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Arizona Rental Tax Law Changes Effective January 1, 2025: What Landlords Need to Know

Arizona Rental Tax Law Changes Effective January 1, 2025: What Landlords Need to Know

Starting January 1, 2025, Arizona has eliminated the Transaction Privilege Tax (TPT) on long-term residential rentals (30+ days). This significant change impacts landlords, property investors, and tenants, removing the obligation for property owners to collect and remit city rental taxes on qualifying properties.

If you’re a rental property owner in Arizona, this update simplifies tax compliance but also raises questions about lease adjustments, tenant communications, and ensuring a smooth transition. That’s where hiring a professional property manager can make all the difference.

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