Similar to other cities in Arizona and the State of Arizona, Phoenix imposes a transaction privilege sales tax on certain business activities. The City tax is in addition to the tax imposed by the State. While the City rate varies by business activity, it is two percent (2.0%) on most activities. A business engaged in taxable activity will need to obtain a transaction privilege sales tax license with Phoenix.
City of Phoenix Tax Division
Below are several links that will give you the information you need to know about the Tax Division.
LicensingTax ReturnStatementFormsTax CodeGeneralContact Us
Did You Know
Phoenix now offers free on-line filing of sales tax returns and payments. To sign up for electronic filing and go green, please click below. For a free tax seminar, Click Here.
List of Business Activities
Gross receipts generated from the following types of business activities are subject to the Phoenix privilege sales tax. For more information, see Chapter 14 of the Phoenix City Code or click a link below.
Rental, leasing, and licensing for use of real property – §14-445, §14-446
-the leasing, licensing for use or renting of any real property within the City. Included as real property are land, rights-of-way, commercial building(s), office space, storage facilities, apartments, homes or other residential units, and etc. This classification includes commercial/ST Code 13 and residential/ST Code 18 rental. See the Quick Fact Sheet for Residential Property Rentals for more information.
Chapter 14 – Article IV. Privilege Taxes
14-440. Rental occupancy.
14-445. Rental, leasing, and licensing for use of real property.
14-445.1. When the rental, leasing, and licensing of real property is exempt as “casual.”
14-446. Additional tax on nonresidential rental business activity.
