Our website will undergo routine system maintenance on May 10, 2025. While no major disruptions are expected, some services may be temporarily unavailable between 6:00 AM and 3:00PM.
Transaction Privilege and Use Tax Licenses
Phoenix, like other cities in Arizona, charges a sales tax on certain business activities, in addition to the state tax. While the City rate varies by business activity, it is 2.3% on most activities. If your business is involved in taxable activities, you need to get a transaction privilege (sales) tax license to report their Phoenix Transaction Privilege Tax (TPT) liability.
2024 threshold amounts for the Retail Sales and Use Tax two-level tax rate structures under the Comprehensive Transportation Plan effective January 1, 2024:
This important change affects retailers and businesses with Use Tax liability that engage in the retail sales or use of single items of tangible personal property, whose value exceeds the current threshold of $11,631. This change does NOT affect retailers or businesses with Use Tax liability that engage in the retail sales or use of single items of tangible personal property, whose value is equal to or below the current threshold of $11,631. It ONLY affects businesses with retail sales or use of single items of tangible personal property whose value is between $11,632 and the new threshold of $13,886.
Contact Information
If you're unsure about your business’s taxability, please contact our licensing section, as fees are non-refundable.
The Tax Compliance and Education division is located in the Calvin C. Goode Building at 251 West Washington Street, 3rd Floor, Phoenix, AZ 85003.
Hours of Operation: Monday through Friday, 8:00 a.m. to 5:00 p.m.
Contact us: Email us at tax@phoenix.gov.
Transaction Privilege Tax Licensing Questions
Revenue Enforcement Administration | 602-262-6785, option 4, then 3 |
Fax | 602-262-7786 |
Tax Audit-Related or Taxability Questions
Tax Audit | 602-262-6785, option 5 |
Fax | 602-534-1995 |
Collections Questions
Collections | 602-262-6785, option 6 |
Fax | 602-534-4241 |
Regulated Business Licensing Questions
Regulatory | 602-262-4638, option 4 |
Requirements for a Transaction Privilege and Use Tax License
See the list of requirements below to find out if your business needs a license for Phoenix’s transaction privilege and use tax.
-
Business Activities Listed
View the list of business activities subject to transaction privilege and use tax to determine if your business requires licensing for Phoenix.
-
Location of Business
Most business activities are taxed based on location. Use the State's online system to check your taxable area and tax rate.
-
License Fee Schedule
License fees are due 30 days after starting your business. The fee depends on your business activity in Phoenix. A 50% late fee applies if paid after 30 days.
-
Check business Tax Compliance before buying the business
Buyers may be responsible for the seller's taxes unless a Certificate of Compliance is obtained from the Arizona Department of Revenue.
-
Report Business Changes to the AZ dept of Revenue
Licensees must report any changes in business activity, location, or address to the Arizona Department of Revenue within 30 days.
-
Still have questions about licensing?
FAQs cover common licensing questions for both new and current businesses, including cancellations, account updates, ownership changes, and required forms.
-
Vending License
Get your vending license in Phoenix. Learn about requirements and apply.
-
Downtown Sidewalk Vending Program
Explore the Downtown Sidewalk Vending Program in Phoenix for licensing details and opportunities for vendors in vibrant urban spaces.