Arizona · Flat income tax, TPT
CPA, bookkeeping & fractional CFO services in Arizona
Arizona has a flat personal income tax and a transaction privilege tax, which works like a sales tax but is charged to the business on gross receipts from taxable activities. CPA Torrance is a CPA-led firm based in Torrance, California that provides bookkeeping, tax planning, tax filing and fractional CFO support to Arizona businesses remotely.
- Serving all of Arizona remotely
- Arizona TPT returns tracked for you
- Monthly reporting included
In short
How does the Arizona transaction privilege tax work?
Arizona does not have a traditional sales tax. Instead, businesses pay a transaction privilege tax on gross receipts from taxable activities like retail sales, restaurants, construction contracting and rentals. Businesses usually pass the cost on to customers, and they file TPT returns that cover state, county and city rates. Arizona also has a flat personal income tax.
- State income tax
- Flat rate
- State sales tax
- 5.6% TPT + city and county
- Key business tax
- Transaction privilege tax
- How we serve
- Remotely, statewide
Services in Arizona
What we do for Arizona business owners
From Phoenix and Scottsdale professional firms to Tucson manufacturers and East Valley contractors, Arizona businesses are growing fast and need books that keep pace. We provide monthly bookkeeping, federal and Arizona tax planning, filings and CFO reporting from one coordinated team.
Bookkeeping Services
- Monthly reconciliations in QuickBooks Online
- Arizona transaction privilege tax tracking by city
- Payroll and contractor payment review
- Monthly profit and loss and balance sheet
- Catch-up and clean-up bookkeeping
Tax Planning & Strategy
- Entity and S corporation review
- Arizona PTE election review
- Federal and state estimated payments
- Multi-state income review
- Year-end tax planning meeting
Tax Filing & Compliance
- Federal business returns (1120, 1120S, 1065)
- Arizona Form 120, 120S, 165 and TPT returns
- Owner individual returns
- IRS and state notice help
- Due-date tracking for every filing
Fractional CFO Services
- Cash-flow forecasts
- Budget versus actual reviews
- Margin and pricing analysis
- Lender- and investor-ready reporting
- Growth and hiring plans
Arizona tax planning
Planning around Arizona taxes
Arizona planning combines the flat income tax, the TPT on your business activities and federal planning around entity type and owner pay.
Book a 15-min callTPT by activity and city
TPT rates and rules depend on your business class and city. We set up your books to report each correctly.
Contractor TPT
Prime contracting and speculative building have their own TPT rules. We help contractors stay compliant.
Pass-through election
Arizona offers a pass-through entity tax election. We model whether it lowers your total tax.
Who we work with
Arizona industries we serve
We work with owner-led businesses across Arizona, with experience in the industries that drive the state economy.
Construction
Contractors with job costing and contracting TPT.
Real estate
Rental owners with residential and commercial rental TPT.
Healthcare practices
Medical and dental practices across the Valley.
Manufacturing and tech
Semiconductor suppliers and engineering firms.
E-commerce sellers
Online brands with Arizona sales tax, inventory and multi-channel books.
Professional firms
Consultants, agencies and law firms billing by the hour, project or retainer.
Why Arizona businesses choose CPA Torrance
Areas we cover
Serving businesses across Arizona
Businesses in Phoenix, Tucson, Mesa, Scottsdale, Chandler work in semiconductors, real estate, healthcare, construction and tourism. CPA Torrance helps Arizona businesses, including those owned from out of state, stay compliant and organized through remote meetings.
- Phoenix
- Tucson
- Mesa
- Scottsdale
- Chandler
- Gilbert
- Tempe
- Glendale
- Peoria
- Flagstaff
- Video meetings on your schedule
- Secure document portal for statements and returns
- Cloud accounting you can see any time
FAQ
Arizona business tax and accounting questions
Not covered here? A 15-minute call gets you a straight answer for your situation.
What financial services can CPA Torrance provide to Arizona businesses?
We provide monthly bookkeeping, federal and Arizona tax planning, business tax filing and fractional CFO services. Everything runs from one set of books, so your bookkeeper, CPA and CFO advisor work from the same numbers.
Is TPT the same as sales tax?
Not exactly. TPT is a tax on the business for the privilege of doing business in Arizona, measured by gross receipts. In practice it is usually passed to customers, but the business is responsible for it.
Do Arizona rental properties owe TPT?
Commercial rentals generally do. Rules for residential rentals have changed in recent years, so we check the current rules for each property.
Does Arizona tax my business income?
Pass-through income flows to owners and is taxed at the flat personal rate. C corporations pay Arizona corporate income tax.
Can CPA Torrance work with Arizona businesses remotely?
Yes. We serve businesses across Arizona, including Phoenix, Tucson, Mesa, Scottsdale, Chandler, Gilbert, Tempe, Glendale, Peoria and Flagstaff, through video meetings, a secure document portal and cloud accounting you can see any time. Our office is in Torrance, California.
How do I get started?
Book a 15-minute call or request a free financial assessment. We review your books, tax position and systems and recommend the right mix of support for your Arizona business.
Get your Arizona books and taxes in order.
Book a call to review bookkeeping and tax planning for your Arizona business.