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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 Sales Tax Rates
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.
Sales Tax Amnesty
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
State Tax Web Page

Arizona Department of Revenue
Rate Look-Up Page

Arizona Sales Tax Rate Look-Up
Registration Link

Register for Arizona Sales Tax
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.

Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced

On December 16, 2014, President Barack Obama signed an act including a provision that extends the Internet Tax Freedom Act until October 1, 2015.

Arizona Postpones Effective Date of TPT Simplification to January 1, 2016

Beginning January 1, 2016, the Arizona Department of Revenue becomes the single point of administration and collection of state, county and municipal transactions privilege tax (TPT).

Three More Arizona Cities to Become Program Cities in 2015

Effective January 1, 2015, three more Arizona cities became program cities, which means that the Arizona Department of Revenue will license and collect the cities’ transaction privilege taxes.

Arizona Issues New Exemption Certificate

Arizona has created a new deduction from the gross receipts from sales of electricity and natural gas to a business that is principally engaged in a manufacturing or smelting operation.

Internet Tax Freedom Act is Extended through December 11, 2014

President Barack Obama has signed federal legislation extending the Internet Tax Freedom Act through December 11, 2014.

Oil and Grease Not Considered Exempt Machinery or Equipment Parts in Arizona

Oil and grease did not qualify as components of machinery and equipment used directly in mining and metallurgical operations in Arizona.

New Federal Digital Goods and Services Bill Proposed

Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services. Smith had proposed an earlier bill which failed to pass. This bill is a revised version of the earlier bill. The proposed…

Arizona’s Temporary State Tax Rate Expires

Arizona’s temporary increase in sales tax rates expires on May 31, 2013. The state’s current rate of 6.6% will decrease to 5.6% beginning June 1, 2013. The state’s current rate for transient lodging will decrease from 6.5% to 5.5%. The…

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013.

Arizona Authorizes Tax Amnesty Program

Arizona has enacted legislation authorizing the Department of Revenue to establish a tax amnesty program applying to all state and local taxes administered by the Arizona Department of Revenue except estate and property tax. This amnesty does not cover home…

Arizona Voters Approve 1% Rate Increase

Arizona voters passed Proposition 100 which temporarily increases the transaction privilege tax rate from 5.5% to 6.5%. This rate change is effective June 1, 2010 through May 31, 2013 (Proposition 100, approved by the voters at the May 18, 2010,…

Arizona Tax Amnesty Program Authorized

The Arizona Department of Revenue has been authorized to extend a tax amnesty program beginning May 1, 2009 and ending June 1, 2009 for Individual and Corporate Income, Transaction Privilege, Use, Withholding, Partnership, Fiduciary, and Luxury taxes. Eligible taxpayers who…

Directory Assistance Company Did Not Qualify for Telco Exemptions in Arizona

A directory assistance company, who provided telephone customers with the phone numbers for requested listings on behalf of telecommunications companies, was denied a refund on its purchases of equipment.

End of Lease Options Material in Determining Transactions Privilege Tax Classification

In a recent Private Taxpayer Ruling, the Arizona Department of Revenue classified two nearly identical leases differentially because of differing end of lease options.

Drive-Through Window Taxable in Arizona

The Arizona Tax Court found a doughnut store owner to be liable for sales tax on drive-through sales of doughnuts and other consumable items. While the Court accepted that the drive-though sales were recorded separately from inside sales, it made…

Arizona Discusses Exemptions of Architectural and Engineering Services

Under the prime contracting classification for direct costs of architectural and engineering services, a privilege tax exemption applies to direct labor costs, direct material costs and third party subcontracted costs. To qualify for the exemption, the service must be performed…

Confidential Material May Be Disclosed in Arizona

The Federation of Tax Administrators and the Multistate Tax Commission may receive confidential taxpayer information attained by the Arizona Department of Revenue as part of an information exchange for tax administration reasons.

Printing for Motion Picture Production Exempt in Arizona

Under the Arizona job printing classification, sales of printing, engraving, embossing, or copying to a qualified motion picture production company for use in motion picture production are exempt. To be eligible for this deduction, at the time of sale, the…

Separately-Stated Photography Services Taxable In Arizona

The Director’s review upheld an earlier decision that separately-stated photographer’s fees were subject to the state’s transaction privilege tax. Specifically, the photographer did not qualify for a “service in addition to a retail sale” exemption as the services provided by…

Postage and Freight Exempt For Arizona Printers

Under Arizona’s job printing classification, postage and freight are exempt from transaction privilege tax. The taxpayer must separately document the postage and freight on the purchaser’s invoice and in the taxpayer’s records to qualify for the exemption. In addition, sales…

Arizona Amends Computer Hardware and Software Regulation.

The Department of Revenue has amended a regulation to clarify the taxability of sales of computer hardware or software. The modification clarifies that (1) gross receipts derived from changes of prewritten software for the specific use of an individual customer…

Arizona Examines Out-of-State Printing.

A recent opinion of the Arizona Court of Appeals affirmed the Tax Court’s decision that out-of-state printing services are not subject to use tax. A taxpayer in the business of publishing telephone directories contracted with out-of-state printers for printing services…

Arizona Taxes Web-Based Training Courses.

A taxpayer who provided web-based training to its customers via the internet was subject to transaction privilege tax on its gross income derived from the lease of such software. The taxpayer offered its customers the ability to install, deploy, and…

Arizona Finds Telephone Directory Equipment Taxable.

In a ruling issued by the Arizona State Board of Tax Appeals it was found that equipment leased to a telephone directory assistance provider was subject to transaction privilege and use tax. The Board ruled that the definition of exempt…