The Mohave County sales tax rate is 5.6 percent in unincorporated areas, matching Arizona’s statewide transaction privilege tax (TPT) with no county add-on. Mohave is one of the few Arizona counties that levies no county excise tax of its own, so a purchase outside city limits carries only the state rate.1Mohave County. Licenses and Taxes Inside Kingman, Lake Havasu City, Bullhead City, or Colorado City, the total goes up because each municipality adds its own tax on top.
Arizona calls this a transaction privilege tax rather than a sales tax because it is technically levied on the vendor for the privilege of doing business in the state. Vendors pass it through to buyers on nearly every receipt, so for a shopper the practical effect is the same.2Arizona Department of Revenue. Transaction Privilege Tax
What You Pay in Each City
The 5.6 percent figure only holds in unincorporated Mohave County. Arizona municipalities set their own TPT rates, and those stack on top of the state rate. Within Mohave County, the commonly referenced retail rates are:
- Kingman adds a 2.5 percent city rate, bringing retail to 8.1 percent.3City of Kingman, AZ. TPT (Sales Tax) Administration
- Lake Havasu City adds 2.0 percent on most business activities, for a total around 7.6 percent.4Lake Havasu City, AZ. Taxes
- Bullhead City and Colorado City also impose city-level TPT, with rates varying by business classification.
On a $1,000 purchase in unincorporated Mohave County you would owe $56 in tax. The same purchase in Kingman would run $81. ADOR publishes a monthly rate table that lists every city-and-county combination; you can download the current version from the department’s website.5Arizona Department of Revenue. Tax Rate Table
Hotels, Motels, and Short-Term Rentals
Lodging follows a separate rate structure. The state TPT rate for transient lodging is 5.5 percent rather than 5.6 percent, and cities layer additional lodging-specific taxes on top of that.6Arizona Department of Revenue. Transaction Privilege and Other Tax Rate Tables – January 1, 2026 In Kingman, the total lodging tax reaches about 12 percent. Lake Havasu City and Bullhead City each sit around 10.5 percent once all the layers are combined.
Online lodging marketplaces that facilitate bookings for Mohave County properties collect and remit these taxes the same way a traditional hotel does. If you rent out a property on a short-term basis yourself, confirm you are using the transient lodging classification (business code 025) rather than the general retail code, because the wrong code leads to underpayment and penalties.
What Is Exempt From the Tax
Several categories of goods are not subject to TPT at all. Food intended for home consumption is exempt, though the exemption does not reach prepared food, restaurant meals, or drinks served at a bar.7Arizona Legislature. Arizona Revised Statutes 42-5061 – Retail Classification Prescription drugs and medical oxygen are exempt when prescribed by a licensed medical, dental, or veterinary professional.8Arizona Legislature. Arizona Revised Statutes 42-5159 – Exemptions Items bought with SNAP benefits are also exempt.
Restaurant meals and amusements in unincorporated Mohave County are taxed at the same 5.6 percent combined rate as retail, with city rates added inside city limits.6Arizona Department of Revenue. Transaction Privilege and Other Tax Rate Tables – January 1, 2026 Businesses should keep careful records of exempt sales, because ADOR can audit those transactions and assess back taxes plus penalties if an exemption was applied incorrectly.
Online Purchases and Out-of-State Sellers
Buying from a seller outside Arizona does not necessarily avoid the tax. Since October 2019, any remote seller or marketplace facilitator with more than $100,000 in gross Arizona sales must register, collect, and remit TPT.9Arizona Department of Revenue. Economic Threshold Sales are sourced to the buyer’s shipping address, so a customer in Lake Havasu City pays that city’s combined rate even if the seller is in another state.10Arizona Department of Revenue. FAQ – Remote Sellers and Marketplace Facilitators
Marketplace facilitators like Amazon or Etsy handle collection for their third-party sellers. If you sell only through a facilitator that already collects Arizona TPT on your behalf, you do not need your own TPT license, though the facilitator should give you documentation confirming it is handling the obligation.10Arizona Department of Revenue. FAQ – Remote Sellers and Marketplace Facilitators
When you buy something from an out-of-state seller that does not collect Arizona tax, you personally owe use tax directly to ADOR at the same 5.6 percent rate.11Arizona Department of Revenue. Understanding Use Tax This covers internet purchases, catalog orders, and anything brought into Arizona for use here. Most individuals report use tax on their annual income tax return. Businesses with a TPT license report it on their regular TPT return using business code 029.
If You’re Running a Business
Any business conducting taxable activity in Mohave County needs a TPT license from ADOR before making its first sale. The application asks for a federal Employer Identification Number, or a Social Security number if you are a sole proprietor with no employees, along with your legal business name, any trade names, and the physical address where business is conducted. Home-based businesses must list the home address.12Arizona Department of Revenue. Applying for a TPT License You apply online through AZTaxes.gov or at an ADOR regional office.
You will also select a three-digit business code for each taxable activity you perform. Retail is 017, restaurants are 011, transient lodging is 025. The code determines the tax rate applied to your gross receipts and routes the revenue to the right state, county, and city accounts.13Arizona Department of Revenue. TPT License
How Often You File
ADOR assigns a filing frequency based on your estimated annual combined tax liability:14Arizona Department of Revenue. TPT Update
- Monthly if you expect more than $8,000 in annual tax liability.
- Quarterly for $2,000 to $8,000.
- Annually for less than $2,000.
Returns go through the AZTaxes.gov portal. Businesses with more than one location are required to file electronically.15Arizona Department of Revenue. Transaction Privilege, Use, and Severance Tax Return (TPT-2) Instructions Paper filers using Form TPT-2 must have the return received by the second-to-last business day of the month. Electronic filers have until the last business day, with the transaction completed before 5:00 p.m. MST on the preceding business day.
Late Filing Costs
Missing a deadline triggers two separate penalties. Late filing runs 4.5 percent of the tax due for each month or partial month the return is overdue, capped at 25 percent. A late payment penalty of 0.5 percent per month also applies to any unpaid balance, capped at 10 percent. Businesses required to file electronically that submit paper instead face a separate 5 percent penalty.16Arizona Legislature. Arizona Revised Statutes 42-1125 – Civil Penalties
Interest piles on top. ADOR calculates interest using the federal short-term rate plus three percentage points, compounded annually. For the first half of 2026, the underpayment rate is 7 percent through March and 6 percent from April through June.17Arizona Department of Revenue. Interest Rates Each January 1, any outstanding interest rolls into the principal, and future interest accrues on that larger balance.
Construction Work Follows Different Rules
Construction is not taxed like retail. Arizona splits construction into prime contracting (new construction and larger alterations), where TPT is paid on the full contract amount, and MRRA work (maintenance, repair, replacement, alteration of existing property), where the contractor pays retail tax on materials at purchase and does not add tax to the customer’s invoice.18Arizona Department of Revenue. Contracting Guidelines The classification turns on scope and dollar thresholds, and getting it wrong can produce significant back taxes, so contractors near the boundary should confirm the classification before starting a project.19Arizona Department of Revenue. MRRA Contracting