Credit card processing and merchant services in Scottsdale, AZ
Scottsdale's city sales tax went down on July 1, 2025, from 1.75% to 1.70%. A terminal that still charges the old rate is collecting more tax than the city now levies.
Most of the tax updates on our city pages are increases. Scottsdale's went the other way. In November 2024, voters approved Proposition 490, a 0.15% tax for 30 years that started on July 1, 2025, the day an older 0.20% tax expired. The swap moved the city's transaction privilege tax rate from 1.75% to 1.70%, and the city's use tax rate is now 1.50%. The new tax pays for parks and recreation facilities, the McDowell Sonoran Preserve, and police and fire resources tied to both.
Over-collecting is still worth fixing. With the state's 5.6% and Maricopa County's 0.7%, our math puts the combined rate on a typical retail sale at 8.0%, down from 8.05%; confirm it in the Arizona Department of Revenue's rate table. A device still set to 8.05% adds 50 cents to every $1,000 of sales. Over $1.2 million a year, that's $600 your customers paid in tax the city no longer levies. Check terminals, online checkout and invoice templates, then ask the department how to handle anything collected at the old rate.
The use tax side matters when you buy equipment. If an out-of-state seller doesn't charge Arizona tax on something you'll use in Scottsdale, ask about use tax; the department's use tax page explains the state portion.
Scottsdale had 243,006 residents in the Census Bureau's July 2025 estimate. We found no Arizona surcharge statute, so the card networks set the limits: your cost at most, Visa's 3% and Mastercard's 4% ceilings, posted notice, and no surcharge on debit or prepaid cards. See our Arizona page for sources and the Mesa page for how Mesa's 2% city rate compares.
If you sell hotel stays or event tickets, the FTC's fee rule has required total-price disclosure since May 12, 2025. For card costs, a free statement review shows your effective rate, and our surcharging program handles disclosures if you add a fee.
Rules that matter in Scottsdale
The July 2025 rate decrease
Scottsdale voters approved Proposition 490 in the November 2024 general election. It authorized a 0.15% transaction privilege and use tax for 30 years, taking effect on July 1, 2025, immediately after the city's 0.20% tax expired. The city's transaction privilege (sales) tax rate went from 1.75% to 1.70% that day, and its use tax rate is 1.50%.
The new revenue is designated for citywide parks and recreational facilities, the McDowell Sonoran Preserve, and police and fire resources related to the parks and the preserve.
Sources: City of Scottsdale, Taxes; City of Scottsdale, Proposition 490 full text (PDF); City of Scottsdale, 2025 Scottsdale 0.15% sales tax rate questions and answers (PDF)
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Common questions
What is Scottsdale's sales tax rate now?
The city's transaction privilege tax rate is 1.70%, effective July 1, 2025. Add Arizona's 5.6% and Maricopa County's 0.7% and a typical retail sale comes to 8.0% by our arithmetic. Confirm the combined rate for your business classification in the Arizona Department of Revenue's rate table.
Why did Scottsdale sales tax go down in 2025?
Proposition 490, approved in November 2024, replaced an expiring 0.20% tax with a new 0.15% tax for 30 years, starting July 1, 2025. The net effect cut the city rate from 1.75% to 1.70%. The new tax funds parks and recreation, the McDowell Sonoran Preserve, and related police and fire resources.
What if my POS still charges the old Scottsdale rate?
Update it now and check every place a rate is stored: terminals, your online checkout, invoice templates and recurring billing. Then ask the Arizona Department of Revenue how to handle tax collected at the higher rate since July 1, 2025. The amount per sale is small, but it adds up over a year.
Does the FTC fee rule apply to Scottsdale hotels and resorts?
It applies to businesses selling short-term lodging or live-event tickets, and it has been in effect since May 12, 2025. Covered businesses have to show the total price, including mandatory fees, when they advertise a price. Restaurants and retail shops aren't covered by this rule.
Can a Scottsdale business add a credit card surcharge?
Yes. We found no Arizona law that bans or caps surcharges, so the networks' rules apply: no more than your cost, 3% at most for Visa and 4% for Mastercard, notice at the entrance and register, the amount on the receipt, and no surcharge on debit or prepaid cards.
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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