How to Invoice as a Freelance Developer in Phoenix, AZ

Invoicing guide for freelance developers in Phoenix: 5.6% AZ sales tax, 1.5%/mo late-fee cap, plus AZ licensing and contractor rules.

Combined sales tax
5.6%
Late fee cap
1.5%/mo
Net terms
15 days
Deposit
25%

1. Phoenix-specific tax handling

  • State sales tax: 5.6%. Local jurisdictions in Phoenix may add their own rate — verify with your local tax assessor.
  • Late fees: AZ statute Ariz. Rev. Stat. §44-1201 caps interest on unpaid invoices at 1.5% per month.

2. Standard freelance developer line items

  • Development — billed by hour (~$125 default).
  • Project milestone — billed by flat.
  • Third-party services — billed by passthrough.

3. Payment terms that work in Phoenix

Net 15 is standard for freelance developers. Most freelance developers in competitive markets like Phoenix require a 25% deposit upfront before scheduling work. Accept card and ACH on the invoice itself — Phoenix customers expect a one-click payment link in their inbox.

4. Licensing & disclosures

No license required. W-9 / 1099 reporting standard.

Metro
Phoenix
State
AZ
Net terms
15 days
Deposit
25%

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