The Ultimate Arizona Sales Tax Guide

Arizona’s Transaction Privilege Tax (TPT), often called sales tax, is a tax imposed on businesses for the privilege of operating in the state. 

Navigating the TPT is tricky, as there are several Arizona-specific rules you need to know.

This Arizona sales tax guide will simplify the process, show you how to calculate TPT for different cities and counties, and check if you should collect it.

We’ll also share a reliable solution for streamlined sales tax management that keeps your business compliant across the United States.

Arizona TPT Rate Range 2025

Arizona's state TPT rate is 5.6%. However, counties and cities can also impose local TPT.  

For instance, Clifton in Greenlee County has a TPT rate of 9.1%. This includes a state TPT rate of 5.6%, county TPT of 0.5%, and a city sales tax rate of 3%.

How to Calculate TPT in Arizona

You’ll need to add these rates to calculate your sales tax in Arizona accurately:

• State sales tax
• County sales tax
• City sales tax
• District sales tax

For instance, let's calculate the TPT or sales tax rate of Queen Creek, Maricopa County:

• Arizona state TPT rate of 5.6%
• Maricopa County TPT rate of 0.7%
• City TPT rate of 2.25%

This brings the total TPT rate to 8.55%.

Find your city here to get a breakdown of your city’s rates.

TPT Rates in Arizona by County

Here are the counties with the highest sales tax rates in Arizona: 

Collecting Arizona TPT from Customers

Here’s what you need to know about collecting sales tax in Arizona:

Do I Have to Collect Arizona TPT from Customers?

Any business with a physical presence and other nexus connections must collect TPT or sales tax in Arizona.

What Creates Sales Tax Nexus in Arizona?

You have a sales tax nexus in Arizona if you meet any of the following factors:

• Physical nexus: Businesses that own or lease real or personal property in Arizona, such as offices, inventories, and more.
• Employees: Businesses with independent contractors, employees, or other non-employee representatives who conduct business activities on behalf of the company in the state.
• Economic nexus: Marketplace facilitators and remote sellers who make more than $100,000 in the state.
• Delivery of taxable goods and services: Businesses who deliver merchandise into Arizona on vehicles owned or leased by the taxpayer. 

Learn more about sales tax nexus and when you’re required to collect sales tax.

Do I Have to Collect TPT from Arizona Customers if I Sell on Amazon, Walmart, eBay, or Etsy?

No. 

Arizona has a marketplace facilitator law, requiring platforms like Etsy or Amazon to collect sales tax of third-party sellers on their platforms. However, if a marketplace facilitator’s sales don’t exceed $100,000, they don’t have to register, collect, or remit Arizona sales tax.

Taxable Products in Arizona

Arizona imposes sales tax on most tangible personal property and services, including clothing and SaaS products.

Here’s a detailed run-down of the items taxed in Arizona.

Are Groceries Taxable in Arizona? 

Grocery items, like food products intended for human consumption, such as butter and meat, are generally exempt from the state’s transaction privilege tax. 

Is Clothing Taxable in Arizona?

Yes, clothing is subject to sales tax in Arizona.

Are Digital Products Taxable in Arizona?

Yes, digital products are taxed in Arizona. 

Is Software-as-a-Service (SaaS) Taxable in Arizona?

 Yes. SaaS is a personal property rental because access to the software is dependent on a subscription payment. The renting of personal property is subject to TPT.

Are Services Taxable in Arizona?

Professional or personal services are not subject to sales tax if the sale of tangible personal property is a small part of what the service provides. The state also doesn’t tax services offered along with the sale of taxable goods in stores.

Tax-Exempt Items

Some items that are tax-exempt in Arizona are:

• Mining and metallurgical supplies.
• Natural gas or liquefied petroleum gas used to propel a motor vehicle.
• Drugs and medical oxygen, including delivery hose, mask or tent, regulator and tank, if prescribed by a member of the medical, dental, or veterinarian profession.
• Livestock and poultry sold to persons engaging in farming, ranching, or producing livestock or poultry.
• Textbooks, sold by a bookstore, required by any state university or community college.

How to Register for an Arizona TPT License

To register for a TPT license, you can :

• Create an account and register online via the Arizona Department of Revenue website.

• Mail the completed Arizona Joint Tax Application (JT-1) to:

Arizona Department of Revenue

PO Box 29032

Phoenix, AZ 85038-9032

• Deliver the filled-out JT-1 form in person to any of the addresses listed on this ADOR Website.

Learn how to register for a seller's permit in every US state.

Do I Need an Arizona TPT License if I’m Only a Wholesaler? 

Yes, you need a state TPT license even if you’re a wholesaler.

Do I Need an Arizona Seller's Permit if I Only Sell Temporarily in the State?

Yes. Even if you're hosting or participating in a special event, swap meet, or an arts and crafts show in Arizona, you should apply for a TPT license.

How to Collect TPT in Arizona

Arizona uses destination-based sales tax sourcing for businesses located outside the state. This means that if you sell to a customer in Arizona from another state, you must apply the sales tax rate based on the buyer’s shipping address.

Meanwhile, if your business is located in Arizona, the sales tax applies origin-based sourcing rules. This means that to sell taxable goods to Arizona residents from within the state, you must collect the sales tax rate of your business’s address.

Should You Collect TPT on Shipping Charges in Arizona?

If a retailer charges for delivery from their location to the purchaser’s location and clearly separates this charge on the sales invoice, the shipping fee isn’t subject to tax.

But if it’s included in the sale price, it’s taxable.

How to File and Pay TPT in Arizona

There are multiple ways to file and pay Arizona transaction privilege tax:

• File online: File electronically through the Arizona Department of Revenue.
• File by mail: Mail Form TPT-EZ for businesses in a single location and TPT-2 for businesses in multiple locations to:

Arizona Department of Revenue

P.O. Box 29010

Phoenix, AZ 85038

• Let Zamp handle your Arizona sales tax filing and remittance so you won’t ever have to deal with a sales tax return! 

Explore how you can file and pay sales tax in other US states.

FAQs on Paying and Filing Arizona TPT

What Is Use Tax?

Use tax applies to items purchased or rented for use in the city when no TPT was paid at the time of purchase. Use tax rates are the same as the sales tax / TPT.

I Didn’t Collect any Arizona TPT During this Period. Do I still Need to File a Return?

Yes. 

Even if you didn’t collect any sales tax during the taxable period, you can mark the box “no gross receipts” and submit the reporting form.

What Is the Penalty for Filing and/or Paying Arizona TPT Late?

If a return is filed late, a penalty of 4.5% of the tax owed is charged for each month (or part of a month) the return is overdue. The minimum penalty amount is $25 but can go up to 25% of the tax due or $100 per return, whichever is higher.

If you pay late, a penalty of 0.5% of the tax owed is added for each month (or part of a month) the payment is late — to a maximum of 10%.

Can I Amend an Arizona TPT Return? 

Fill out the TPT-2 and TPT-EZ forms to amend a return and check the box labeled "Amended Return" in Part I under Taxpayer Information. This lets you update any return from a previous reporting period.

How Often Do I Need to File and Pay TPT in Arizona?

Here’s how your annual tax liability determines your filing and paying frequency: 

• Yearly: Less than $2,000
• Quarterly: $2,000 to $8,000
• Monthly: More than $8,000

Arizona TPT Due Dates

Arizona monthly sales tax filing due dates:

Arizona quarterly sales tax filing due dates:

Arizona annual sales tax filing due date:

Let The Experts Handle Your Arizona Sales Tax Filing

Taking your business to the next level shouldn’t be slowed down by sales tax challenges.

And that’s where Zamp comes in.

Zamp takes the complexity out of sales tax with seamless setup, accurate calculations, and one-click filing and registration.

Get started with Zamp and simplify sales tax today!