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Real Property Rentals

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SalesTax@GilbertAZ.gov

All Real Property Rentals in Gilbert are Taxable

(Homes, Buildings, Land, etc.)

The Arizona Department of Revenue (AZDOR) administers the transaction privilege tax (TPT) for the Town of Gilbert; this means that you as a property owner will report and pay your Gilbert activity to AZDOR. Taxes can either be included in your overall price, or charged to your renter as a separate line item. If you use a property management company (PMC) you still need your own TPT (Sales) Tax license with AZDOR.

If you have questions about property tax in Gilbert, please contact the Maricopa County Assessor's Office at (602) 506-3406.

All residential properties being used as a rental in the Town of Gilbert need to be registered with Maricopa County as a rental.

I Rent Out...

Residential Long-Term 
(30+ days)		 Residential Short-Term 
(less than 30 days)		 Commercial property 
(Buildings and/or Land)
  • We call this business activity Residential Rental

  • This business activity is taxable only to the Town of Gilbert

  • You need to have your own TPT license

  • A business license is not required

  • The tax rate is 1.5%
     
  • Some PMC’s may report and/or pay on your behalf. Please check with your PMC to verify if they offer this service
     
  • All properties need to be registered as rentals with the county
     
  • Click here to see a list of what is taxable and deductible
  • We call this business activity Hotel/Motel and Transient lodging
     
  • This business activity is taxable to the Town and County/State
     
  • You need to have your own TPT license
     
  • A business license is not required. However Gilbert has a Voluntary registration for emergency purposes
     
  • The combined tax rate is 11.57% (GB=1.5% and 2.8%, MAR=7.27%)
     
  • Some online listing platforms may report and/or pay on your behalf. Please check with them to verify if they offer this service
     
  • All properties need to be registered as rentals with the county
  • We call this business activity Commercial Lease

  • This business activity is taxable to the Town of Gilbert and County

  • You need to have your own TPT license
     
  • You need a business license for the Town of Gilbert – click here
     
  • The combined rate is 2.0% (GB=1.5%, MAR=0.5%)
     
  • Some PMC’s may report and/or pay on your behalf. Please check with your PMC to verify if they offer this service
     
  • There is no extra county registration for a commercial property
     
  • Click here to see a list of what is taxable and deductible

Four Things to Remember

  1. Get help with reporting your past due taxes here. If you need assistance completing and submitting the form, please email SalesTax@GilbertAZ.gov.  
  2. Get a transaction privilege tax License with the Arizona Department of Revenue. You can apply two ways, online at AZTaxes.gov or download the application  
    (Foreign ID's must apply via paper).
  3. Register your residential property with Maricopa County here (not commercial properties).
  4. File your returns and pay the transaction privilege tax when it is due on AZTaxes.gov

Factoring Tax

If you elect to include the tax in the rent (no separate charge for tax), you may calculate the amount of tax included in your gross income as indicated below:

Residential Long-Term
(30+ days) 		 Residential Short-Term
(less than 30 days)

Commercial property
(Buildings and/or Land) 
Rate: Gilbert ONLY 1.5% Rate: MAR 7.27% + Gilbert 1.5% + Gilbert additional 2.8%
 Rate: MAR 0.5% + Gilbert 1.5%

TOTAL 1.5%

 TOTAL 11.57%

TOTAL 2%
Gross rent ÷ 1.015 = taxable rent

 

Example:

Gross monthly rent:       $1,000.00

Factor 1.5% tax              ÷     1.015

Net taxable rent                $ 985.22

 

Monthly tax paid (to Gilbert only) will be $14.78 which if added to the net taxable rent will total the amount collected from tenant = $1,000.00.

 

If you add the tax to the rent and charge the tenant, the gross rent would be $1,015.00. ($1,000.00 x 1.5% = $15.00 tax). The $15.00 would be a *deduction and the net taxable would be $1,000.00.
Gross rent ÷ 1.1157 = taxable rent

 

Example:

Gross monthly rent:       $1,000.00

Factor 11.57% tax          ÷  1.1157

Net taxable rent                $896.30

 

Monthly tax paid will be $103.70 which if added to the net taxable rent will total the amount collected from tenant = $1,000.00.

 

If you add the tax to the rent and charge the tenant, the gross rent would be $1,115.70. ($1,000.00 x 11.57% = $115.70 tax). The $115.70 would be a * deduction and the net taxable would be $1,000.00.		 Gross rent ÷ 1.020 = taxable rent                        

Example:

Gross monthly rent:                         $1,000.00

Factor 2% tax                 ÷       1.02

Net taxable rent               $980.39

 

Monthly tax paid will be $19.61 which if added to the net taxable rent will total the amount collected from tenant = $1,000.00.

If you add the tax to the rent and charge the tenant, the gross rent would be $1,020.00. ($1,000.00 x 2% = $20.00 tax). The $20.00 would be a *deduction and the net taxable would be $1,000.00.

 * The deduction code used on the tax return for tax collected or factored is 551