Businesses in Arizona are reminded by the Arizona Department of Revenue (ADOR) that they must renew their Transaction Privilege Tax (TPT) licenses for 2026. Renewals were due by January 1, 2026, and late submissions after January 31 will incur penalties and fees. ADOR has clarified that businesses failing to pay renewal fees on time will receive a bill for unpaid amounts plus a penalty equal to half the city renewal fee. Licenses will not be mailed until all fees are paid.
The TPT license is necessary for collecting and remitting taxes at state, county, and city levels. Businesses with multiple locations are required by law to renew electronically through AZTaxes.gov, which is also recommended as the fastest method.
Remote sellers and marketplace facilitators with more than $100,000 in gross sales to Arizona customers must renew their TPT licenses. Those below this threshold may consider canceling their license for 2026. Marijuana-related businesses are reminded they need to renew their TPT license annually but should not renew excise tax licenses.
For those closing operations, ADOR advises cancelling the business license to avoid future obligations or penalties.
In February, ADOR will conduct its annual unclaimed property auction via Sierra Auction Management, Inc., from February 18–22. The auction includes items such as jewelry and coins from abandoned safe deposit boxes. Proceeds remain available for rightful owners to claim later; more information can be found at https://azdor.gov/unclaimed-property.
Taxpayers with an annual total tax liability of $500 or more must file TPT returns electronically according to state requirements. Filing frequency—annually, quarterly, or monthly—is based on estimated annual combined liabilities across state and local jurisdictions; changes require submitting Form 10193 by mail if eligibility thresholds are met.
E-filing is promoted as a secure option offering faster processing and fewer errors compared to paper filings. Common mistakes include sending duplicate returns or incorrect forms and using non-standard ink colors.
To maintain good standing, businesses should keep account information current on AZTaxes.gov and ensure timely filing—even if reporting zero activity during temporary closures.
Several municipalities have announced changes effective in early 2026:
– The Town of Thatcher will increase its transient lodging additional tax from three percent to five percent.
– The City of Phoenix will adjust its retail sales/use tax threshold amount from $13,886 to $14,338 for the next two years.
– Holbrook will raise hotel-related transaction privilege taxes from three/four percent up to five percent.
– Maricopa County voters approved extending the existing half-cent transportation excise tax through December 2045; there is no change in rates.
– Cave Creek’s hotel-related taxes rise from three/four percent up to five percent starting February.
– Tucson’s new ordinances include increases in public utility taxes (from four-and-a-half percent up to five), a new ten-percent occupational license tax rate for certain short-term rentals not classified as hotels under property taxation statutes, raising hotel occupational taxes from six percent up to nine percent while eliminating a per-night bed surtax.
ADOR continues offering free taxpayer education workshops online covering business basics and common filing errors; schedules are available at azdor.gov/taxpayer-education.
