Tax Rates

Paid by Taxable Businesses

The City of Goodyear, imposes a Transaction Privilege (Sales) Tax on specific business activities. The City tax is in addition to the tax imposed by the State and County. The City of Goodyear tax rate is 2.5% and is imposed upon the business. Food for home consumption (groceries) is taxed at 2.0%. For a large ticket item that exceeds $5,000, the 1.2% privilege tax rate shall apply to the entire single item. A taxable business will need to be registered with the City of Goodyear as well as licensed by the State of Arizona.

Contracting Taxes

Construction contractors, speculative builders, and owner builders, except for remediation contracting, are subject to the contracting tax. The sales tax rate on construction contracting is 3.5% of gross income.

Real Estate Taxes

Businesses that lease, license for use, or rent real property located within the City of Goodyear. Income from the rental of both Commercial and Residential properties is taxable.

The sales tax rate on real property rentals is 2.5% of gross income. In addition to a local sales tax, the City of Goodyear imposes a 2.5% Transient Lodging Tax (leasing to persons staying less than thirty consecutive days).

Restaurant/Hotel Taxes

Revenue from restaurants and bars are subject to a City Sales Tax rate of 4%. The sales tax rate on real property rentals is 2.5% of gross income.

In addition to a local sales tax, the City of Goodyear imposes a 2.5% Transient Lodging Tax (leasing to persons staying less than thirty consecutive days).

Retail Sales

Most retail sales within the City of Goodyear are subject to an 8.8% sales tax rate. This includes a 6.3% for state and county taxing and a 2.5% tax for the City of Goodyear. Food for home consumption (groceries) is taxed at a rate of 2.0% for the city.

If you are purchasing one retail item valued at $5,000.00 or more, the sales tax rate for the City of Goodyear drops to 1.2% for the entire single purchase.

• When dining out in Goodyear, the sales tax rate increases to 10.3%.

Procedures for Tax Payment

To apply for apply for a Privilege Tax License please click on the link below.

https://azdor.gov/transaction-privilege-tax/tpt-license/applying-tpt-license

Last Updated: 9/16/2020