TWO WEEKS LEFT TO RENEW 2026 TPT LICENSE
Arizona businesses have until January 1, 2026 to renew their transaction privilege tax (TPT) license and remain in compliance. Licenses not renewed or canceled by January 31 will continue to collect additional penalties.
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.
The Arizona Department of Revenue (ADOR) provides key steps and best practices to help streamline the renewal process and reduces 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. Taxpayers 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.
CONSTRUCTION CONTRACTING
The Arizona Department of Revenue provides resources and webpages to assist contractors. The agency is continuously improving and innovating its website to provide quick guidance to taxpayers.
Taxpayers will find definitions, insight into speculative builders, and key differences between Maintenance, Repair, Replacement and Alteration (MRRA) and Modification.
We encourage contractors to visit the Contracting Guidelines pages and explore the information.
TPT ACCOUNT UPDATES
Businesses should submit any necessary updates to ensure their account is in good standing. If the business or a location is closed, the license must be canceled or the location removed to avoid renewal requirements, as well as applicable fees and penalties.
Businesses should keep their owner/officer information current, as this is how ADOR representatives authorize callers. Owner/officer changes are submitted through the Business Account Update form.
Taxpayers can watch the Business Account Update tutorial to learn how to properly complete the paper form.
TPT FILING FACTS
- Payment Voucher: You must mail a TPT-V (voucher) with your paper check when submitting a payment for an e-filed TPT return or late TPT return.
- Tax Rate: Use the correct tax rate for the business activity and jurisdiction. When an account rate is used, it could cause a balance due on your account. View the Tax Rate Tables available on AZDOR.gov monthly.
- Accounting Credit: Only available to those that file and pay their returns by the established due dates.
- Deduction Codes: Ensure the deduction code being reported is applicable to the business classification; and the totals entered in the transaction detail tables equal the totals entered in the corresponding Schedule A. Deductions reported with an incorrect or missing deduction code will be disallowed and penalties and interest may apply.
DUE DATE REMINDERS
TPT Filing Frequency and Due Dates*- Monthly
TPT filers are reminded of the following November TPT filing deadlines:
- December 22 - TPT return due date.
- December 30 - Paper returns must be received at ADOR by this date.
- December 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 Chino Valley - Effective date of November 1, 2025
On August 26, 2025, the Mayor and Council of the Town of Chino Valley passed ordinance 2025-955, thereby amending the town tax code to increase the tax rate for the Manufactured Buildings classification from two percent (2%) to three percent (3%); and providing for repeal of conflicting ordinances and for severability.
The (3%) affects the following business classifications:
Manufactured Buildings (027).
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).
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, December 16, 2025
1:00 p.m. - 4:00 p.m.
Common TPT Errors and How to Avoid Them - (Via WebEx)
Wednesday, December 17, 2025
1:00 p.m. - 2:00 p.m.
ADOR Withholding for Employers and Payroll Service Providers - (Via WebEx)
Thursday, December 18, 2025
1:00 p.m. - 4:00 p.m.
ON-DEMAND TAX EDUCATION TUTORIALS: Please visit https://azdor.gov/taxpayer-education/tpt-tutorials. |
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