2026 TRANSACTION PRIVILEGE TAX LICENSE RENEWALS
Businesses licensed with the Arizona Department of Revenue (ADOR) were required to renew their transaction privilege tax license (TPT) by January 1, 2026. Penalties and/or late fees will apply to renewals received after January 31, 2026.
If a business does not pay the renewal fee timely, they will receive a bill from ADOR for the unpaid renewal fees plus renewal penalties (The penalty is 50% of the city renewal fee). Additionally, if fees are not paid when renewing, the license will only be mailed to the business once the fees are paid.
A TPT is used for collecting and remitting state, county, and city taxes.
Fastest Way to Renew
File, pay, and renew online through AZTaxes.gov for easier renewals and quickest processing. State law requires taxpayers with multiple business locations to renew their TPT license electronically.
Here are key steps and best practices to help streamline the renewal process and reduce errors.
Remote Sellers and Marketplace Facilitators
Remote sellers and marketplace facilitators without a physical presence in Arizona and having more than $100,000 in gross sales to Arizona customers must renew their TPT licenses.
If the threshold was not met, the business may consider canceling their TPT license for 2026.
Marijuana-Related Licenses
Marijuana businesses should not renew their excise tax license, but they must renew their TPT license every year.
Obtaining License Certificate and Address Updates
Once renewal fees are fully paid, ADOR will mail the TPT License Certificate to the mailing address on file. You should verify and update the mailing address before renewing if needed.
Closing a business?
Businesses that are no longer operating must cancel their license to avoid renewal obligation, fees, and penalties. This process will help ensure account histories remain in good standing.
For more common questions, see the FAQ portion of the Renewing a TPT License page.
UNCLAIMED PROPERTY AUCTION IN FEBRUARY
ADOR will hold its annual public auction of unclaimed property items beginning Wednesday, February 18, 2026 at noon through Sunday, February 22, 2026 at 5:00 p.m.
Each year, ADOR auctions the contents of abandoned safe deposit boxes to the highest bidder. Items for sale include jewelry, coins, currency, and a variety of collectible items that have not been claimed by their owners after many years. Proceeds from items sold from the auction are transferred to a custodial account where the funds will remain for the rightful owners to claim.
The auction is being held by Sierra Auction Management, Inc., and bidding is available at www.sierraauction.com. An opportunity for the public to view the auction items in person will be held on Friday, February 20, 2026 from 9:00 a.m. to 3:00 p.m. at 4298 N. 35th Drive, Phoenix, AZ 85019.
Assets from abandoned safe deposit boxes make up only a portion of unclaimed money the Arizona Department of Revenue safeguards until the funds can be returned to its rightful owner. For more information about the Department of Revenue’s Unclaimed Property Unit and how to search to see if you have unclaimed assets, visit https://azdor.gov/unclaimed-property.
THRESHOLD REMINDER
TPT Electronic Filing and Paying Thresholds
TPT filers with an annual total tax liability of $500 or more are required to file electronically. Visit the Transaction Privilege Tax web page on the ADOR website for more information.
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.
FILING YOUR TAX RETURN
E-filing is a better and faster method of filing your taxes. Some noted taxpayer benefits for e-filing include:
- Increased security.
- Faster processing.
- Fewer errors and miscalculations.
- The enhanced accounting credit for e-filing.
COMMON ERRORS
- Sending in copies or duplicate returns can delay processing.
- Filling out the form incorrectly, for example, entering SSN or EIN instead of the TPT license number.
- Wrong or invalid business or region codes.
- Reporting is different than what is calculated and net taxable reported is greater than the total tax due.
- Entering inaccurate information or miscalculated totals.
- Using a pencil, colored ink, or sending photocopies can cause delays. Remember: Always use a black or blue ink pen.
Check out ADOR’s video on Common Mistakes Made When Submitting a Paper TPT Return to help avoid issues and return rejections.
TPT FILING FACTS
- Keep the account history in good standing and avoid penalties. If no longer in business, cancel the existing TPT license on AZTaxes.gov or submit a Business Account Update Form.
- Verify and update the mailing address instantly and securely at AZTaxes.gov.
- Remember to file the TPT return for the prior month’s activity.
- A $0 TPT return must be filed for temporarily closed businesses. Find more details on our transaction privilege tax web page.
- The tax rate look up tool on AZTaxes.gov is a useful tool for TPT filers in helping them find the TPT rates for any location within the state of Arizona.
DUE DATE REMINDERS
TPT Filing Frequency and Due Dates*- Annually, Monthly, Quarterly
TPT filers are reminded of the following December TPT filing deadlines:
- January 20 - TPT return due date.
- January 29 - Paper returns must be received at ADOR by this date.
- January 30 - 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 Thatcher - Effective date of January 1, 2026
On August 26, 2025, the Mayor and Council of the Town of Thatcher passed ordinance 197-2025, thereby amending the town tax code to increase the transient lodging additional tax classification from three percent (3%) to five percent (5%); and providing for severability.
The (5%) affects the following business classifications:
Hotel/Motel (Additional Tax) (144).
City of Phoenix - Effective date of January 1, 2026
Important change reminder: New 2026 threshold amounts for the retail sales and use tax two-level tax rate structure, as approved by Phoenix voters with Proposition 104 in the August 25, 2015 city election.
The inflation adjustment to the threshold amount will affect sales transacted beginning January 1, 2026 and through December 31, 2027 tax periods.
| Effective Date |
Biennial Tax Period Sales |
Threshold Amount |
| January 1, 2016 |
2016-2017 sales |
$10,000 |
| January 1, 2018 |
2018-2019 sales |
$10,303 |
| January 1, 2020 |
2020-2021 sales |
$10,968 |
| January 1, 2022 |
2022-2023 sales |
$11,631 |
| January 1, 2024 |
2024-2025 sales |
$13,886 |
| January 1, 2026 |
2026-2027 sales |
$14,338 |
The current threshold amount of $13,886 will be adjusted by an incremental amount of $452 to $14,338 for the next two years beginning January 1, 2026.
Any retail sales and/or use tax business activity must be reported in accordance with the new threshold amounts under the two-level tax rate structure utilizing the proper corresponding business code:
Retail Sales (Single Item Portion over $14,338) (366); Use Tax - Single Item Portion over $14,338 (368); Remote Seller - Marketplace Facilitator (Out-of-State with no Arizona Physical Presence) Retail Sales - Single Item Portion over $14,338 (629); Marketplace Facilitators with Arizona Physical Presence Retail Sales - Single Item Portion over $14,338 (366); Marketplace Facilitators with Arizona Physical Presence Third Party Sales - Single Item Portion over $14,338 (629); Medical Marijuana Retail Sales - Single Item Portion over $14,338 (687); Adult Use Marijuana Retail Sales - Single Item Portion over $14,338 (686); Marijuana Retail Sales (Ancillary/Accessory Products) - Single Item Portion over $14,338 (366); Marijuana Use Tax Purchases - Single Item Portion over $14,338 (368).
City of Holbrook - Effective date of January 1, 2026
On October 22, 2025, the Mayor and Council of the City of Holbrook passed ordinance 25-08, 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 two percent (2%) to five percent (5%); and providing Severability.
The (5%) affects the following business classifications:
Hotels (044); Hotel/Motel (Additional Tax) (144).
Maricopa County - Effective date of January 1, 2026
On November 5, 2024, the Maricopa County Transportation Excise Tax (Proposition 479) was voted on as part of the General Election ballot. The measure, approved by Maricopa County voters, extends the existing one-half cent (0.5%) excise tax for 20 years through December 31, 2045. Because there is no change in the tax rate relative to the prior measure (Proposition 400, expiring December 31, 2025), there is no impact to the combined state and county tax rates.
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, January 20, 2026
1:00 p.m. - 4:00 p.m.
Wednesday, February 4, 2026
9:00 a.m. - noon
Common TPT Errors and How to Avoid Them - (Via WebEx)
Wednesday, January 21, 2026
1:00 p.m. - 2:00 p.m.
Thursday, February 5, 2026
10:00 a.m. - 11:00 a.m.
ADOR AZTaxes - (Via WebEx)
Thursday, January 29, 2026
9:00 a.m. - noon
ON-DEMAND TAX EDUCATION TUTORIALS: Please visit https://azdor.gov/taxpayer-education/tpt-tutorials. |
|
|
|
|
|
|
|
|
|
|
|
|
