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.

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.

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 Enacts Economic and Marketplace Nexus Legislation

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

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.

South Dakota v. Wayfair Analysis & Predictions: Sales Tax Experts Weigh-In

Sales tax experts lend their insight into and predictions for one of the most important U.S. Supreme Court decisions regarding sales tax in decades, South Dakota v. Wayfair.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.

Arizona Issues Ruling on Marketplace Nexus

The Arizona Department of Revenue issued a ruling stating that a business that operates an online marketplace and makes online sales on behalf of third-party merchants is a retailer conducting taxable sales.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.

House Introduces Remote Transactions Parity Act of 2015

U.S. House of Representatives introduced the Remote Transactions Parity Act of 2015 on 06/15/15. More…

Senate Introduces Marketplace Fairness Act of 2015

On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015.

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.

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…