Construction Contract Cost Plus Withholding Tax In Maricopa
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Businesses that perform the following activities are subject to TPT and must be licensed. retail sales. restaurants/bars. hotel/motel (transient lodging) commercial lease. amusements. personal property rentals. contracting. severance (metal mining)
The State of Arizona sales tax rate for retail purchases is 5.6%. Maricopa County adds 0.7% sales tax to support roads and jails. In addition, each city may add sales tax.
A total Transaction Privilege (Sales) Tax rate of 8.35%, (6.35% State and County, 2.00% Prescott), is imposed on the gross income of any person engaging in Construction Contracting. If tax has been neither separately charged nor separately collected, factoring of tax is allowed in computing taxable income.
Generally, Arizona imposes a sales tax on services if they are considered to be tangible personal property repair, replacement, or maintenance services. For example, car repair, furniture cleaning, and tangible goods warranties are taxable services. However, not all services are subject to sales tax in Arizona.
Maricopa sales tax details The minimum combined 2025 sales tax rate for Maricopa, Arizona is 8.7%. This is the total of state, county, and city sales tax rates. The Arizona sales tax rate is currently 5.6%. The Maricopa sales tax rate is 2.0%.
The transaction privilege tax (TPT) is commonly referred to as sales tax. It is, however, the tax on the privilege of doing business in Arizona and is not a true sales tax. The seller is liable for the tax but may pass the burden of the tax on to the purchaser.
There is no real estate transfer tax in Arizona. That's thanks to Proposition 100, which was signed into law in 2009. That doesn't mean you won't owe any taxes if you sell your home. There are federal taxes that apply to capital gains.
Maintenance, Repair, Replacement and Alteration construction activities, collectively referred to as MRRA activities, are specifically excluded from the prime contracting classification. MRRA activities entail contracting activities on existing property.
Arizona also has a 5.6 percent state sales tax rate and an average combined state and local sales tax rate of 8.38 percent. Arizona has a 0.45 percent effective property tax rate on owner-occupied housing value. Arizona does not have an estate tax or inheritance tax.
