Arizona sales & use tax.
The facts an advisor checks first — rate, nexus threshold, marketplace rules — with links to the controlling authority. Arizona administers its tax as a Transaction Privilege Tax (TPT), which changes more than the name.
Arizona: rate, nexus & administration.
- State Transaction Privilege Tax (TPT) rate
- 5.6%
- Local rates
- City and county TPT rates commonly bring combined rates above 8%
- Economic nexus
- $100,000 in sales · effective October 1, 2019Phased down: $200,000 for 2019, $150,000 for 2020, and $100,000 since January 1, 2021.Controlling authority: A.R.S. § 42-5044(A)(1) ↗
- Marketplace facilitator
- Yes — effective October 1, 2019
- Streamlined (SST)
- Not a member
- Administered by
- Arizona Department of Revenue ↗
What to watch in Arizona
- TPT is legally a tax on the seller’s privilege of doing business, not a true sales tax — classifications and deductions differ from most states.
- Remotely accessed (SaaS) software has generally been treated as taxable under the personal property rental classification.
- Groceries are exempt at the state level, but many cities tax them under their own TPT codes.
Rates, thresholds, and taxability change mid-year — verify against the Arizona Department of Revenue before advising. In L3i, every determination is cited to the controlling authority.
The Arizona voluntary disclosure agreement.
Behind in Arizona? There’s a front door. The voluntary disclosure program lets a business settle unregistered-period exposure on defined terms — before the state finds it first. The terms that shape the client conversation:
Administered by the Arizona Department of Revenue ↗ · also reachable through the MTC multistate voluntary disclosure program. Program terms as of February 2026 — confirm current terms before filing. L3i pairs the exposure math with the filing itself — see exposure analysis & VDA services.
Arizona, in brief.
What is the economic nexus threshold in Arizona?
$100,000 in sales, effective October 1, 2019. Phased down: $200,000 for 2019, $150,000 for 2020, and $100,000 since January 1, 2021. Once the threshold is crossed, remote sellers must register with the Arizona Department of Revenue and begin collecting.
What is the sales tax rate in Arizona?
The state Transaction Privilege Tax (TPT) rate is 5.6%. City and county TPT rates commonly bring combined rates above 8%.
Do marketplace facilitators collect Arizona sales tax?
Yes — marketplace facilitators have been required to collect since October 1, 2019. Direct (non-marketplace) sales remain the seller’s obligation.
How does a remote seller register for Arizona sales tax?
Register with the Arizona Department of Revenue before collecting — a remote seller must register once it crosses the economic nexus threshold ($100,000 in sales).
Does Arizona offer a voluntary disclosure agreement (VDA)?
Yes — the Arizona Department of Revenue administers a voluntary disclosure program with a lookback of 48 months (4 years). Penalties are generally waived; interest is generally still due. Anonymous initial contact is not offered — the taxpayer is identified at application.
A page tells you the rule. The platform applies it — and remembers why.
L3i runs Arizona determinations against a deterministic rules engine, cites the controlling authority, and captures your firm’s judgment so the next Arizona question starts further ahead.
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