Tax Rate Table

Business codes, region codes, and city codes can be found on the tax rate table.

TPT and Other Tax Rate Tables are updated monthly; however, please note that tax rate changes do not necessarily occur every month.

TPT Rate Table - October 2023

 

     

    Remote Seller and Marketplace Facilitator Tax Rate Table

     

    Explanation of Tiered Rates in Arizona

    Jurisdictions in Arizona may opt for a tiered rate structure for single-item purchases over a certain dollar amount. Each jurisdiction sets the price in which the tiered rate structure goes into effect, and the tax rate levied on the single-item for their jurisdiction. The tiered rate may be placed on the price of the entire single-item or the portion over the price where the tiered rate structure goes into effect.

    For cities in which tiered rates “single-item over” applies, the entire sale applies to the “single-item over” code/rate.  Unlike “portion over,” any deductions amounts may be applied to the full amount of the sale.  See filing examples.

    For cities with “portion over” tiered rates, apply the regular retail code/rate to the amount up to the portion over amount.  The portion over code/rate is then applied to the difference between over the “portion over” amount and the total price.  Any deduction amounts must be prorated.  See filing examples.

    To determine what constitutes a “single-item” under the retail classification:

    • A single-item does not refer to multiple transactions on a single invoice.
    • A single-item does not include taxes, add-ons or sales price adjustments.
    • A single-item does not include other related transactions (e.g., the sale price of a car, plus the extended warranty and tax).
    • If a retailer does not break down related costs but instead invoices one lump sum, this entire amount is considered the single-item and subject to the application of the tiered rate calculation.
    • If the invoice is an itemized invoice, the tiered rate application must be calculated separately on each individual item.

    Arizona Tax Rate Look Up Resource

    This resource can be used to find the transaction privilege tax rates for any location within the State of Arizona. Use the physical address or the zip code, or if it is unknown, the Map Locator link can be used to find the location. Select the appropriate business description and the state/county and city (if applicable) transaction privilege tax rates along with the business codes needed to report your transaction will be displayed. Internet Explorer, Chrome and Firefox currently support this feature.

    Arizona Transaction Privilege & Use Tax Rate Look Up Tool

     


    Important Information When Municipalities Pass Tax Rate Changes

    The Arizona Department of Revenue (ADOR) remains focused on serving taxpayers, and the department feels it is important to provide awareness on the sometimes difference between ADOR updating a rate change on its tax tables and the taxing jurisdiction.

    The department has an agreement in place with municipalities that includes a process for tax rate changes by any city or town. There is a 60-day period before implementation so customers and transaction privilege tax (TPT)-licensed businesses have time to prepare for the tax rate change.

    While ADOR can update its system promptly, there are factors with direct impact on businesses, including giving affected businesses enough time to update their sales systems and allowing tax software providers the necessary time to update their software for timely dissemination to clients.

    The department recognizes the importance of providing businesses adequate time to update their systems so they can accurately report and file TPT liability. A business is subject to penalty and interest when it files and fails to remit the correct tax amount because of not having ample time to update a tax collection system for new tax compliance.

    Also, a business can pass on transaction privilege tax to its customers. Without adequate time to implement an increased tax rate, however, a business may pass on the wrong tax to customers. For businesses that collect the new tax rate prior to the effective date, the tax should be submitted to ADOR as “excess city tax” and listed on the reporting form through the online filing process on AZTaxes.gov.