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Transaction Privilege (Sales) and Use Tax

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.

UPDATE! 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 2015 bulletin for license specific information.

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


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



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