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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.

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…

Arizona Provides Exemption for Service Fees in Construction Contracts.

The Arizona Legislature has passed a bill exempting engineering and architectural services that are incorporated into a design-build construction contract. These services, charged for separately have always been exempt; however, they were taxable when included in a single contract. Now…

Arizona provides incentives to aid forest health.

Two new Arizona transaction privilege (sales) and use tax incentives have been enacted and are available from July 1, 2004 until June 30, 2014 that aim to assist businesses primarily engaged in the maintenance and health of forest zones. The…

Arizona exempts materials integral to the manufacturing process.

The Arizona Supreme Court held that the silica sand, chemical binders, exothermic sleeves, mold cores, mold wash, and hot topping were exempt from use tax because they “were used directly in and were an integral part of a qualifying process.”…

Arizona exempts lessors of motor vehicles from the transaction privilege tax on their income if they are subject to the motor carrier fee.

In order to qualify for the exemption, the motor carrier fee must be paid by the lessor, lessee, or authorized third party on the specific vehicle(s) being leased. This exemption only applies to vehicles that weight over 12,000 pounds and…

Arizona Construction Manager Not Responsible for Tax.

In Arizona, subcontractors contracted to do work separately from the “prime contractor” are responsible for the Arizona transaction privilege tax obligation on their part of the job. In the case of Ormond Builders, Inc. v. Arizona Department of Revenue, a…

Arizona contractor denied land-value deduction.

In a recent decision by the Arizona Court of Appeals, a prime contractor was denied its challenge of an auditor’s reduction of the original assessed land-value deduction towards the contractor’s sales and use tax liability. The contractor’s business is the…

Pizza equipment not included in Arizona exemption.

Pizza-making equipment did not qualify for the Arizona transaction privilege and use tax manufacturing exemption. To qualify for the exemption, the equipment must be used directly in a manufacturing or processing operation. Although the manufacturing of the pizza may have…

Arizona taxes fees for customer incentive program.

The receipts received for services offered by a retail bookseller’s through a preferred reader program were subject to transaction privilege (sales) tax. The services aimed at encouraging customers to purchase the bookseller’s merchandise were considered a part of the sale…

Out-of-State vendor subject to Arizona Transaction Privilege (Sales) and Use Tax.

A corporation engaged in selling and licensing computer hardware and software to nursing homes throughout the US was found to have established sufficient nexus for transaction privilege (sales) tax, even though the corporation did not maintain a place of business…