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Transaction Privilege Tax (Sales Tax) 

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*** Notice: Residential Rental Tax Exemption Removed. All Residential rentals are taxable beginning October 1, 2010 ***

For tax related questions, please contact Linda Kramar at (480) 503-6852.

Taxable Categories and Rates

Transaction Privilege Tax (Sales Tax)

Tax rate all categories except hotels	Current Rate (as of June 1, 2010)
State Rate (MAR)	7.3%
Gilbert Rate (GB000)	1.5%
Total	8.8%
Tax rate for hotels only
State Rate (MAR)	8.27%
Gilbert Rate (GB000)	1.5%
Gilbert Rate (GB003)	3.0%
Total	12.77%
Use Tax rate
State Rate (MAR029)	6.6%
Gilbert Rate	0.0%
Total	6.6%

The transaction privilege tax (TPT) is commonly referred to as sales tax.  It differs from a true sales tax in that it is a tax on the privilege of doing business in Arizona.  The seller is liable for the tax but may pass the burden of the tax on to the purchaser. For additional information, please refer to the Arizona Revised Statutes, the Arizona Department of Revenue, or the Model City Tax Code.