Transaction Privilege Tax (TPT) is a tax on the privilege of doing business in Arizona similar to sales tax in other states. If you own a rental property in Arizona and rent it for a period of more than 30 days you may have to pay transaction privilege tax (TPT) on your monthly rental income. Some cities, not all, opt to tax residential rental income. The Arizona Department of Revenue recently released a matrix to show who must collect and remit these taxes dependent on the city where your rental property is located as well as the number of rental properties you own. To see if you are subject to the residential rental transaction privilege tax (TPT) click on the link below.