Arizona Business Tax Filing Requirements — Everything You Need to Know
Understand your Arizona business filing needs — from corporate income tax to TPT and employer withholdings, stay compliant and avoid costly penalties.
What are the Business Tax Forms in Arizona?
Arizona requires different business entities to file specific state tax forms with the Arizona Department of Revenue (ADOR)..
Here’s a breakdown by business type:
Sole Proprietorship &
Single-Member LLC
- Form 140 – Arizona Individual Income Tax Return
- Federal Schedule C – Profit or Loss from Business
- Form 140 Schedule A (if applicable) - Itemized Deductions
Partnership & Multi-Member LLC
- Form 165 – Partnership Income Tax Return
- Schedule K-1 – Partner’s Share of Income, Deductions, and Credits
S Corporation
- Form 120S – S Corporation Income Tax Return
Transaction Privilege Tax (All Applicable Businesses)
- Form TPT-1 – Transaction Privilege Tax License Application
- Form TPT-2 – Transaction Privilege, Use, and Severance Tax Return
Employer Withholding Tax
- Form A1-QRT – Quarterly Withholding Tax Return
- Form A1-R – Annual Reconciliation of Arizona Income Tax Withheld
- Form A1-APR – Arizona Annual Payment Withholding Tax Return
Business Personal Property Tax
- Form 82520 – Business Personal Property Statement
Other Forms
- Form 285 – Power of Attorney (POA) / Disclosure
- Form 10193 – Business Account Update
What are the Deadlines for Business Tax Forms in Arizona?
Understand the key deadlines for filing Arizona business taxes for all entity types
C Corporations
Return due date:
15th day
of 4th month
- S Corporations
- Partnerships
Return due date:
15th day
of 3rd month
Transaction Privilege Tax
Return due date:
20th day
of the month
Employer Withholding Tax
Return due date:
- Quarterly Return (Form A1-QRT): last day of the month
- Annual Reconciliation (Form A1-R): January 31
Business Personal Property Tax
Return due date:
April 1
of each year (Filed with your County Assessor’s Office)
What are the Business Extension Forms are required in Arizona?
Business Type
- Corporation & S Corporation
- Partnerships & Multi-Member LLCs
- Individuals, Sole Proprietors & Single-Member LLCs
Mail Form 120EXT or Form 204 to:
Arizona Department of Revenue
PO Box 29085
Phoenix, AZ 85038-9085
Arizona business tax payments can also be made electronically through:
AZTaxes.gov – the official online portal for filing and payments.
What are the Extended due dates for Business Tax
Forms in Arizona?
C Corporations
7- month
of automatic extension
S Corporations
6-month
of automatic extension
Partnerships
6- month
of automatic extension
Transaction Privilege Tax
No formal extension
Employer Withholding Tax
No formal extension
Business Personal Property Tax
Varies by country
Arizona Business Tax Extension Filing Requirements
To qualify for a business tax extension in Arizona, your business must:
- File or pay by the original due date to avoid late filing and payment penalties.
- Submit the correct extension form based on your business entity type (Form 120 / 165EXT, Form 204).
- Estimate and pay any taxes owed — extensions apply only to filing, not to payments.
- Meet the 6-month filing extension period, typically extending your deadline from the original due date.
- Keep confirmation and payment records from the Arizona Department of Revenue (ADOR) for compliance purposes.
Arizona Business Tax Rates
Business tax rates in Arizona vary based on your entity type:
C Corporation
4.9%
of Arizona taxable income (flat corporate income tax rate effective from 2023).
S Corporation
Pass Through Entity
Generally, not subject to corporate income tax; income passes through to shareholders and is taxed on their individual returns.
Partnerships & LLCs
Pass Through Entity
Not taxed at the entity level. Members report income on their individual or corporate tax returns.
Transaction Privilege Tax
Varies by business activity and location
State base rate: 5.6%, plus applicable city and county rates.
Employer Withholding Tax
Rates vary based on employee income and Arizona withholding tables provided by ADOR.
Financial Institution
4.9%
of net income earned in Arizona (same as the corporate income tax rate).
Estimated Tax Payments for Arizona Businesses
Businesses in Arizona must make estimated tax payments if they expect to owe $1,000 or more in
state income tax for the year. These prepayments help avoid underpayment penalties and interest.
Payment Deadlines
1st payment
April 15
2nd payment
June 15
3rd Payment
Sept 15
4th Payment
Dec 15
Who should pay
Corporations & Financial Institutions
If Arizona tax liability is expected to be $1,000 or more,use Form 120W for estimated payments.
S Corporations (PTE Election)
If the business elects to pay tax at the entity level and expects to owe over $500, use Form 120ES.
Partnerships (PTE Election)
Partnerships making the PTE election must pay estimated taxes using Form 165ES.
LLCs
LLCs follow the rules of their tax classification (C Corp, S Corp, or Partnership)
Missed Payments: Late or missed estimated payments may result in interest charges and penalties from the Arizona Department of Revenue (ADOR).
Penalties and Interest for Business in Arizona
If your business doesn’t pay the required tax by the original due date,
penalties and interest may apply—even if you’ve filed an extension.
Late Payment Penalty
0.5% of the unpaid tax for each month (or part of a month) the payment is late, up to a maximum of 10%.
Late Filing Penalty
4.5% of the unpaid tax per month (or part of a month) past due, up to a maximum of 25% of the unpaid amount.
Interest
- Charged daily on any unpaid balance from the original due date until fully paid.
- Interest rate: federal short-term rate plus 3%, adjusted annually.
How TaxZerone Can Help You?
TaxZerone helps you with federal filing and guides you in meeting all your state tax requirements, ensuring compliance and minimizing the risk of penalties and interest.
Stay Compliant with Arizona Business Tax Requirements!
Let TaxZerone guide you through all federal and Arizona state business tax filings,
ensuring you meet deadlines, calculate payments correctly, and avoid penalties.
Frequently Asked Questions
1. What business taxes do I need to pay in Arizona?
- Corporate Income Tax (C corporations)
- S Corporation / Pass-Through Entity Tax
- Partnership / LLC Income Tax (if elected PTE)
- Transaction Privilege Tax (TPT)
- Employer Withholding Tax
- Business Personal Property Tax
- The taxes applicable depend on your business entity type and operations.
2. Does Arizona automatically grant extensions for businesses?
3. How do I get an extension of time to file in Arizona?
- C Corporations & S Corporations: Form 120/165EXT
- Partnerships & Multi-Member LLCs: Form 120/165EXT
- Sole Proprietors & Single-Member LLCs: Form 204
4. What happens if I don’t pay my taxes by the original due date in Arizona?
If taxes are not paid on time, your business may incur penalties and interest. Penalties can apply for both late payments and late filings, and interest is charged on any unpaid balance until the taxes are fully paid
