Transaction Privilege (Sales) and Use Tax

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Similar to other cities in Arizona and the state of Arizona, Phoenix imposes a transaction privilege (sales) tax on certain business activities. The city tax is in addition to the tax imposed by the state. While the city rate varies by business activity, it is two percent (2.0%) on most activities.  A business engaged in taxable activity will need to obtain a transaction privilege (sales) tax license with Phoenix.


  • What's new in TPT - Transaction Privilege (Sales) Tax Simplification? Please visit the state of Arizona Department of Revenue's webpage at for updated information.  See our License Update 2016 bulletin for license specific information.
  • Upcoming Proposition 104 Transaction Privilege Tax Rate Changes effective January 1, 2016:  See our Tax Division bulletin for additional information.

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Phoenix now offers free online filing of sales tax returns and payments. To "go green" and sign up for electronic filing, please click the button below.

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Phoenix offers a free transaction privilege and use tax seminar. Click here to learn more.