Credit card processing and merchant services in Chandler, AZ
Chandler's city tax depends on what you sell: 1.5% on retail, 1.8% at restaurants and bars, 2.9% on lodging. The city levies it on the business, whatever your receipt shows.
In Chandler, the city's share of your transaction privilege tax depends on your business classification. The city's tax page lists 1.5% for retail sales, 1.8% for restaurants and bars, 2.75% for utilities and telecommunications, and 2.9% for transient lodging. Its use tax rate is 1.5%.
The tax is levied on you, not your customer. Chandler says it's imposed on the business doing the taxable activity and applies to gross receipts, less the exemptions and deductions the code allows. If a sale goes through with no tax line on the receipt, the city's share still comes out of what you took in. On $90,000 a month in restaurant sales, the city's 1.8% alone is $1,620.
For retail, add Arizona's 5.6% and Maricopa County's 0.7% and the combined rate comes to 7.8% by our arithmetic. Neighboring Gilbert has charged 8.3% on retail since raising its own rate on January 1, 2025, so a $400 sale carries $31.20 in tax in Chandler and $33.20 in Gilbert. If you sell in both, set each location up separately, and confirm the combined rates with the Arizona Department of Revenue first.
The Census Bureau estimated Chandler's population at 278,748 in July 2025, about 1% above its 2020 base of 276,091.
On card fees, Arizona has no surcharge statute that we found, so Visa's and Mastercard's rules set the limits. Our Arizona page lists them with sources, and our restaurant page explains how we price food service. A free statement review shows what you pay now and what interchange-plus pricing would cost on the same volume.
Rules that matter in Chandler
City rates by business classification
Chandler's tax page lists different city transaction privilege tax rates by activity: 1.5% for retail sales, 1.8% for restaurants and bars, 2.75% for utilities and telecommunications, and 2.9% for transient lodging. The city's use tax rate is 1.5%.
The tax is imposed on the business engaging in the taxable activity, not on the customer, and applies to the business's gross receipts less allowed exemptions and deductions.
Source: City of Chandler, Tax
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Common questions
What is Chandler's tax rate for a restaurant?
The city's share is 1.8% for restaurants and bars, compared with 1.5% for retail, according to Chandler's tax page. State and county transaction privilege tax come on top of that. Ask the Arizona Department of Revenue for the combined rate for your classification before you program your POS.
Who owes Chandler's transaction privilege tax, me or my customer?
The business. Chandler's tax page says the tax is imposed on the business engaging in the taxable activity, not on the customer, and it's figured on gross receipts less allowed exemptions and deductions. You owe it whether or not you added it to the customer's bill.
Why does a Gilbert receipt show more tax than a Chandler one?
Gilbert raised its town rate from 1.5% to 2.0% on January 1, 2025, which put its retail total at 8.3%. Chandler's city retail rate is 1.5%, so with the state's 5.6% and Maricopa County's 0.7%, a Chandler retail sale comes to 7.8% by our arithmetic. Confirm both with the Department of Revenue.
Can a Chandler business pass card fees on to customers?
Through a surcharge, yes, within the card network rules, since we found no Arizona law that bans or caps them. Visa limits it to your cost or 3% and Mastercard to your cost or 4%, debit and prepaid cards are excluded, and you need posted notice and the amount on the receipt. Our dual pricing and surcharging guide compares the options.
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Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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