Arizona has a state sales tax of 5.6 percent, plus local taxes that vary by county and city
Arizona's state sales tax rate is 5.6 percent. On top of that, your county and city add their own local sales taxes. The total you pay depends on where you live and shop. In Phoenix, for example, the combined rate is around 8.6 percent. In Tucson, it's around 8.1 percent. Rural areas may have lower combined rates. When you see a price tag, it does not include sales tax — the tax is added at checkout.
The state rate has been 5.6 percent since 2010. Local rates change occasionally when cities or counties vote to raise or lower them, usually to fund specific projects like transportation or schools. You can find your exact local rate by entering your address on the Arizona Department of Revenue website, or by asking a cashier.
Key Takeaways
- Arizona's state sales tax is 5.6 percent, and your city and county add local taxes on top of that, making your total rate between 5.6 and over 10 percent depending on location.
- Groceries, prescription medications, and medical equipment are exempt from sales tax in Arizona.
- Clothing and shoes are taxed in Arizona, unlike in some other states.
- The tax applies to both in-store purchases and online orders shipped to Arizona addresses.
What is and is not taxed in Arizona
Most goods and services are taxed, but Arizona has a list of exemptions. Groceries — food you cook at home — are not taxed. Restaurant meals and prepared foods are taxed. Prescription medications are exempt. Over-the-counter medicines like aspirin or cold medicine are taxed. Medical equipment such as wheelchairs, crutches, and diabetic supplies are exempt when prescribed by a doctor.
Clothing and shoes are taxed in Arizona. Some states exempt clothing, but Arizona does not. Children's clothing is taxed at the same rate as adult clothing. Used clothing sold at thrift stores is also taxed.
Services like haircuts, car repairs, and plumbing are taxed. Rent and utilities are not taxed. Labor charges on repairs are taxed, but the parts themselves may or may not be, depending on what they are.
How sales tax works on online and out-of-state purchases
If you order something online and it ships to an Arizona address, Arizona sales tax applies. This is true whether the seller is in Arizona or out of state. The seller is responsible for collecting and sending the tax to Arizona, though some smaller sellers may not do this correctly.
If you order something from out of state and pick it up in another state, no Arizona tax applies at the time of purchase. But if you bring it into Arizona later, you do not owe a separate tax — sales tax is meant to be paid once, at the point of sale.
If you buy something in another state and bring it home to Arizona, you do not owe Arizona sales tax. The tax was already paid in the state where you bought it.
Local sales tax rates by county
Arizona has 15 counties, and each one sets its own local rate on top of the 5.6 percent state rate. Some counties have one rate across the whole county. Others allow individual cities to add their own tax on top of the county rate, which is why two neighborhoods in the same county can have different totals.
| County | Typical Local Rate | Combined with State |
|---|---|---|
| Maricopa (Phoenix area) | 3.0% | 8.6% |
| Pima (Tucson area) | 2.5% | 8.1% |
| Coconino (Flagstaff area) | 2.0% | 7.6% |
| Yavapai (Prescott area) | 1.5% | 7.1% |
| Pinal (Casa Grande area) | 2.0% | 7.6% |
These rates can change when voters approve new local taxes. Check your city or county government website or the Arizona Department of Revenue for the current rate in your specific location.
Who collects and where the money goes
Businesses collect sales tax from customers and send it to the Arizona Department of Revenue. The state keeps the 5.6 percent state portion. Local taxes go to the city and county that imposed them. Most local sales taxes fund specific things: road repairs, public transit, schools, libraries, or emergency services. When a city or county votes to raise sales tax, the ballot usually says what the money will be used for.
Businesses file sales tax returns monthly or quarterly, depending on how much they sell. Large retailers file monthly. Small businesses may file quarterly. The Department of Revenue audits some businesses to make sure they are collecting and reporting correctly.
Sales tax on specific items people often ask about
Gasoline: Taxed at the pump. The price you see on the sign includes state and local sales tax.
Alcohol: Beer, wine, and liquor are taxed at the regular sales tax rate, plus Arizona has a separate excise tax on alcohol that is higher than the sales tax.
Cigarettes and tobacco: Taxed at the regular rate, plus Arizona has an excise tax on tobacco products.
Digital goods: E-books, music downloads, and streaming subscriptions are taxed in Arizona.
Vehicles: Sales tax applies when you buy a car, truck, or motorcycle. You pay it to the dealer or private seller, and it is reported to the Arizona Department of Motor Vehicles.
Lottery tickets: Not taxed at the point of sale, but lottery winnings are subject to federal income tax and Arizona state income tax.
Frequently Asked Questions
Is Arizona sales tax higher or lower than other states?
Arizona's combined state and local rate is in the middle. The state rate of 5.6 percent is higher than some states but lower than others. When you add local taxes, Arizona's total is typically between 5.6 and 10.5 percent depending on location. States like California and Tennessee have higher combined rates; states like Nevada and Wyoming have no state sales tax at all.
Do I pay sales tax on used items?
Yes, used items are taxed the same as new ones. A used car, used furniture, or used clothing sold by a business is subject to sales tax. Private sales between individuals are not taxed, but if you sell something to a business or through a business (like a consignment shop), tax applies.
What if a store charges me the wrong sales tax amount?
Small errors happen, but if you notice a significant overcharge, ask the cashier or manager to recalculate. Keep your receipt. If the error is large, you can contact the Arizona Department of Revenue, though they focus on business compliance rather than individual transactions. For most disputes, your best option is to return to the store and ask for a correction.
Do I owe Arizona sales tax on items I buy while traveling outside Arizona?
No. You pay the sales tax of the state where you buy the item. Once you bring it home to Arizona, you do not owe an additional Arizona tax. The tax was already paid where you purchased it.
Are there any income-based exemptions from sales tax?
No. Sales tax applies to everyone at the same rate, regardless of income. There are no exemptions based on how much money you make. Some items are exempt for everyone (like groceries and prescription medications), but income does not change whether you pay tax on other purchases.