State sales tax rate5.6%
* While the base rate applies statewide, it’s only a starting point for calculating sales tax in Arizona. For an accurate tax rate for each jurisdiction, add other applicable local rates on top of the base rate.
Arizona sales tax basics
The Arizona (AZ) state sales tax rate is currently 5.6%. Depending on local municipalities, the total tax rate can be as high as 11.2%.
Sales tax is a tax paid to a governing body (state or local) for the sale of certain goods and services. First enacted in the United States in 1921, sales tax dates back to ancient Egyptian times where paintings depict the collection of tax on commodities. Arizona first adopted a general state transaction privilege tax in 1933. Since that time, the rate has risen to 5.6%.
As a business owner selling taxable goods or services, you act as an agent of the state of Arizona by collecting transaction privilege tax from purchasers and passing it along to the Department of Revenue. This is an important point worth emphasizing. Any transaction privilege tax collected from residents belongs to the Department of Revenue. As a business owner, it is your responsibility to manange the transaction privilege tax you collect to remain in compliance with state laws and avoid penalties and interest.
How to register to collect sales tax in Arizona
Businesses may register for an Arizona Transaction Privilege Tax License online by visiting AZTaxes and following the instructions provided. The Arizona Department of Revenue recommends all new businesses register online. It’s fast, free, and more reliable than other options.
The Arizona Department of Revenue recommends all taxpayers filing transaction privilege tax file online. It’s faster, more reliable, and free.
To file your return online, visit AZTaxes and follow the instructions provided.
Based on the total transaction privilege tax collected, businesses are assigned a filing frequency. Of course, the government will always accept payments sooner than required so filers may accelerate payments if they choose.
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