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Arizona Sales Tax

Use this page to answer any of your Arizona State specific questions

Sales Tax Basics

Sales Tax Rate

State: 5.6%

Highest Local Rate: 5.3%

Local Filing

  • Filed in relation to county and city

  • Filed with the state 

Economic Nexus

$100,000 in direct Arizona sales

Arizona Tax Agency

Arizona calls its sales tax Transaction Privilege Tax (TPT). State, county and participating city taxes are administered through the Arizona Department of Revenue. Arizona's rate tables are updated monthly.

  • Agency: Arizona Department of Revenue

  • Sales Tax Permit: Arizona TPT License 

  • Help Line: (602) 255-3381

Common Taxability

  • Services: generally not taxable

  • Clothing & Jewelry: taxable

  • Prepared Food & Beverages: taxable

  • Grocery/Packaged Food: state exempt, local taxes may apple

Registration

Do I need to Register?

If your business is in Arizona you generally need a TPT license to conduct taxable business activity. If your business is located outside Arizona you need to register once your direct Arizona sales exceed $100,000.

  • sales made through a marketplace facilitator (Depop, Etsy, etc.) generally do NOT apply to the $100,000 direct-sales threshold when the facilitator itself is responsible for collection tax

 

How Do I Register?

Register for an Arizona TPT license with the Arizona Department of Revenue

  • Where: AZTaxes.gov

  • State License Fee: $12 per location, plus city specific fees

  • What You'll Need: Basic business, ownership, and tax information

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How Arizona Sales Tax Works

State, County, & City

  • Your rate may include all three

  • The Arizona Department of Revenue administers state and county taxes and the taxes for Arizona's program cities 

Where does the sale get taxed?

  • Arizona-based retail businesses generally use origin sourcing meaning the location of the seller determines the applicable local tax

  • Remote sellers generally use the customer's Arizona delivery location

Rates Change

Arizona updates its TPT table rates monthly. Use the state's rate lookup tool when you need the rate for a specific location ​

When do I file and pay?

Your filing frequency is based on your annual combined state, county and city TPT liability.

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Annual TPT Liability Filing Frequency

Less than $2,000    Annual

$2,000 – $8,000     Quarterly

More than $8,000    Monthly

 

TPT is due on the 20th of the month following the filing period. Timely electronic returns and payments receive a grace period through the last business day of that month.

 

No sales? You still need to file your required return even if sales and tax due are $0.

How do I file?

  • Arizona TPT returns can be files through AZTaxes.gov

  • Businesses with annual TPT and use-tax liability of $500 or more are required to file electronically

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