TPT 2026 Electronic Annual Estimated Tax Payment
Annual estimated tax payment of transaction privilege, telecommunications services excise, and county excise taxes are required if:
Combined tax liability for transaction privilege, telecommunications services excise, and county excise taxes in the preceding calendar year was $4,100,000 or more.
Deadline
The statutory due date for the annual estimated tax payment is June 22.
How do I calculate my payment?
There are two methods available to calculate your June estimated payment:
One half of the actual tax liability from the month of May, or
The actual tax liability from June 1 through June 15.
Electronic payments
Taxpayers required to pay electronically may be subject to penalties for payments made by check or cash.
To file and pay online, a business must be registered on AZTaxes.gov and use ACH debit, e-check, or credit card as a payment method to comply with electronic funds transfer (EFT) payment requirements.
Arizona Department of Revenue’s (ADOR) ACH Debit payment banking services are transitioning to JP Morgan Chase, tentatively scheduled for June 1, 2026. To ensure payments process as expected, please communicate ADOR’s updated Company ID to your bank: 9031897000.
Arizona Cash Transaction Rounding Law: Guidance for Businesses
Arizona businesses that do not use or have pennies available at the point of sale are now required to round cash transactions to the nearest 5 cents, following a new law signed by Governor Katie Hobbs. This legislative action, which took immediate effect on March 12, 2026, was taken primarily in response to the decreasing use and availability of the one-cent coin.
This rounding requirement applies exclusively to cash transactions where the seller is no longer using pennies. No rounding applies to transactions using a payment method other than cash; only exact amounts should be used on non-cash transactions.
This does not change how transaction privilege tax (TPT) is calculated, reported, or remitted. TPT returns must reflect gross receipts based on the full pre-rounding transaction amount—including all taxable items, fees, and charges—rather than the rounded cash amount paid by the customer. The amount rounded up or down is disregarded for TPT reporting purposes.
Enforcement of this law is administered by the Weights and Measures Services Division of the Arizona Department of Agriculture under A.R.S. Title 3, Chapter 19. The Division may issue warnings, orders, and civil penalties. For questions about the rounding requirements, contact the Department of Agriculture. For more information about TPT reporting on rounded transactions, go to the Arizona Penny-rounding Law web page.
Waste Tire Fee Increase
Businesses that sell new tires should be aware of upcoming changes to the fee imposed on the sale of new motor vehicle tires.
This includes:
New car and truck dealers.
Automotive parts stores that sell new motor vehicle tires.
Automobile repair and body shops that sell new motor vehicle tires.
Boat dealers that sell new trailers or new trailer tires.
Dealers of new golf carts or new golf cart tires.
Department stores with automotive departments that sell new motor vehicle tires.
Dealers of new heavy equipment that is operated on the roads.
Dealers of new mobile homes.
Dealers of new motorcycles.
Dealers of new RVs.
Dealers of new trailers that are used on the roads.
Truck stops that sell new motor vehicle tires.
Tire dealers that sell new motor vehicle tires.
Wholesalers who sell new motor vehicle tires to used motor vehicle dealers.
The current fees remain in effect through June 30, 2026:
The waste tire fee is 2% of the sales price of each new tire, up to a maximum of $4.66 per tire. All new tires sold as part of the sale of a new motor vehicle are subject to the fee, even if the vehicle is sold with specially-purchased tires.
For new tires sold with a new motor vehicle with a gross weight under 10,000 pounds, if the sales price of the tires is not separately stated, the fee is $2.33 per tire. If the price is separately stated, the waste tire fee is 2% of the sales price of each new tire, up to a maximum of $4.66 per tire.
For new tires sold with a new motor vehicle with a gross weight of 10,000 pounds or more, the fee is $4.66 per tire.
The new fees become effective on July 1, 2026:
The waste tire fee is 2% of the sales price of each new tire, up to a maximum of $4.73 per tire. All new tires sold as part of the sale of a new motor vehicle are subject to the fee, even if the vehicle is sold with specially-purchased tires.
For new tires sold with a new motor vehicle with a gross weight of 10,000 pounds or more, the fee is $4.73 per tire.
On July 1 each year, the fees will be adjusted based on a formula established by the Arizona Department of Environmental Quality pursuant to A.A.C. R18-13-2022.
The website and related forms will be updated to accommodate the new fee structure. Letters are being sent to businesses to notify them of the change and their obligation to update their point-of-sale systems to begin collecting and remitting the revised fee.
Businesses should update point-of-sale systems to account for the increased fee effective July 1, 2026. These fees should be remitted to the Arizona Department of Revenue on a quarterly basis by filing Form TR-1, Motor Vehicle Waste Tire Fee.
Late TPT License Renewal Billing Letters: Act Now to Avoid Penalties!
If your business has not yet renewed its Transaction Privilege Tax (TPT) License for 2026, now is a good time to take action. The Arizona Department of Revenue (ADOR) is issuing late renewal billing notices outlining any overdue renewal fees. You will receive one notice per license, regardless of your business location.
Time is critical! Businesses must act immediately to avoid additional penalties and delays in receiving the updated TPT License. While you can no longer renew on AZTaxes.gov, you can still submit the payment online.
Operating without a valid license may result in a Class 3 misdemeanor.
No Longer in Business? If you have closed, please cancel your TPT license through AZTaxes.gov or submit a Business Account Update form with the cancellation effective date. This action is essential to keep your account in good standing and avoid additional penalties and interest.
Keep Your Information Current: Ensure your mailing addresses and account details are up-to-date so ADOR letters, notices, and billings reach the correct location.
We strongly encourage all business owners to register and pay any outstanding renewal fees promptly on AZTaxes.gov.
For more information, visit ADOR’s Renewing a TPT License page.
ACH Debit Payment Banking Transition
In May, ADOR will be transitioning ACH Debit payment banking services to JP Morgan Chase. It will be important to note that users will need to communicate the new Company ID to their banks to ensure that all ACH debit transactions process as expected. The updated Company ID is 9031897000. Please work with your banks to ensure that when the transition occurs, you do not have any issues with your payments being processed.
TPT Filing and Paying
The following criteria determines which Arizona taxpayers must remit their taxes electronically:
Penalties:
Taxpayers required to file an electronic return will be subject to a penalty of 5% of the tax amount of payment due for filing a paper return. The minimum penalty is $25, including filings with zero liability.
Taxpayers required to pay electronically will be subject to a penalty of 5% of the amount of payment made by check or cash.
To file and pay online, a business must be registered on AZTaxes.gov and utilize ACH debit, e-check, or credit card as a payment method to comply with electronic funds transfer (EFT) payment requirements.
TPT Filing Facts
If your business location has closed indefinitely, you must cancel your license to avoid fees and penalties. Cancel your license on AZTaxes.gov or by completing a Business Account Update form.
After three unsuccessful attempts to log in to AZTaxes, wait 30 minutes and you will be able to try again.
Verify the city code and name of the city/town match. Also, make sure the deduction code matches the description.
Verify the business activity matches the business code. Also, be sure the region code and name of the region match.
Due Date Reminders
TPT Filing Frequency and Due Dates*- Monthly
TPT filers are reminded of the following April TPT filing deadlines:
May 20 - TPT return due date.
May 28 - Paper returns must be received at ADOR by this date.
May 29 - Electronic return filed in AZTaxes must be submitted before 11:59 p.m. on this date. Electronic payment made in AZTaxes must be submitted before 11:59 p.m. on this date.
*The electronic due date for TPT return is dependent on the return and payment being timely and filed electronically.
Tax Changes
Pima County - Effective Date of April 1, 2026
On March 10, 2026, the Pima County Transportation Excise Tax (Proposition 418-419) was voted on as part of a Special Election ballot. The measure, approved by Pima County voters, extends the existing one-half cent (0.5%) excise tax for 20 years through March 31, 2046. Because there is no change in the tax rate relative to the prior measure (expiring March 31, 2026), there is no impact on the combined state and county tax rates.
Town of Florence - Effective Date of July 1, 2026
On March 17, 2026 the Mayor and Council of the Town of Florence passed ordinance 780-26 providing an increased tax rate on multiple Privilege Tax business classifications and Use Tax from two percent (2%) to three and one-half percent (3.5%) and an increased rate on the Hotel/Motel (Additional Tax) from two percent (2%) to five percent (5%). Providing for Severability.
The (3.50%) affects the following business classifications:
Advertising (018); Amusement (012); Job Printing (010); Manufactured Buildings (027); Timbering and other Extraction (020); Publication (009); Hotels (044); Commercial, Rental, Leasing, and Licensing for Use (213); Rental, Leasing, and Licensing for Use of TPP (214); Restaurant and Bars (011); Retail Sales (017); MRRA Amount (315); Communications (005); Transporting (006); Utilities (004); Use Tax Purchases (029); Use Tax from Inventory (030).
Medical and Adult Use Marijuana:
Adult Use Marijuana Retail Sales (420); Medical Marijuana Retail Sales (203); Retail Sales (Accessories and Ancillary Products) (017); Use Tax Purchases (029); Use Tax From Inventory (030); Medical Marijuana Restaurant (221); Adult Use Marijuana Restaurant (421).
Remote Seller and Marketplace Facilitators:
Retail Sales (605); Marketplace Facilitators in AZ Third Party Sales (605); Marketplace Facilitators in Arizona Retail Sales (017).
The (5.00%) affects the following business classifications:
Hotel/Motel (Additional Tax) (144).
City of South Tucson - Effective Date of July 1, 2026
On April 21, 2026 the Mayor and Council of the City of South Tucson passed ordinance 26-01 decreasing retail sales – food for home consumption from one and one-half percent (1.5%) to zero percent (0.0%), and providing for Severability.
The (0.00%) affects the following business classifications:
Retail Sales Food for Home Consumption (062).
Remote Seller and Marketplace Facilitators:
Retail Sales Food for Home Consumption (606); Marketplace Facilitators in Arizona Retail Sales Food for Home Consumption (062); Marketplace Facilitators in Arizona Third Party Sales Food for Home Consumption (606).
Education, Tutorials and Training
All ADOR workshops are free of charge. Below are upcoming options available to taxpayers. To register or access online workshops, tutorials and resources, visit azdor.gov/taxpayer-education.
WORKSHOPS
Business Tax - (In-Person)
Town of Gilbert
Municipal Building I - Tower Room (Conference Room 146)
50 E Civic Center Dr
Gilbert, AZ 85296
Wednesday, May 20, 2026
10:00 a.m. - 1:00 p.m.
Business Tax - (Via WebEx)
Wednesday, May 20, 2026
1:00 p.m. – 4:00 p.m.
Tuesday, June 2, 2026
9:00 a.m. – noon
Common TPT Errors and How to Avoid Them - (Via WebEx)
Thursday, May 21, 2026
10:00 a.m. – 11:00 a.m.
Wednesday, June 3, 2026
10:00 a.m. – 11:00 a.m.
Automobile Dealer Business - (Via WebEx)
Thursday, May 28, 2026
9:00 a.m. – noon
ON-DEMAND TAX EDUCATION TUTORIALS: Please visit https://azdor.gov/taxpayer-education/tpt-tutorials
