Surety bonds • Arizona
Arizona TPT Bond for Contractors: Amounts, Exemptions, and Cost
The Arizona Department of Revenue generally requires a transaction privilege tax (TPT) bond from new contractors, out-of-state contractors without a principal place of business in Arizona, and contractors with a history of TPT noncompliance. The bond is a flat amount set by contractor type: $2,000, $7,000, $17,000, or $22,000. Published prices start around $175 for two years.
This guide covers who needs a TPT bond, the amounts by contractor type, the bond exemption, how to file, and cost. This bond is separate from your ROC license bond. Blake Insurance Group is an independent agency, and a licensed agent can help with both.
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TPT bond amounts by contractor type
| Bond amount | Contractor types |
|---|---|
| $2,000 | Most trade and specialty contractors, such as electrical, plumbing, roofing, and concrete |
| $7,000 | General contractors of single-family housing; water, sewer, pipeline, communication, and power line construction |
| $17,000 | General contractors of industrial, warehouse, and other nonresidential buildings; highway and street construction (not elevated) |
| $22,000 | Heavy, bridge, and tunnel construction; elevated highway construction |
Tiers published by the Arizona Department of Revenue.
Who needs a TPT bond
- New contractors.
- Out-of-state contractors without a principal place of business in Arizona (an Arizona facility with at least one full-time employee during the prior 12 months). Under A.R.S. § 42-5006, the bond must be kept for at least two years in some cases.
- Contractors with a history of TPT noncompliance.
Source: Arizona Department of Revenue.
The annual bond exemption
The Arizona Department of Revenue keeps an annual exemption list for projects of $50,000 or more. To qualify, a contractor must have held its TPT license at least one year, have no more than two delinquencies in the past 12 months, owe no more than $500 in current tax, have a physical Arizona location, and have paid at least $10 in tax over the past 12 months. The list runs August 1 through July 31. Contractors not on the list can request a one-time project exemption.
How to file
- Buy the bond on the Taxpayer Bond for Contractors form (Form 74-4023).
- Submit the paper Arizona Joint Tax Application (JT-1) with the bond; new contractors cannot apply online because of the bonding requirement.
- Keep the bond in force for as long as the Department of Revenue requires.
How much a TPT bond costs
| Bond amount | Published price |
|---|---|
| $2,000 | $175 |
| $7,000 | $245 |
| $17,000 | $595 |
| $22,000 | From $480, after an application review |
Prices published by SuretyBonds.com. Compare with your ROC contractor license bond, which is a separate requirement.
Arizona TPT bond FAQs
Do Arizona contractors need a TPT bond?
New contractors, out-of-state contractors without a principal place of business in Arizona, and contractors with a history of TPT noncompliance generally do.
How much is an Arizona TPT bond?
The bond amount is $2,000, $7,000, $17,000, or $22,000 by contractor type. Published prices start around $175 for a two-year term.
Is the TPT bond the same as the ROC license bond?
No. The TPT bond guarantees transaction privilege tax payments to the Department of Revenue, while the ROC bond is required for your contractor license.
Can I get an exemption from the TPT bond?
Established contractors who meet the Department of Revenue’s criteria may be on its annual exemption list for projects of $50,000 or more, or can request a one-time exemption.
Related guides
Important information
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Cost figures. Published averages and ranges are cited from the sources named, as of the dates shown. They are not quotes and may not reflect your price, which depends on the insurer, the surety, your credit, the bond type, and underwriting.
Availability. Coverage, prices, discounts, and eligibility vary by insurer, state, and applicant, and are subject to underwriting. The issued policy controls.
Your next step
Tell us your contractor type, and a licensed agent will help with your Arizona TPT and license bonds, or start a bond quote online with our partner.
