Arizona TPT Penalties 2026
Arizona imposes penalties for TPT non-compliance. Understanding these helps you maintain good standing with ADOR.
Penalty Summary
- • Late filing: 4.5% per month, up to 25%
- • Late payment: 0.5% per month, up to 10%
- • Failure to register: $100-$500 per month
- • Interest: Set by ADOR
Late Filing Penalty
If you file your Arizona TPT return late, you'll face a penalty of 4.5% of the tax due for each month (or partial month) the return is late, up to a maximum of 25%.
Late Payment Penalty
If you pay late, the penalty is 0.5% of the unpaid tax per month, up to 10%. Both penalties can stack if you file and pay late.
Failure to Register
Operating without a TPT license when required can result in penalties of $100-$500 per month, plus the full amount of tax that should have been collected, plus interest.
Interest
Interest accrues on unpaid TPT from the original due date at a rate set by the Arizona Department of Revenue.
How to Avoid Penalties
- Register promptly when you establish nexus
- File returns by the 20th of each month
- Pay in full with each return
- Use the correct rates for each Arizona city
Frequently Asked Questions
The late filing penalty is 4.5% per month up to a maximum of 25% of the tax due.
Related Guides
Last Updated: January 15, 2026
Disclaimer: This information is provided for educational and informational purposes only and does not constitute tax, legal, or financial advice. Tax laws and regulations change frequently. While we strive to keep this information accurate and up-to-date, we make no representations or warranties of any kind about the completeness, accuracy, reliability, or suitability of this information. Please consult with a qualified tax professional or attorney for advice specific to your business situation. Always verify current requirements with the official state tax authority.