New contractors, out-of-state contractors without a principal business location in Arizona, or contractors with a history of TPT noncompliance. Required when: Failure to pay Transaction Privilege Taxes (TPT), penalties, or other obligations incurred by the bonded principal. Exemptions: In-state contractors who have co…
Overview
What it is.
New contractors, out-of-state contractors without a principal business location in Arizona, or contractors with a history of TPT noncompliance. Required when: Failure to pay Transaction Privilege Taxes (TPT), penalties, or other obligations incurred by the bonded principal. Exemptions: In-state contractors who have co…
Who usually needs it
New contractors, out-of-state contractors without a principal business location in Arizona, or contractors with a history of TPT noncompliance.
Pricing & timing
What to expect.
Generic pricing
Tax bonds guarantee payment of taxes or compliance with tax regulations. Typical Pricing:. • Standard tax bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. • Credit check: Required for most tax bonds. Common types include sales tax bonds, fuel tax bonds, and cigarette/tobacco tax bonds. Quick approval is typical for applicants with good credit. Some tax bonds…
Typical timeframe
Credit-based approval — typically 1–2 business days
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateAZBond amountBased on business class. $2,000 for most specialty trades (Electrical, Plumbing…Term lengthMinimum 2 yearsObligeeArizona Department of RevenueRenewalContinuous; must be maintained for at least two years or until the contractor qualifies for an exemption.Bond classTax BondCategoryConstructionBondTaxpayer Bond for ContractorsStatutory referenceA.R.S. § 42-5006JurisdictionState
