Arizona (AZ) DOR Use Tax Calculator (2019)

A free tool for calculating the 2019 use tax for purchases brought into Arizona.

Visualizing Your Tax Calculation

Chart displaying the breakdown of your purchase cost and tax obligations.

What is the az dor tax use calculator 2019?

The az dor tax use calculator 2019 is a tool designed to help Arizona residents calculate the use tax they owe on tangible personal property purchased from out-of-state sellers for use, storage, or consumption within Arizona. Use tax is a companion to the sales tax (known in Arizona as Transaction Privilege Tax or TPT). It applies when an out-of-state vendor does not collect Arizona sales tax at the time of purchase. This situation often occurs with internet, mail-order, or out-of-state physical purchases. The tax was created to ensure fairness for Arizona-based businesses who are required to collect sales tax, preventing out-of-state sellers from having an unfair price advantage.

Anyone living in Arizona who purchased goods in 2019 from another state (or country) and didn’t pay Arizona sales tax on that purchase should use this calculator. A common misunderstanding is that if you paid *any* sales tax, you’re exempt. However, if the tax you paid to another state is less than what you would have owed in Arizona, you are still liable for the difference. Our AZ sales tax calculator helps clarify this exact amount.

AZ Use Tax Formula and Explanation

The formula for calculating the Arizona use tax for 2019 is straightforward. The core idea is to determine the tax that would have been due in Arizona and then subtract any tax already paid to another jurisdiction.

Formula: Final Use Tax Owed = (Purchase Price × AZ Tax Rate) - Sales Tax Paid Elsewhere

The result cannot be negative. If the sales tax paid elsewhere is greater than the potential Arizona tax, you do not get a refund; your use tax liability is simply $0.

Variables in the Use Tax Calculation

Variable	Meaning	Unit	Typical Range
Purchase Price	The total cost of the goods or services acquired.	USD ($)	$1 – $100,000+
AZ Tax Rate	The applicable combined state and local use tax rate for your location in 2019.	Percentage (%)	5.6% – 11.2%
Sales Tax Paid Elsewhere	The amount of sales tax already paid to another state on the purchase.	USD ($)	$0+

Practical Examples

Example 1: Online Purchase with No Tax Collected

An Arizona resident buys a home office desk online for $1,500 in 2019. The seller is based in a state with no sales tax and collects $0 in tax from the buyer.

• Inputs:
  • Purchase Price: $1,500
  • AZ Tax Rate: 5.6% (state rate)
  • Sales Tax Paid Elsewhere: $0
• Results:
  • Potential AZ Tax: $1,500 * 0.056 = $84.00
  • Final Use Tax Owed: $84.00 – $0 = $84.00

Example 2: Purchase in a State with Lower Tax

An Arizona resident travels to a neighboring state and buys a laptop for $2,000 in 2019. They pay a 3% local sales tax, totaling $60.

• Inputs:
  • Purchase Price: $2,000
  • AZ Tax Rate: 5.6% (state rate)
  • Sales Tax Paid Elsewhere: $60
• Results:
  • Potential AZ Tax: $2,000 * 0.056 = $112.00
  • Final Use Tax Owed: $112.00 – $60.00 = $52.00

How to Use This az dor tax use calculator 2019

Using our calculator is simple. Follow these steps for an accurate calculation:

1. Enter Purchase Price: Input the total cost of the item in the first field. Do not include any shipping costs unless they were part of the taxable base.
2. Confirm Tax Rate: The calculator defaults to the 2019 Arizona state use tax rate of 5.6%. If you know a specific local or city rate applies, you can adjust this value. You can look up historical rates using an Arizona TPT rate lookup tool.
3. Enter Tax Already Paid: If you paid sales tax to the out-of-state seller, enter that dollar amount here. If no tax was paid, leave it as 0.
4. Review Results: The calculator will instantly show you the “Final Use Tax Owed to Arizona.” It also displays intermediate values, like the “Total Potential AZ Tax” and your “Credit for Taxes Paid,” so you can understand how the final number was derived.

Key Factors That Affect Arizona Use Tax

• Purchase Location: The tax is only relevant for purchases made from outside Arizona for use inside Arizona.
• Seller’s Nexus: If the out-of-state seller has a physical or economic presence (“nexus”) in Arizona, they are required to collect Arizona TPT, and you would not need to self-report use tax.
• Tax Rate at Point of Use: The correct tax rate is based on where the item is used or stored in Arizona, which can include state, county, and city rates. This az dor tax use calculator 2019 defaults to the state rate for simplicity.
• Credit for Taxes Paid: The most significant factor reducing your liability is any sales tax already paid. You can credit this amount dollar-for-dollar against the Arizona tax due.
• Type of Property: Most tangible personal property is taxable. However, some items, like prescription drugs or certain groceries, may be exempt. A property tax calculator can help with real estate, which is taxed differently.
• Filing Date: Use tax should be reported on Arizona Form TPT-2 or through a specific use tax return (Form TPT-U). For 2019, this would typically have been filed in early 2020.

Frequently Asked Questions (FAQ)

What was the Arizona state use tax rate in 2019?

The state rate for both sales tax and use tax in Arizona during 2019 was 5.6%. Local jurisdictions could add their own tax on top of this.

Do I have to pay use tax on everything I buy online?

You only owe use tax if the online seller did not collect Arizona sales tax. Many large online retailers now collect Arizona sales tax automatically. Check your invoice for a line item showing tax collected.

What if I paid more tax in another state than I would have in Arizona?

If the sales tax you paid elsewhere is higher than the Arizona use tax due, your liability is $0. You do not get a refund or credit from Arizona for the overpayment.

Is there a use tax on vehicles?

Yes, there is a specific vehicle use tax in Arizona for vehicles purchased out-of-state and brought into Arizona for registration. The calculation is similar and often handled at the time of registration.

How do I pay the use tax I calculate?

Individuals can report and pay use tax on their Arizona income tax return (Form 140) or by filing Form TPT-U with the Arizona Department of Revenue (ADOR). Businesses typically report it on their TPT-2 return.

Is there a minimum purchase amount before use tax applies?

No, there is no de minimis exemption for use tax in Arizona. Any purchase, no matter how small, is technically subject to the tax if no Arizona sales tax was collected.

What’s the difference between use tax and sales tax?

Sales tax (TPT) is collected by the seller at the point of sale. Use tax is paid directly by the buyer to the state when sales tax has not been collected by the seller. They are two sides of the same coin, designed to tax consumption within the state.

Can the ADOR find out if I don’t pay use tax?

Yes. The ADOR has information-sharing agreements with other states and can conduct audits. Failure to pay can result in penalties and interest on the unpaid tax. It is best to use an az dor tax use calculator 2019 to ensure compliance.

Related Tools and Internal Resources

Explore other financial calculators and resources to help manage your finances and tax obligations in Arizona.