Arizona Sales Tax

On this page you will find handy sales and use tax information about Arizona.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Arizona that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Rate

5.600%

Range of Local Rates

0 – 7.83% A cap on the local sales/use tax applies on sales of any item of tangible personal property. Some local jurisdictions do not impose a sales tax.

Local Rates Apply to Use Tax

Yes/No Some of the cities do apply use tax. The counties do not apply a use tax. Remote Sellers are required to collect TPT including local taxes if they exceed economic nexus provisions.

Status

Inactive

Amnesty Filing Dates

September 1, 2016 - October 31, 2016

Go to Arizona Amnesty Page
AMNESTY INCLUSION PERIODS

Any period ending before January 1, 2014 for annual filers, and before February 1, 2015 for all other filers.

TAX TYPES AND CONDITIONS

Individual income, corporate income, and transaction privilege (sales) taxes, but not non-program city transaction privilege taxes. More details.

AMNESTY BENEFITS

Interest and civil penalties waived or abated.

Status

Inactive

Amnesty Filing Dates

September 1, 2015 - October 31, 2015

Go to Arizona Amnesty Page
AMNESTY INCLUSION PERIODS

Any period ending before January 1, 2014 for annual filers, and before February 1, 2015 for all other filers.

TAX TYPES AND CONDITIONS

All taxes administered by the Arizona DOR (does not apply to Arizona’s luxury tax or withholding tax). More details.

AMNESTY BENEFITS

Civil taxpayer penalties and interest reduced or waived

Status

Inactive

Amnesty Filing Dates

September 1, 2011 - October 1, 2011

Go to Arizona Amnesty Page
AMNESTY INCLUSION PERIODS

See details under "Tax Types & Conditions"

TAX TYPES AND CONDITIONS

All state and local taxes administered by the Arizona Department of Revenue except estate and property tax. Does not apply to home rule taxes not administered by the state.

Amnesty Inclusion Periods:
For taxpayers who file annually, liability period is any taxable period beginning from and after December 31, 2003 and ending before January 1, 2010.  For taxpayers who have a 52-53 week tax year, any taxable period beginning from and after January 14, 2004 and ending before January 1, 2010.  For all other taxpayers, any taxable period beginning from and after December 31, 2004 and ending before January 1, 2010.

AMNESTY BENEFITS

All or part of the civil penalties waived, interest imposed at a reduced rate. Approval to participate in the amnesty program does not entitle any affected taxpayer to a refund or credit of any amount previously paid.

Administration Information
Streamlined Sales Tax Status

Advisory State

NUMBER OF TAXING AUTHORITIES

131 Sales Tax Jurisdictions

HOME RULE AUTHORITIES

Yes

Sales Tax Sourcing (Intrastate)

Origin

Sales Tax Return Due Date

The 20th of the month following the reporting period

Exemption Information
RESALE CERTIFICATE

Arizona Resale Certificate

TYPES OF EXEMPTIONS

Product types of exemptions: interstate commerce sales and shipping, food sold for home consumption, transportation industry, manufacturing, printing railroad, etc. See Form 5000

 

Entity types of Exemptions: non-resident merchandise purchases, sales made to Native Americans, prime contracting

 

Arizona Exemption Certificate Forms

State Links
History & Fun Facts
HISTORY

  • Arizona does not technically have a sales tax, it has a Transaction Privilege Tax (TPT). TPT is a tax on a vendor for the privilege of doing business in a state. Vendors must pay the tax whether they pass it on to the consumer or not.
  • Arizona enacted its Transaction Privilege Tax in 1935 and later added use tax in 1955.

FUN FACTS
  • Arizona allows home rule authorities. However, on January 1, 2017, the state now administers all the taxes but each home rule authority can still have its own legislation.
  • Arizona has a number of tribal nations which are all separately administered and have their own rules.

Arizona Provides Clarification on Timeliness of Electronic Tax Payments

Arizona has enacted legislation that clarifies the timeliness of electronic tax payments.

Arizona TPT License Renewals Due January 1, 2024

The Arizona Department of Revenue (DOR) has sent out a reminder that Transaction Privilege Tax (TPT) Licenses must be renewed by January 1, 2024.

Arizona Appeals Court Re-Affirms State Position on Remote Software Licensing

The Arizona Court of Appeals ruled in favor of the Department of Revenue, rejecting a refund request from an HR software company that challenged the taxation of their sales of software licenses.

Arizona Eliminates Annual Renewals for Certain Nonprofit Sales Tax Exemptions

Effective 91 days after the close of the current legislative session, Arizona no nonprofit organizations that qualify for exemptions to the state\’s Transaction Privilege Tax will no longer be required to annually re-certify their exempt status.

Arizona DOR Releases TPT Guidance for Short Term Rentals

Income from short term rentals- stays of less than 30 days- is subject to the Arizona Transaction Privilege Tax (TPT) under Arizona Revised Statutes section 42-5070 and the Model City Tax Code -444 and -447.

Tribal Owned Contractor Owes Arizona Transaction Privilege Tax

A three-judge panel for the Arizona Court of Appeals, Division One released a decision in the case Ute Mountain Ute Tribe v. Arizona Department of Revenue, upholding a state court decision that Weeminuche Construction Authority is responsible for remitting tax on contracting proceeds done on tribal lands.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Economic Nexus State by State Chart

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

Arizona Provides Update on Transaction Privilege Tax

The Arizona Department of Revenue recommends that Arizona businesses renew their Transaction Privilege Tax before January 1, 2022 to avoid penalties.

Arizona Requires Peer-to-Peer Car Sharing Platforms to Pay Transaction Privilege Tax

Arizona Senate Bill 1720, effective September 29, 2021, requires peer-to-peer car sharing platforms to pay transaction privilege tax on rentals conducted on their platforms.

Arizona Formally Codifies Exemptions for Indian Tribes

The State of Arizona passed a bill on July 10, 2021 that formalizes the sourcing rules and exemptions for transaction privilege tax for Indian tribes, tribally owned businesses, and affiliated Indians.

Arizona Retail Definition and Exemptions Standardized Across All Municipalities as of June 30, 2021

The provisions of House Bill 2757, signed by Arizona Governor Doug Ducey on May 31, 2019, that allowed municipalities to delay adopting sections of the state\’s standardized definition of taxable retail sales have expired.

Southwest Sales Tax Updates

What’s been happening in the Southwestern sales tax landscape lately? Let’s dig into some updates.

Arizona Adopts Rule Amending Treatment of Gratuities for TPT

Arizona has amended the treatment of gratuities for TPT purposes.

Arizona to Discontinue Mailing of Paper TPT Returns

Effective February 1, 2021, the Arizona DOR will discontinue mailing of paper Transaction Privilege Tax returns to taxpayers.

Arizona TPT Electronic Filing Threshold Lowers on January 1, 2021

Effective January 1, 2021, Arizona’s threshold for Transaction Privilege Tax (TPT) electronic filing and paying lowers to $500.

Arizona Approves Abatement of Penalties on TPT due to COVID-19

Arizona has issued notice that the impact of the COVID-19 pandemic constitutes a reasonable basis for business owners and operators\’ inability to timely file or pay TPT.

How the West Has Responded to Wayfair

A whirlwind of sales tax changes have swept across the Western region of the U.S. following the Wayfair decision.

Arizona TPT License Renewals Due January 1, 2020

All businesses that are licensed with the Arizona Department of Revenue are required to renew their Transaction Privilege Tax (TPT) license by January 1, 2020.

Arizona Enacts Economic and Marketplace Nexus Legislation

Arizona has enacted legislation with economic and marketplace nexus provisions, effective October 1, 2019.

Arizona Unveils TPT Filing and Payment Program

The Arizona Department of Revenue has rolled out its program for electronic filing and payment of the state’s Transaction Privilege Tax (TPT).

Arizona TPT License Renewals Due January 1, 2019

All businesses licensed with the Arizona Department of Revenue are required to renew their Transaction Privilege Tax license by January 1, 2019.

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

Arizona Unveils New Online Option for Taxpayer Appeals

Effective August 3, 2018, Arizona has a new online option for taxpayers seeking to appeal a determination by the Arizona Department of Revenue.