If your limited liability company (LLC) sells physical products or certain types of services, you will need to collect and pay sales tax. In Arizona, the first step is visiting the revenue department’s website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit.
What Products and Services Are Subject to Sales Tax in Arizona?
In Arizona, sales tax is called a transaction privilege tax (TPT). Sales of tangible goods are subject to TPT tax in Arizona. Telecommunications services, amusement services, and construction contracting are also subject to TPT tax. Groceries and gasoline are also subject to TPT tax.
Arizona Sales Tax Rate
The sales tax rate in Arizona is 5.6%.
Five states have no sales tax. Colorado has the lowest sales tax at 2.9%, while California has the highest rate at 7.25%.
How to Register for Arizona Sales Tax
In Arizona, acquire a seller’s permit by following the Department of Revenue’s detailed instructions for registration:
- Go to the Arizona Tax website.
- Register for an account.
- Fill out the TPT registration form.
- Pay the $12 fee.
Use our Sales Tax Calculator to calculate taxes and total purchase amount.
In Arizona, paying TPT tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.