Articles on: Accounts & Payments

Arizona Transaction Privilege Tax

For an overview of state sales tax, please view our article TicketSource and Sales Tax.


Sales tax will apply to this state from December 2, 2025


  1. Overview
  2. If you’ve been collecting taxes in Arizona – online sales through TicketSource payment processing
  3. If you’ve been collecting taxes in Arizona – online sales through Stripe payment processing
  4. If you are tax-exempt


Overview


For events in the U.S. state of Arizona, TicketSource is required to charge the attendee transaction privilege tax (TPT) on the attendee's booking (tickets, sundry sales, and booking fee). You can find information on the current TPT percentage for Arizona here: https://www.avalara.com/taxrates/en/state-rates.html


By using TicketSource and agreeing to its terms of use, event organizers authorize TicketSource to collect and remit taxes on your online ticket sales in States where TicketSource is legally required to do so. It remains the event organizer's responsibility to understand their tax obligations.


If you’ve been collecting taxes in Arizona – online sales through TicketSource payment processing


You should no longer collect and remit the transaction privilege tax for your online sales related to Arizona-based events.  TicketSource is now responsible for collecting and remitting this tax.  Please note that you will still be responsible for any applicable TPT on direct sales (sales not processed online through TicketSource or when using your own merchant services).  Please refer to our Sales Tax Guidance for additional information.

 

If you’ve been collecting taxes in Arizona – online sales through Stripe payment processing


TicketSource will collect and remit the TPT on the booking fee for your online sales related to Arizona-based events. You will remain responsible for any applicable TPT on your online ticket sales (excluding the booking fee) or direct sales (sales not processed online through TicketSource or when using your own merchant services).  Please refer to our Sales Tax Guidance for additional information.


If you are tax-exempt


The following organizations may be exempt from sales tax on your bookings:


  • Religious and educational institutions
  • A musical, dramatic or dance group or botanical garden, museum or zoo that has qualified for tax-exempt status as a 501(c)(3) by the IRS
  • A nonprofit organization selling admissions to intercollegiate football contests and that is exempt from tax under Section 501(c)(3) of the Internal Revenue Code


Further information on exemptions can be found at https://azdor.gov/sites/default/files/2023-03/PROCEDURES_TPT_2000_tpp00-4.pdf


If you believe you are exempt under Arizona Statute, please complete the tax exemption declaration in your TicketSource account from late November (please check back on this article in late November for guidance).


If you declare a tax exemption, we may contact you and request that you provide the following documents:


  • IRS Determination letter confirming status as a 501(c)(3)


As stipulated by the state, delays in providing this evidence may result in TPT being charged until suitable documentation is provided.

For further information, please visit the Arizona Department of Revenue https://azdor.gov/business/transaction-privilege-tax

Updated on: 28/11/2025