Arizona businesses are reminded to renew their Transaction Privilege Tax (TPT) licenses by January 1, 2026, to remain in compliance with state requirements. Licenses that are not renewed or canceled by January 31 will continue to accrue penalties.
The Arizona Department of Revenue (ADOR) recommends renewing online through AZTaxes.gov for faster processing. Businesses with multiple locations must complete the renewal electronically, as required by state law. ADOR has provided guidance and best practices on its website to help businesses reduce errors during the renewal process.
Remote sellers and marketplace facilitators who do not have a physical presence in Arizona but had more than $100,000 in gross sales to Arizona customers are also required to renew their TPT licenses. Those who did not meet this threshold may consider canceling their license for 2026.
Marijuana-related businesses must renew their TPT licenses annually but should not renew excise tax licenses.
After paying renewal fees, ADOR will mail license certificates to the address on file. Businesses are encouraged to verify and update mailing addresses before renewing. Companies that have closed must cancel their licenses to avoid further obligations, fees, and penalties.
For contractors, ADOR offers updated resources on its website explaining key definitions and differences between types of construction activities such as Maintenance, Repair, Replacement and Alteration (MRRA), and Modification. Contractors are encouraged to review these guidelines online.
Businesses should keep account information current, including owner or officer details used for caller authorization by ADOR representatives. Changes can be made using the Business Account Update form, with a tutorial available for assistance.
When filing TPT returns:
– A payment voucher (TPT-V) must accompany paper checks sent for e-filed or late returns.
– The correct tax rate must be applied according to business activity and jurisdiction; monthly updated tables are available on AZDOR.gov.
– Accounting credits are only granted if returns are filed and paid on time.
– Deduction codes must match business classifications; incorrect codes may result in disallowed deductions and potential penalties.
Key upcoming deadlines include December 22 for TPT return submission, December 30 for paper returns received by ADOR, and December 31 for electronic submissions via AZTaxes.gov.
Several local tax changes take effect soon:
– In Chino Valley, an ordinance increases the Manufactured Buildings classification tax rate from two percent to three percent starting November 1, 2025.
– Thatcher raises its transient lodging additional tax from three percent to five percent effective January 1, 2026.
– Phoenix adjusts its retail sales/use tax threshold under Proposition 104: from January 1, 2026 through December 31, 2027 the threshold increases from $13,886 to $14,338 per item.
– Holbrook raises hotel taxes from three percent to five percent starting January 1, 2026.
– Maricopa County voters approved an extension of the half-cent transportation excise tax through December 2045; there is no change in combined state/county rates as a result of this extension.
– Cave Creek increases hotel-related taxes from February 1, 2026: hotels move from three percent/four percent up to five percent depending on classification.
ADOR continues offering free workshops online covering topics such as business tax basics and common TPT errors. More information about sessions and tutorials is available at https://azdor.gov/taxpayer-education/tpt-tutorials.
