax exemptions for qualifying machinery and equipment used in manufacturing or research and development.^[iv]
• Most services are not subject to Arizona’s Transaction Privilege (sales) Tax.^[v]
• Arizona net operating losses arising in taxable periods beginning on or after January 1, 2012, may be carried forward for 20 succeeding taxable years.^[vi]

Business Taxes

_{*2026 sales tax breakdown: Mesa – 2%; County – 0.7%: State – 5.6%}

Personal Income Tax

Property Tax

The assessment ratio for commercial property is 15.5% of the limited property value (LPV), as determined by Arizona statute and administered by the Maricopa County Assessor. The property tax is composed of two rates, primary and secondary. Primary tax rates typically fund government entities like municipalities and school districts, while secondary tax rates usually fund special districts and bond issuances. The rates in the following table are per $100 of assessed value. The rate is then multiplied by the assessed value to determine the tax liability. For example, a commercial property within Mesa Public School District with an LPV of $100,000 would pay $1,529.22 annually in property tax. $100,000 LPV x 0.155 (assessment ratio) = $15,500 x $9.8659/$100 = $1,529.22. A commercial property within the same district with an LPV of $500,000 would pay $7,646.09 annually in property tax.

_{Rates portrayed include county-wide districts, i.e., County, Comm. College, City, School, Edu. Equal, Spec. HC, EVIT or WESTMEC, where applicable. *Rates do not include some special districts, which may vary across the City.
Source: Maricopa County Assessor’s Office 2026.}