Local Taxes & Fees in Tempe, AZ (2026)
1 verified local taxes & fees rules for Tempe, Arizona, sourced directly from the municipal code and official government pages.
Verified from official government sources
Business Tax Classification
Tempe taxes local businesses under a privilege (sales) tax system in Chapter 16 that sorts gross income into specific classifications, from advertising and amusements to retail sales and hotels, each carrying its own rate. Most classifications run 1.8%, and every dollar of gross income is presumed taxable unless the business proves otherwise.
Tempe Business Privilege Tax Classes
Some RestrictionsTempe City Code § 16-400(a), (c)
(a)There are hereby levied and imposed, subject to all other provisions of this chapter, the following Privilege Taxes for the purpose of raising revenue to be used in defraying the necessary expenses of the City, such taxes to be collected by the Tax Collector:(1)A Privilege Tax upon persons on account of their business activities, to the extent provided elsewhere in this article, to be measur...
Looking for Maricopa County county-wide rules?
County ordinances apply to unincorporated areas and may supplement Tempe city rules.
Local Taxes & Fees in Maricopa County →