Kingman’s Arizona location offers a favorable tax environment for businesses and individuals. In 2022, the Tax Foundation ranked Arizona as the 15th-best state in the nation, with a 9.5% state and local tax burden, lower than any other state in the Southwest.
The City of Kingman provides up-to-date tax information on its website.
- Retail sales tax rate is 8.1%, including a State rate of 5.6% and a City rate of 2.5%.
- Restaurant and bar tax rate is 9.1%, of which the City receives 3.5% and dedicates 1% to street repairs and maintenance.
- Hotel tax rate is 12.0%, of which the City receives 6.5% and dedicates:
- 2% towards promoting tourism.
- 2% towards funding general capital projects.
- Residential and commercial leasing tax rates are 2%.
- The City does not impose a food tax.
- The City does not charge a property tax.
Kingman provides additional benefits to businesses and individuals by being located in Mohave County, which has no county sales tax. As a result, Kingman experiences the lowest sales tax in all of Arizona. Mohave County residents pay an average 0.54% property tax rate in 2022.
The marginal state individual income tax rate in Arizona in 2022 was 2.59% to 4.5%, some of the lowest rates in the Southwest. Other essential tax features of Arizona include:
- Arizona does not have corporate franchise tax, business inventory tax, income tax on dividends from out-of-state subsidiaries and worldwide unitary tax.
- Arizona has the 11th-lowest unemployment insurance tax rate in the nation.
- The assessment ratio for real and personal property taxes on commercial and industrial properties is 18.0%.
- Arizona has one of the most aggressive additional depreciation schedules, resulting in reduced operating costs and a quicker path to profitability.
- Arizona also exempts equipment used in manufacturing from sales tax.
- Virtually all services are exempt from sales tax.
- 100% of net operating loss may be carried forward for five years.