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Arizona Sales Tax Guide for E-Commerce Retailers

Fast Facts About Arizona Sales Tax

Note: Unlike most other states in the US, Arizona has “transaction privilege tax” (TPT) rather than sales tax. White TPT is considered a “tax on privilege for doing business in the state of Arizona” and it is handled very similarly to sales tax.

Arizona state sales tax rate 5.6%
Does Arizona have local sales tax rates? Yes
Arizona taxing authority Arizona Department of Revenue
Arizona sales tax questions phone number 602-255-3381

 

Am I required to collect transaction privilege tax in Arizona?

Businesses that have an employee, location (including inventory in a warehouse), or who do other business in the state are required to register for a TPT permit and collect TPT from buyers in Arizona. 

E-commerce businesses with economic nexus in Arizona are also required to register and collect. 

Your business has economic nexus in Arizona if you made more than $100,000 in gross sales to buyers in the state in the previous or current calendar year.

How to Register for an Arizona TPT (Sales Tax) Permit

You can register for Arizona TPT online at the Arizona Department of Revenue.

Keep in mind that Arizona TPT permits need to be updated once per year, due by early January. Need help? Contact us for help with your Arizona transaction privilege tax (sales tax) registration.

How to Collect Arizona TPT (Sales Tax)

Arizona is an origin-based sales tax/TPT state. This means that, for sellers located in Arizona making sales to buyers in Arizona, you collect the TPT rate where your business is located. 

However, if you are not based in Arizona, sales tax collection from buyers in the state become more complex. We recommend this resource at the Arizona Department of Revenue. If you need help collecting the right rates in Arizona, contact us. 

Learn more about how to collect the right amount of state plus local sales tax here.

Is shipping taxable in Arizona?

No, as long as the shipping charges are separately stated on the invoice then the shipping charges your customers pay to transport the item are not taxable in Arizona.

Arizona Transaction Privilege Tax Due Dates

TPT tax returns are due the final day of the month following the monthly, quarterly or annual reporting period. 

Arizona requires that you file a TPT return even if you do not have any tax to remit for the taxable period.

How to File Transaction Privilege Tax in Arizona

When your Arizona TPT (sales tax) due date rolls around, you can either file yourself online or let a partner like HOST take this onerous task off your plate. 

Learn more about handing off your sales tax filings to HOST here!

More about Arizona Transaction Privilege Tax

Learn more about Arizona transaction privilege tax at the Arizona Department of Revenue.