Businesses in Arizona were required to renew their Transaction Privilege Tax (TPT) licenses with the Arizona Department of Revenue (ADOR) by January 1, 2026. Those who missed the deadline and renewed after January 31, 2026, are subject to penalties and late fees. If a business fails to pay the renewal fee on time, ADOR will send a bill that includes unpaid renewal fees and penalties equal to 50% of the city renewal fee. Licenses will only be mailed once all fees are paid.
The department encourages businesses to use AZTaxes.gov for online filing, payment, and renewal as it is faster and state law requires electronic renewals for taxpayers with multiple locations. Remote sellers and marketplace facilitators without a physical presence in Arizona but with more than $100,000 in gross sales to Arizona customers must also renew their TPT licenses. Businesses below this threshold may consider canceling their license for 2026.
Marijuana-related businesses are reminded not to renew their excise tax license but must continue renewing their TPT license annually. After paying all renewal fees, ADOR will mail the TPT License Certificate to the address on file; businesses should verify or update this address before renewing.
Businesses that have closed must cancel their license to avoid further obligations or penalties. This helps maintain good account standing.
ADOR is holding its annual public auction of unclaimed property items from February 18 through February 22, 2026. The auction features contents from abandoned safe deposit boxes such as jewelry, coins, currency, and collectibles. Proceeds go into a custodial account for rightful owners to claim later. Sierra Auction Management, Inc., is conducting the auction at www.sierraauction.com. Items can be viewed in person on February 20 at 4298 N. 35th Drive in Phoenix between 9:00 a.m. and 3:00 p.m.
Unclaimed property from safe deposit boxes represents only part of what ADOR holds until owners claim it. More information about unclaimed assets can be found at https://azdor.gov/unclaimed-property.
Electronic filing is mandatory for TPT filers whose annual total tax liability is $500 or more. Filing frequency depends on estimated annual combined state, county, and municipal liability: less than $2,000 files annually; $2,000–$8,000 files quarterly; over $8,000 files monthly. To change filing frequency due to changes in liability amounts, businesses must submit Form 10193 by mail if they have no delinquencies.
E-filing offers benefits including increased security and faster processing times while reducing errors.
Taxpayers are advised to keep passwords and PINs secure; password resets are required every 90 days and e-signature PIN resets take up to one day.
Key deadlines for January TPT filings include:
– February 20: Return due date
– February 26: Paper returns must be received by ADOR
– February 27: Electronic returns must be submitted via AZTaxes.gov before midnight
Several tax rate changes take effect in early 2026:
– In Thatcher (effective January 1), transient lodging additional tax increases from three percent to five percent.
– In Phoenix (effective January 1), inflation adjustments raise the retail sales/use tax two-level structure threshold from $13,886 to $14,338 per item.
– In Holbrook (effective January 1), hotel taxes rise from three percent/four percent additional tax rates up to five percent each.
– Maricopa County voters approved an extension of the existing half-cent transportation excise tax through December 2045; there is no change in overall rates.
– Cave Creek (effective February 1) raises hotel taxes from three/four percent up to five percent.
– Tucson (effective March 1) enacts several changes:
– Public utility taxes increase from four-and-a-half percent up to five percent,
– Occupational License Tax Rate for transient non-hotel rentals set at ten percent,
– Hotel occupational license rate rises from six percent up to nine percent,
– Bed surtax eliminated ($4 per night reduced to zero).
ADOR continues offering free workshops both online via WebEx and in-person across several cities including Gilbert, Peoria, and Tempe throughout February and March 2026. On-demand tutorials are available at https://azdor.gov/taxpayer-education/tpt-tutorials.
