Arizona’s Transaction Privilege Tax (TPT)

Information for short-term rental hosts

All short-term rental owners in Arizona are required to hold a TPT license (Transaction Privilege Tax) in order to operate. 

SEE TPT FAQs BELOW

MEMBER EXCLUSIVE: ACCESS AZRT'S DETAILED TPT GUIDE

AZRT’s detailed guide to TPT will walk you through getting your TPT license, filing your taxes, and more.

This guide is exclusive to AZRT members. Join today or log in to access.

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TRANSACTION PRIVILEGE TAX (TPT)

FREQUENTLY ASKED QUESTIONS

Do I need a TPT License if the platforms collect and remit taxes on my behalf? 

In the state of AZ, by law, you need to have a TPT license if you are operating a short-term rental (home share, whole house, any type), and you need to file even though the platforms may be paying the tax to the state/county/city. Your filing helps allocate platform funds to your specific TPT license number.

 

How do I apply for a TPT License?

Apply for a state TPT license with AZDOR here. For additional information:

  • Recommended accountant to hire for TPT filing: Crystal Garcia, CG Accounting Solutions, 928-899-1056

 

How do I file my TPT?

  • Recommended accountant to hire for TPT filing: Crystal Garcia, CG Accounting Solutions, 928-899-1056

 

Does Airbnb or Vrbo automatically file our TPT returns for us? 

By law, the online lodging marketplaces are supposed to collect and remit taxes. By law, hosts/owners are still required to file the TPT returns stating that the platform remitted the taxes essentially filing a zero return. 

 

How do you handle TPT for a rental less than 30 days when the guest extends to more than 30 days? 

This would still be taxed as a short-term stay. 

 

What is required for medium-term rentals greater than 30 nights?

Short-term rental regulations do not apply to rentals greater than 30 nights. You do need a TPT license for long-term rentals along with filing sales tax if your jurisdiction taxes long-term rentals (check your jurisdiction requirements.)

 

How do I make sure someone renting for 30 days or more doesn’t get charged the short-term rental taxes?  

If booking on the platforms, they will tax according to the duration of stay. I.e. more than 30 days will be taxed according to long-term rental. 

 

If booking off-platform, follow the steps outlined in our step-by-step guide to TPT in our member portal here, which goes over both short-term and long-term stays. Join or log in as a member to access this guide.

 

How do you calculate your gross revenues?

Refer to our TPT Webinar Replay here or access our step-by-step guide to TPT in our member portal here. Join or log in as a member to access today!

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