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      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.

      View the Tax Bulletin for more information

      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: Em​ail 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

      FAQ

      See the list of requirements below to find out if your business needs a license for Phoenix’s transaction privilege and use tax.

      FAQ