Arizona

The Arizona (AZ) state sales tax rate is currently 5.6%. Depending on local municipalities, the total tax rate can be as high as 10.7%.

Arizona has a Transaction Privilege Tax (TPT) which is commonly referred to as a sales tax. Counties and cities can also impose a TPT on businesses in their jurisdiction. A TPT is actually a tax on the vendor but the tax is generally passed on to the consumer.

Arizona has a mix of jurisdictions to deal with when managing sales and use taxes. Some cities and counties collect their own tax; some allow the state to collect for them. A complete list can be found at the Arizona Department of Revenue website.

Arizona does not tax food for home consumption or drugs obtained with a valid prescription from an authorized professional.

Arizona has a use tax.

Amazon.com owns and operates fulfillment centers in Arizona. This physical presence or nexus creates a sales tax obligation for Amazon and many sellers participating in Amazon’s Seller Central and Fulfillment by Amazon (FBA) programs.

Little known fact: in the early 1900s, Arizona was one of about a dozen states to use sales tax tokens.

 

Avalara Sales and Use Tax Products for Arizona

AvaTax – AvaTax is a powerful, online sales tax compliance solution that provides all businesses with a level of sales tax automation that until now has been available only to Fortune 500 companies. AvaTax’s transaction-based service model and seamless integration into business applications gives you rapid access to all jurisdiction assignments and real-time sales tax calculations. Cutting-edge technologies and superior processing logic can manage even the most complicated tax issues, such as situs, nexus, tax tiers, tax holidays, exemptions, certificate management and product taxability rules.

TrustFile - Avalara TrustFile provides detailed sales tax reporting for online sellers. Allowing businesses to know exactly where, when and how much to file. Ecommerce business owners can use TrustFile to determine whether or not they are collecting the right amount of sales tax in each individual state, and then store a record of their sales tax history securely in the cloud for free.

Arizona Department of Revenue