Arizona Tax Filing Requirements
Residents, part-year residents, and nonresidents must file if:
- Single, Married Filing Separate, Head of Household and AZ AGI is at least: $ 5,500, or gross income is at least: $15,000
- Married Filing Joint and AZ AGI is at least: $11,000, or gross income is at least: $15,000
- Individual Return Due Date: April 15th
- Corporate Return Due Date: April 15th
- S-Corporation/Partnership/LLC: March 15th
- Transaction Privilege Tax: If filing electronically, due monthly on the last day of each month. Must be filed even if no tax due. Payment should be made on the business prior to the last day of the month to ensure timely processing
Taxpayers must pay at least 90% of tax liability to avoid an extension underpayment penalty.
- To receive an automatic extension to October 15, file Form 204, Application for Filing Extension.
- Arizona will also accept the federal extension for the period covered by the federal extension.
Residential rental properties are subject to additional tax, known as transaction privilege tax (TPT), and imposed when engaged in business under the residential rental classification by the Model City Tax Code. Some cities, not all, opt to tax residential rental income.
Every residential rental property owner with taxable rental property is required to obtain an Arizona transaction privilege tax license from the Arizona Department of Revenue for each location where residential rental income is taxable. This applies regardless if the owner rents the property themselves or employs a property management company. More information here. Starting with the January 2018 reporting period, property management companies will no longer be permitted to report and remit transaction privilege tax using their own TPT license on behalf of client property owners. All rent taxes must be filed and remitted using the property owner’s TPT licenses.
TPT is imposed when renters or property management companies engage in business under the residential rental classification by the Model City Tax Code. To determine if a city tax license is required, taxpayers can use the Residential Rental Licensing Matrix.
All payments made by a tenant, or on behalf of a landlord, are taxable. Please see the list below, and note that it is not inclusive.
Common Income Sources
- Non-refundable and forfeited deposits
- Late payment fees
- Pet fees
- Federal rent subsidies (HUD)
Fees Passed on to Tenant
- Common area fees
- Maintenance charges
- Homeowner association fees
- Landscaper maintenance
- Property tax
- Pool Service
- Repairs and/or improvements
S-Corporations. Arizona recognizes the federal S-Corporation election.