Arizona renters to see savings every month as state eliminates rental tax
PHOENIX (AZFamily) — Renters across Arizona will soon save some extra monthly cash as the state eliminates the Transaction Privilege Tax (TPT), which is added to rent payments every month.
“Anything will help. I’m a single dad, and these are my little girls anything helps the pockets right now. I appreciate it,” said Richard Estrada, who rents in Phoenix. “Everything is so expensive: food, gas, and just trying to do anything.”
Renters will begin to see these savings in January as landlords should drop the tax automatically. This tax only impacts leases longer than 30 days and ranges from 1% to 4%, depending on where you live.
“It can mean a tank of gas, it can mean food on the table,” said Warren Petersen, the president of the Arizona Senate.
Petersen, a sponsor of the law passed in 2023, said this move was key to their efforts to fight inflation.
“It’s a horrible tax, it’s a terrible policy. Arizona was one of only two states in the entire country that charged this tax,” said Petersen.
Not everyone is for removing this tax. The League of Arizona Cities and Towns released this statement to Arizona’s Family:
Petersen responded to this statement, saying, “Cities have been doing great. Here’s the interesting thing: The state has been lowering fees and taxes, making everything more affordable on the state level. It’s completely egregious that these cities continue to raise fees and rates. Cities should be finding ways to save taxpayers money.”
If you have any questions about how your rent will be impacted, the state urges you to contact your landlord.
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