Credit card processing and merchant services in Gilbert, AZ
Gilbert raised its transaction privilege tax from 1.5% to 2.0% on January 1, 2025. Retail sales now carry 8.3% in total, and hotel stays and short-term rentals carry 14.27%.
Gilbert is still a town on paper, but the Census Bureau's July 2025 estimate of 287,285 residents put it ahead of neighboring Chandler at 278,748. The town has grown 7.2% since its 2020 base of 267,875.
Its taxes went up on January 1, 2025, after the Town Council approved new rates on October 22, 2024. The town's transaction privilege tax went from 1.5% to 2.0%, and with 6.3% for the state and county, retail sales now total 8.3%. A $250 sale carries $20.75. A terminal still set to the old total of 7.8% charges $19.50, and since you owe tax at the new rate either way, the $1.25 difference comes out of your margin. When you file, Gilbert activity goes under region code GB.
Lodging changed more. Hotels and other short-term stays, vacation rentals included, pay the 2.0% town rate plus an additional town tax that rose from 2.8% to 5.0%. The town puts the combined rate, with the state and county shares, at 14.27%, up from 11.57%. If you rent out a home by the night, the FTC's fee rule has also required total-price disclosure for short-term lodging since May 12, 2025, so a mandatory cleaning fee belongs in the total price you advertise.
The town also started charging a use tax. It was 0% before 2025 and is now 2.0%, which is worth asking about when you buy equipment from a seller that doesn't charge Gilbert tax.
We found no Arizona surcharge statute, so Visa's and Mastercard's caps are the limit on card fees; our Arizona page has the details. A free statement review shows what you pay now, and our online payments page covers taking deposits and bookings online.
Rules that matter in Gilbert
The January 2025 tax increase
The Gilbert Town Council approved new tax rates at its October 22, 2024 meeting, effective January 1, 2025. The town's transaction privilege tax rose from 1.5% to 2.0%, so retail sales carry 8.3% in total with the state and county's 6.3%. The town's use tax went from 0% to 2.0%.
For hotels and other transient lodging, including vacation rentals, the additional town tax rose from 2.8% to 5.0% on top of the 2.0% base rate, and the town lists the combined rate at 14.27%. Gilbert activity is reported under region code GB.
Sources: Town of Gilbert, 2025 tax rates; Town of Gilbert, Taxable business activities and rates; Town of Gilbert, Gilbert Town Council approves tax rate increases to fund critical infrastructure projects
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Common questions
What is the sales tax rate in Gilbert, Arizona?
8.3% on retail sales: Gilbert's 2.0% plus 6.3% for the state and county, according to the town. The town rate has been 2.0% since January 1, 2025. Other classifications, such as lodging, carry different rates, so confirm the one for your activity with the town or the Arizona Department of Revenue.
How much tax does a Gilbert vacation rental collect?
The town lists the combined rate for hotels and other transient lodging, vacation rentals included, at 14.27%. That's Gilbert's 2.0% base rate, an additional 5.0% town tax (2.8% before 2025), and the state and county shares. Before 2025, the combined rate was 11.57%.
Do I need to update my POS for Gilbert's 2025 rate?
Yes, if it was set up before January 2025. Change the town's rate to 2.0% everywhere it's stored: countertop terminals, mobile readers, your online checkout and invoice templates. Then run a test sale. On a retail sale, the receipt should show 8.3% in total.
Does the FTC fee rule apply to short-term rentals in Gilbert?
Yes. The FTC's Rule on Unfair or Deceptive Fees covers short-term lodging and live-event tickets and has applied since May 12, 2025. Covered businesses must show the total price, including mandatory fees, so a required cleaning or service fee belongs in the total price you show.
Did Gilbert's use tax change in 2025?
Yes. It went from 0% to 2.0% on January 1, 2025, at the same time as the sales tax increase. If you buy equipment or supplies from a seller that doesn't charge Gilbert tax, ask the town how the use tax applies before your next return.
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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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