Agreement Commercial Property With Sale With Rental Income In Arizona
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Please note: An Arizona full-year resident is subject to tax on all income, including earnings from another state. Arizona will also tax retirement from another state. Residents are taxed on the same income they report for federal income tax purposes, subject only to the specific modifications allowed under state law.
Effective January 1, 2025, Arizona property owners will no longer be required to collect and remit city Transaction Privilege Tax (TPT) on residential rental income for long-term stays of 30 consecutive days or more.
Individual owners of taxable rental properties are required by law to obtain a TPT license with ADOR regardless if the owners rent the property themselves or employ a property management company (PMC). A license is only required for cities that impose a tax on residential rental activity.
Currently, there is no state or county tax imposed on residential rentals. Therefore, Arizona cities are not be able to impose a tax on residential rentals from and after December 31, 2024.
Residential rental property must be registered with the County Assessor ing to Arizona law (A.R.S. § 33-1902). The intent of this law is to maintain an accurate record of rental properties so that towns, cities and the county can enforce laws about slums and blight in rental properties.
Phoenix, AZ—The Arizona Department of Revenue (ADOR) announces the elimination of transaction privilege tax (TPT) applicable to the rental of real estate for residential purposes (residential rental) as of January 1, 2025.
Arizona. Taxes capital gains at the same rate as income, a flat 2.5%.