Arizona sales tax for contractors
What we found on official Arizona government pages about sales tax and tax setup for contractors. Each line shows its source and the date it was read. This is general information, not tax or legal advice. Rules change: verify with your CPA before you rely on any of it.
State sales tax rate
TPT state rate 5.6% for Retail (017) and Prime Contracting (015) in the 10/1/2026 rate table; no scheduled state change seen
Source: https://azdor.gov/sites/default/files/document/TPT_RATETABLE_10012026.pdf. Last verified 2026-11-02.
How contractors are taxed
prime contractor holds TPT license, reports gross receipts (prime contracting taxed on 65% of receipts for modification/new work), no deduction for sub payments; licensed contractors buy materials tax-free with Form 5000 on modification projects
Source: https://azdor.gov/transaction-privilege-tax/contracting-guidelines/contracting-faqs. Last verified 2026-11-02.
Certificates and forms
Form 5000 (licensed contractor materials), 5005 (prime-to-sub responsibility), 5009L (unlicensed sub, modification), 5000M (unlicensed, statutory exempt materials)
Source: https://azdor.gov/transaction-privilege-tax/contracting-guidelines/contracting-faqs. Last verified 2026-11-02.
What this page does not cover
Local taxes, special districts, and any detail we could not confirm on an official page are left out on purpose. Confirm current rates, forms and due dates with the state agency and your CPA.
How BossHours helps
BossHours keeps your quotes, invoices and job records in one place so your accountant has what they need at filing time. It does not give tax or legal advice.
See also the contractor guides and free tools.
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