AZ Dept of Revenue - Transaction Privilege Tax Changes and News March 2026

March 18, 2026

CommunityEconomicHuman InterestPress Release

SPRING TPT REMINDER

Six steps to consider in cleaning up your accounts

Spring is known as a time when you clean out your homes, open windows, and let the dust and dirt out. With that time approaching and as part of that process, consider the spring cleaning of your transaction privilege tax (TPT) accounts. Here are six ways you can do that:

Mailing Address: Maintain a current mailing address on your transaction privilege and use tax licenses, as well as your corporate and withholding accounts (only for correspondence delivery).
Locations: Add new and/or close unused locations for TPT licenses. Failure to close a location can result in license fees when renewing. (If you moved locations, you must close the prior location and add the new location).
Existing TPT Licenses: Cancel or close an existing unused TPT license. Failure to close your TPT license can result in penalties for not renewing.
DBA Changes: Make changes to “Doing Business As” (DBA) name.
New Additions: Add new reporting jurisdictions, new business codes, or business or rental locations.
Corporate Officer or Owner: Businesses should keep their owner/officer information current, as this is how ADOR representatives authorize callers.

To make these changes, business taxpayers log into their AZTaxes account, click on “View” in the “Actions” column on the “Business List” page and click on “Account Update.” Owner/officer changes are submitted through the Business Account Update form.

Among your “housekeeping” responsibilities during this spring cleaning season, consider these updates as a worthwhile investment of your time and effort to organize, increase productivity, and get a sense of accomplishment that your accounts are up to date. There is no time like the present, why not get started today?

RENEW 2026 TRANSACTION PRIVILEGE TAX LICENSES NOW

Businesses licensed with the Arizona Department of Revenue (ADOR) were required to renew their TPT license by January 1, 2026.

If your business has not renewed your TPT license for 2026, ADOR is sending you an automatic renewal billing letter soon. This renewal letter indicates if the taxpayer has overdue renewal fees. Businesses will receive one renewal notice per license from ADOR, regardless of where the business is located.

Businesses should act now to avoid penalties and delays in receiving their TPT License.

Once a business has renewed their TPT license and paid the license in full, the information is validated and the new TPT license certificates are sent to the mailing address on file with ADOR.

To renew your license, go to www.AZTaxes.gov.
Log in using your username and password.
Click “License Renewal” in the ‘Action’ section of your Business List or select “License Renewal” on the left-hand navigation bar. (You will need the pertinent information for renewal, any changes, payment information, and your e-signature PIN.)

If you do not see these options, you have not linked your account to your TPT license, the primary user has not given you access to renew the license, or the business has already renewed the license. See AZTaxes User Access for more information on primary and delegate users. For more information, visit Renewing a TPT License.

FILING YOUR TPT RETURN

A paper Form TPT-EZ can only be used for businesses with one location and less than $500 in annual TPT and use tax liability, which means you may be required to file electronically. Failure to comply with the electronic filing and payment requirements may result in penalties.

Adding a location or filing electronically triggers the requirement for that tax period and beyond.

We strongly encourage taxpayers to file online through the AZTaxes.gov website for faster processing and fewer errors.

FILING FREQUENCY

The Arizona Department of Revenue requires that taxpayers file their TPT return according to their assigned tax liability until the tax liability exceeds the filing thresholds. TPT filing frequency is determined by the amount of a business’ total estimated annual combined Arizona, county, and municipal TPT liability.

Annually: Less than $2,000 estimated annual tax liability.
Quarterly: $2,000 - $8,000 estimated annual tax liability.
Monthly: More than $8,000 estimated annual tax liability.

To change the filing frequency, businesses must request through a Form 10193 Business Account Update and send it to the address on the form; this function cannot be completed online. The tax liability will be reviewed, and if it falls within the thresholds, the filing frequency will be changed during the next available filing period. NOTE: If there are delinquencies on the business account, the filing frequency cannot be changed.

HOW TO LINK EXISTING TPT LICENSE NUMBER TO THE NEW USER ACCOUNT

The Department encourages businesses to license their business through AZTaxes for quicker registration and processing of their application, along with streamlined filing and paying transaction privilege and withholding taxes.

Apply for a New License
When applying through AZTaxes, the first step is creating an account (user account) and applying for a license. The steps to create an account are as follows:

Go to www.AZTaxes.gov.
Click on “Enroll to File and Pay Online” under Businesses.
Complete the required fields annotated with a red asterisk.
Read and check the Terms of Use policy acceptance box.

Click “Register.” You will receive two emails from Noreply@azdor.gov within 24 hours. The first email will contain your username, and the second will provide a temporary password. Please check your spam folder if you do not find these emails in your inbox.

For visual instructions on creating a user account, see: https://youtu.be/5H_X8HOBPf0.

Connecting an Existing License to User Account
If you are required to file and pay electronically but originally applied for a license by paper, you must create a user account through AZTaxes and link (or connect) the user account with the existing TPT License. Do not reapply for a license through AZTaxes if you already have a license.

Instead, you will link the license and user account. Similarly, when you open a bank account in person, they do not create an online login for you, but you create an online account and connect your bank account with your login.

For visual instructions on linking your account, see this video: https://youtu.be/gd3BGDmYNkM.

COMMON ERRORS

ADOR wants businesses to be successful when filing their business’ transaction privilege tax returns. The main reason TPT paper returns do not process correctly is that they are filed by paper! Filing online at AZTaxes.gov reduces the chance for errors because most of the information included on your return is pre-populated for you based on your TPT license information.

If you must file by paper and have an annual waiver in place, make sure to file appropriately. (Businesses with an annual transaction privilege tax (TPT) and/or use tax liability of $500 or more during the prior calendar year are required to file and pay electronically.)

Watch the Common Errors video to learn some of the top reasons returns do not process correctly to your TPT account and how they can be avoided.

For more helpful tips and error explanations, see the Notice and Correspondence Resource Center.

FILING FACTS

If your primary user email no longer exists, you will need to register as a new user for AZTaxes. ADOR recommends this be an officer/owner of the business. Review the Setup Your AZTaxes.gov Account fact sheet for instructions on registering a new user. Once registered, complete a Business Account Update to change the primary user to the new user account.
Make sure you are claiming the correct deduction codes on your TPT return.
Remember to click “Submit” when submitting a TPT return on AZTaxes. Clicking “Save” does not submit your return.

DUE DATE REMINDERS

TPT Filing Frequency and Due Dates*- Monthly

TPT filers are reminded of the following February TPT filing deadlines:

March 20 - TPT return due date.
March 30 - Paper returns must be received at ADOR by this date.
March 31 - Electronic return filed in AZTaxes must be submitted before 11:59 p.m. on this date. Electronic payment made in AZTaxes must be submitted before 11:59 p.m. on this date.

*The electronic due date for TPT return is dependent on the return and payment being timely and filed electronically.

TAX CHANGES

Town of Cave Creek - Effective date of February 1, 2026

On November 18, 2025, the Mayor and Council of the Town of Cave Creek passed ordinance 2025-16, thereby amending the city tax code to increase the transaction privilege tax rate on Hotels from three percent (3%) to five percent (5%); and increasing the transaction privilege tax rate on Hotel/Motel (Additional Tax) from four percent (4%) to five percent (5%); providing Severability.

The (5%) affects the following business classifications:

Hotels (044); Hotel/Motel (Additional Tax) (144).

City of Tucson - Effective date of March 1, 2026

On December 16, 2025, the Mayor and Council of the City of Tucson passed three ordinances:

Ordinance 12214, amending Chapter 19, Article III, Division 4, Sections 19-1070 and 19-1080 of the city code to increase the tax rate on Public Utility (Additional Communications) from four and a half percent (4.5%) to five percent (5%); and increasing the tax rate on Public Utility (Additional Utility) from four and a half percent (4.5%) to five percent (5%).
Ordinance 12215, amending Tucson code Chapter 19, Article I, Division 1, Section 19-1 and 19-66 to create the Occupational License Tax Rate for Transient - Non Hotel facilities that are not classified as hotels for property taxation under § 42-12001. The rate is ten percent (10%) for these vacation or short-term rentals.
Ordinance 12218, amending Chapter 19, Article I, Division 5, Section 19-66 of the city code to increase the Occupational License Tax Rate on Hotels from six percent (6%) to nine percent (9%); and decreasing the Bed Surtax (Additional Tax) (Per night) from four dollars ($4.00 ea.) to the rate of zero dollars ($0.00 ea.).

	Business Code	Old Tax Rate	New Tax Rate
Hotels	044	6.00	9.00
Bed Surtax (Additional Tax) (Per Night)	035	$4.00 each	$0.00 each
Public Utility (Additional Communications)	105	4.50	5.00
Public Utility (Additional Utility)	104	4.50	5.00
Transient Non-Hotel Rental	544	N/A	10.00

EDUCATION, TUTORIALS AND TRAINING

All ADOR workshops are free of charge. Below are upcoming options available to taxpayers. To register or access online workshops, tutorials and resources, visit azdor.gov/taxpayer-education.

WORKSHOPS

ADOR Business Tax Basics - (Via WebEx)

Tuesday, March 18, 2026

1:00 p.m. - 4:00 p.m.

Tuesday, April 7, 2026

9:00 a.m. - noon

Common TPT Errors and How to Avoid Them - (Via WebEx)

Wednesday, March 19, 2026

1:00 p.m. - 2:00 p.m.

Wednesday, April 18, 2026

10:00 a.m. - 11:00 a.m.

ADOR Marijuana Taxation - (Via WebEx)