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Arizona sales tax, explained.

Thresholds, rates, taxability, filing schedules, and the ADOR — everything a remote seller needs to know about Arizona's transaction privilege tax, on one page.

Economic nexus threshold
$100,000
Statewide base rate
5.6%
Transaction threshold
None
PhoenixTucsonMesaScottsdaleChandler
Arizona · major filing jurisdictions
Nexus · Arizona

When you owe sales tax in Arizona.

Either kind of nexus on its own creates the obligation to register for a TPT license, collect, and remit. Arizona uses a sales-only test — there is no transaction-count threshold.

Economic nexus
Threshold
$100,000 in gross sales into Arizona in the current or preceding calendar year
Measurement type
Sales only — transaction count does not factor in
Measurement period
Current or preceding calendar year
Included
Gross sales of taxable and exempt goods; resale transactions and marketplace-facilitated sales are excluded from the count
Marketplaces
Marketplace-facilitated sales do not count toward your threshold — sales processed by a registered marketplace facilitator are excluded when measuring your $100,000 exposure
Physical nexus
Employees / remote staffOffice, store, or warehouseInventory · 3PL · fulfillmentAgents or contractorsConstruction projects

Any physical presence in Arizona — including a remote employee working from the state or inventory held at a third-party fulfillment center — triggers registration from the first sale, with no sales minimum.

Rates · Arizona

What you'll collect, city by city.

The Arizona state TPT rate is 5.6%. City and county taxes stack on top, so the combined rate depends on the delivery address — here's how Arizona's major cities compare across product categories.

JurisdictionCombined rateTangible propertyDigital goodsSaaSServices
ArizonaStatewide base rate5.6%5.6%5.6%5.6%0%
Phoenix9.1%9.1%9.1%5.6%0%
Tucson8.7%8.7%8.7%5.6%0%
Mesa8.3%8.3%8.3%5.6%0%
Scottsdale8%8%8%5.6%0%
Chandler7.8%7.8%7.8%5.6%0%

SaaS is taxed at the state TPT rate of 5.6% only — local city/county taxes do not apply to remotely accessed software. Professional services are not subject to TPT. Rates verified as of June 11, 2026.

Need the exact rate for one address or invoice? Our calculator returns the combined state, county, and city TPT rate for any Arizona address.

Open the sales tax calculator
Taxability · Arizona

Is your product taxable here?

Arizona's transaction privilege tax is broader than most states — tangible goods, digital products, and SaaS are all taxable, while professional services remain exempt.

Product categoryStatusWhat to know
Tangible personal propertyTaxablePhysical goods delivered into Arizona are subject to TPT at the combined rate of the delivery address.
SaaS & cloud softwareTaxableArizona taxes remotely accessed software for both B2B and B2C customers at the 5.6% state TPT rate; local city taxes generally do not apply to SaaS.
Digital goodsTaxableDownloaded and streamed digital products — including e-books, music, and video — are subject to TPT at the full combined rate of the delivery address.
Professional servicesNot taxableConsulting, legal, accounting, and similar professional services are not subject to Arizona TPT.
Bundled hardware + softwarePartialHardware is taxable at the full combined rate; separately-stated SaaS may qualify for the lower state-only rate. Itemize invoices to apply the correct rate to each component.
Shipping & deliveryPartialDelivery charges are generally included in the taxable sales price when inseparable from the sale; separately-stated freight charges may be exempt depending on the transaction structure.
Filings · Arizona

Filing schedules and due dates.

The Arizona Department of Revenue assigns your filing frequency at registration based on your expected TPT liability and adjusts it as your business grows. Returns are required even for periods with zero taxable sales.

FrequencyReturnDue dateWho it applies to
MonthlyMost commonAssigned by the Department of Revenue at registration20th of the following monthDefault assignment for most remote sellers with regular Arizona sales
QuarterlyAssigned by the Department of Revenue at registration20th of the month following the end of each quarterSellers with lower TPT liability, as assigned by the ADOR
AnnualAssigned by the Department of Revenue at registrationJanuary 20 for the prior calendar yearSmall sellers with minimal annual TPT liability

Crossed the threshold, or about to?

A Commenda expert will review your Arizona exposure, register you with the ADOR for a TPT license, and take over the filing calendar — usually within a week.

The state authority

ADOR — Arizona's tax office.

The Arizona Department of Revenue administers all state TPT registrations, filings, and payments through AZTaxes.gov. One account covers registration, returns, and payments for both state and most city TPT obligations.

azdor.gov/business

Registration requires a tax portal username, password, and PIN; you will also need your business entity details and expected Arizona sales to complete the application.

What you can do there
  • Register for a TPT license

    Apply through AZTaxes.gov to obtain your Transaction Privilege Tax license before collecting from Arizona customers.

  • File returns and pay TPT

    All TPT returns, amendments, and payments are submitted through the AZTaxes portal on your assigned schedule.

  • Look up the rate for any address

    The ADOR's tax rate lookup tool returns the exact combined state, county, and city TPT rate for any Arizona delivery address.

  • Verify a resale certificate

    Confirm a customer's TPT license is active before accepting an exemption claim for a resale transaction.

Exposure & exemptions · Arizona

If you're behind, or your buyers are exempt.

Back-period exposure & voluntary disclosure

Arizona offers a voluntary disclosure program for out-of-state sellers who come forward before the ADOR initiates an audit or contact.

Program
Arizona Voluntary Disclosure Program, administered by the ADOR
Penalties
Generally waived for sellers who come forward voluntarily and cooperate
Interest
Still due on unpaid TPT liability — interest relief is not part of the standard program
Registration
Seller must register for a TPT license as part of completing the disclosure agreement

Exemption certificates accepted

Collect a valid exemption certificate at the time of sale and retain it in your records — the burden of proof rests with the seller.

Resale
Arizona Form 5000 Transaction Privilege Tax Exemption Certificate (resale)
Multi-state
MTC Uniform Sales and Use Tax Certificate accepted; Arizona is not a member of the Streamlined Sales Tax (SST) program
Nonprofit / government
Arizona Form 5000 used for qualifying government and nonprofit purchases; eligibility rules apply
Manufacturing
Arizona Form 5000 supports manufacturing machinery and equipment exemptions for qualifying production activities

FAQ · Arizona

Arizona questions, answered.

The questions remote sellers ask us most about Arizona's transaction privilege tax.
Read our FAQ library

Arizona's TPT is technically a tax on the privilege of doing business in the state, imposed on the seller rather than the buyer — but in practice it functions like a sales tax and is collected from customers at the point of sale. Remote sellers register for a Remote Transaction Privilege Tax (RTPT) license.

Yes. Arizona taxes remotely accessed software for both B2B and B2C customers. The applicable rate is the 5.6% state TPT rate; local city and county taxes generally do not apply to SaaS delivered electronically.

Yes. Downloaded and streamed digital products — including e-books, music, and video — are subject to TPT at the full combined rate of the delivery address, including state, county, and applicable city taxes.

No. Sales processed by a registered marketplace facilitator are excluded from the $100,000 measurement. Only your direct sales are counted when assessing whether you have crossed the economic nexus threshold.

No. Arizona uses a sales-only test: $100,000 in gross sales into the state in the current or preceding calendar year. There is no separate 200-transaction test.

Any physical presence in Arizona creates nexus immediately — including a remote employee residing in the state, inventory stored at a third-party fulfillment center, a sales representative, or any construction activity. No minimum sales threshold applies to physical nexus.

Once you cross the $100,000 threshold, you must obtain a TPT license and begin collecting on the first day of the month that starts at least thirty days after the threshold is met, for the remainder of that year and the following calendar year.

Yes. Commenda monitors your Arizona exposure, registers you with the ADOR for a TPT license, calculates the correct combined rate on every transaction, and files each return on your assigned schedule. Book a call to see it on your own data.

United States

Sales tax, state by state.

* No state-level sales tax. Alaska's local jurisdictions still enforce economic nexus through the ARSSTC.