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The Daily Insight

Does Arizona tax Professional Services?

Author

Mia Ramsey

Published Apr 02, 2026

Are services subject to sales tax in Arizona? The state of Arizona does not generally collect sales taxes on the vast majority of services performed.

What do Arizona taxes pay for?

No. While all families in Arizona help pay for health, education and public safety through state and local taxes, low-income and middle-income families pay a larger portion of their income in taxes than do wealthier families after accounting for deductions and credits.

What kind of taxes do you pay in Arizona?

The Tax Handbook includes tables that provide the estimated impact of tax credits and exemptions to the Sales Tax, Individual Income Tax, Corporate Income Tax, and Insurance Premium Tax sections. These tables were prepared by the Office of Economic Research and Analysis at the Arizona Department of Revenue.

Do you have to pay estate tax in Arizona?

The federal estate tax still applies to Arizona residents, however. In the U.S., there are only 12 states, plus the District of Columbia, that currently have an estate tax. Only six U.S. states have an inheritance tax. Out of those states, Maryland is the only one in the nation that has both an estate and inheritance tax.

How to make a payment to the IRS in Arizona?

Electronic payments can be made using AZTaxes.gov under the “Make a Payment” link. Taxpayers who filed an extension with the Internal Revenue Service do not have to do so with the state, but they must check the Filing Under Extension box 82F on the Arizona tax returns when they file.

How does TPT work in the state of Arizona?

Although TPT is commonly referred to as Arizona’s sales tax, it differs from the “true” sales tax imposed by many other states as it is imposed upon the seller rather than the buyer of the taxable item. Although the seller may pass the burden of the tax onto the buyer, the seller is the party that remains ultimately liable to the state for the tax.