Arizona Sales Tax Rate, Rules & Filing (2026)
Arizona doesn't call it sales tax — it's the Transaction Privilege Tax, 5.6% at state level and about 9.1% in Phoenix. SaaS is taxable, and economic nexus begins at $100,000.
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Key Takeaways
Arizona's Transaction Privilege Tax (TPT) has a 5.6% state rate, with combined state, county, and city rates reaching about 11.2% depending on location [1]. You have economic nexus once gross retail sales into Arizona exceed $100,000 in the current or prior calendar year, with no transaction-count trigger [2]. Arizona taxes SaaS under the personal property rental classification and taxes digital goods; food for home consumption is exempt from the state rate but many cities tax it [3][4]. A proposed TPT assessment must be protested within 45 days [6].
What is taxable in Arizona?
SaaS
Taxable
Clothing
Taxable
Groceries
Partial
Digital Goods
Taxable
What are the sales tax rates in Arizona?
Arizona's transaction privilege tax (TPT) is the state's version of sales tax, with a state rate of 5.6%. County and city taxes push combined rates above 10% in some areas; Phoenix is 9.1%. TPT is legally a tax on the seller's privilege of doing business, though sellers pass it through to buyers.
Component | Rate | Scope |
|---|---|---|
State TPT | 5.60% | Statewide |
County + city | up to ~5.6% | Varies by location |
Combined | 5.60%–11.20% | Varies by location |
To find the combined rate for a specific address, use our US sales tax calculator.
What is the sales tax registration and nexus threshold in Arizona?
Arizona economic nexus applies once your gross retail sales into the state exceed $100,000 in the current or prior calendar year. There is no transaction-count trigger, and SaaS revenue does not count toward the retail-classification threshold. Physical presence creates nexus immediately.
What is the marketplace facilitator law in Arizona?
Arizona's marketplace-facilitator transaction privilege tax (TPT) collection requirement took effect 1 October 2019, under H.B. 2757, codified at A.R.S. § 42-5044. A marketplace facilitator must obtain a TPT licence and collect and remit TPT once its Arizona gross sales — combining its own sales and sales made on behalf of marketplace sellers, before deductions, with affiliated persons aggregated — exceed $100,000 for the current or previous calendar year — the facilitator threshold has been $100,000 since the requirement took effect, while the general remote-seller threshold phased down from $200,000 in 2019 to $150,000 in 2020 to $100,000 for 2021 and later. Sales made through a marketplace facilitator that reports and remits TPT are excluded from an individual marketplace seller's own economic nexus calculation.[8]
What are the sales tax filing frequencies and deadlines in Arizona?
Arizona assigns monthly, quarterly, or annual filing based on tax liability. Paper returns are due the 20th of the month following the reporting period; electronic returns are due the last business day of that month. Most remote sellers file and pay electronically. For the portal, return, and step-by-step, see our guide to filing Arizona sales tax online.
What is exempt from sales tax in Arizona?
Arizona exempts groceries from the state TPT, though many cities tax food. Prescription drugs and many medical devices are exempt. SaaS is taxable in Arizona under the personal property rental classification.
How do resale and exemption certificates work in Arizona?
Arizona buyers use Form 5000A (resale certificate) for purchases bought to resell, and Form 5000 for other exemptions; the buyer gives the completed form to the seller rather than filing it with the state [5]. ADOR recommends limiting a certificate to a 12-month period, and a blanket certificate can cover up to 48 months when the buyer's TPT licence is verified each year [5].
For the official form, multistate certificate rules and expiry, see the Arizona resale certificate guide.
What are the sales tax penalties in Arizona?
Late filing carries a penalty of 4.5% of the tax due per month, and late payment adds 0.5% per month, with the combined penalty capped at 25%. Interest accrues from the due date. Our Arizona filing guide lists late filing penalties, interest, and what to do if you missed a return.
How do sales tax audits and appeals work in Arizona?
After an audit, ADOR issues a proposed assessment, and you have 45 days to file a written protest [6]. Unresolved protests move to an informal conference or a hearing before an administrative law judge, then to the ADOR Director, the State Board of Tax Appeals, and ultimately the Arizona Tax Court [6].
Sources
[2] Arizona DOR — Economic Threshold for Out-of-State Sellers
[3] Arizona DOR — Computer Hardware, Software and Data Services (SaaS taxable)
[8] Arizona Revised Statutes § 42-5044 (Arizona Department of Revenue economic threshold guidance)
[9] Arizona DOR — Conducting Taxable Retail Activity (professional services)
[10] Arizona Revised Statutes § 42-5010 (TPT business classifications)
Verified July 2026 against Arizona Department of Revenue published guidance.
Frequently Asked Questions
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This is an estimate based on location alone. The tax you owe also depends on what you sell, who you sell to and the exact delivery address. If you intend to rely on these rates, use the Kintsugi platform (opens in a new tab).