Arizona's sales tax rate and what it covers
Arizona's state sales tax is 5.6 percent. This is the base rate that applies statewide. However, most purchases in Arizona are subject to additional local sales taxes — county and city taxes — that stack on top of the state rate. Your total sales tax depends on where you make the purchase.
The combined rate in most Arizona cities ranges from 7.3 percent to 10.7 percent. For example, Phoenix's combined rate is 8.6 percent, while Tucson's is 8.1 percent. Some smaller towns have lower combined rates. You can find your exact local rate by entering your address on the Arizona Department of Revenue website or asking a retailer in your area.
Sales tax applies to most tangible goods — clothing, electronics, furniture, groceries at checkout, and restaurant meals. It does not apply to services like haircuts, car repairs, or medical care. Prescription medications are exempt, but over-the-counter drugs and vitamins are taxed.
Key Takeaways
- Arizona's state sales tax is 5.6 percent, but your actual rate is higher because local taxes add 1.7 to 5.1 percentage points depending on your city and county.
- Sales tax applies to goods you buy in stores and online, but not to services like repairs or professional fees.
- Groceries, prescription medications, and certain medical equipment are exempt from sales tax in Arizona.
- You pay sales tax at the point of sale for in-store purchases; online retailers must collect it if they have a physical presence in Arizona.
Which items are exempt from Arizona sales tax
Certain categories of goods and services do not have sales tax applied. Prescription medications filled by a licensed pharmacist are exempt. This includes insulin, antibiotics, and other drugs prescribed by a doctor. Over-the-counter medications like aspirin, cold medicine, and vitamins are taxed.
Most groceries are exempt — fresh produce, meat, dairy, bread, and canned goods do not have sales tax. However, prepared foods, hot foods, and items from a deli counter are taxed. Candy, soda, and energy drinks are also taxed because they are not considered groceries.
Medical equipment and devices prescribed by a doctor may be exempt, depending on the item. Wheelchairs, crutches, and hearing aids are typically exempt. Eyeglasses and contact lenses are taxed. If you are unsure whether a specific medical item is exempt, ask the retailer or check with the Arizona Department of Revenue.
How local taxes add to the state rate
Arizona allows cities and counties to add their own sales taxes on top of the 5.6 percent state rate. These local taxes fund schools, transportation, and public services. A county might add 0.5 percent, and a city within that county might add another 1 to 2 percent. The result is that you pay multiple layers of tax on a single purchase.
The variation across Arizona is significant. In some rural areas, the combined rate may be as low as 7.3 percent. In Phoenix, it is 8.6 percent. In Flagstaff, it is 8.85 percent. Yuma County has a combined rate of 8.6 percent. These rates change when cities or counties vote to adjust their local tax, so the rate in your area may shift year to year.
When you shop online, the sales tax you pay depends on where the seller is located and where the item is shipped. If an online retailer has a warehouse or office in Arizona, they must collect Arizona sales tax. If they do not have a physical presence in Arizona, they may not collect it — though Arizona law requires you to pay "use tax" on those purchases when you file your state tax return (most people do not).
Who collects and pays Arizona sales tax
The retailer — the store or online seller — is responsible for collecting sales tax from you at the time of purchase. They then send that money to the Arizona Department of Revenue on a monthly or quarterly basis, depending on their sales volume. You do not send sales tax directly to the state.
Businesses that sell goods in Arizona must register for a sales tax permit with the Department of Revenue. This includes brick-and-mortar stores, online retailers, and even individuals who sell items regularly (such as through eBay or Facebook Marketplace, though enforcement for small sellers is limited). The retailer keeps records of all sales and taxes collected.
If you are a business owner selling goods in Arizona, you need to understand your obligations. You must charge the correct rate for your location, collect the tax, and remit it on time. Failure to do so can result in penalties and interest. The Arizona Department of Revenue provides resources and forms for businesses to register and report.
Sales tax on specific purchases
Restaurant meals and takeout are taxed at your local combined rate. This applies whether you eat in the restaurant or take the food home. Alcohol is also taxed. Tipping is not subject to sales tax — only the food and drink themselves.
Clothing and shoes are taxed in Arizona. There is no clothing exemption. A shirt, pants, or pair of shoes purchased in a store or online is subject to sales tax at your local rate.
Gasoline is taxed, but the tax is included in the pump price you see. Arizona also has a fuel tax separate from sales tax, but you do not see it listed separately — it is built into the price. Vehicle registration and license plates are not subject to sales tax.
Utilities like electricity, water, and natural gas are subject to a small sales tax in most Arizona cities. The rate varies by location. Telephone and internet services may also be taxed, depending on your provider and location.
How to find your exact sales tax rate
The easiest way to find your combined sales tax rate is to visit the Arizona Department of Revenue website and use their sales tax rate lookup tool. You enter your street address, and the tool returns your exact state and local rate.
You can also call a local retailer and ask what they charge. Most stores will tell you the combined rate for their location. If you are shopping online, the retailer should show you the tax amount before you complete your purchase — this is the rate for your shipping address.
If you are a business owner or accountant, the Department of Revenue publishes detailed tax rate tables by city and county. These are updated when rates change, which happens a few times per year as cities and counties adjust their local taxes.
Frequently Asked Questions
Do I pay sales tax on online purchases from out-of-state retailers?
It depends on whether the retailer has a physical presence in Arizona. If they do — a warehouse, office, or store — they must collect Arizona sales tax. If they do not, they typically do not collect it, though Arizona law says you owe "use tax" on those purchases. Most people do not pay use tax voluntarily.
Is there a sales tax on used items or secondhand purchases?
Sales tax applies to used goods sold by a business or retailer. If you buy a used car from a dealership, you pay sales tax. If you buy a used item from an individual (like a private car sale or a garage sale), sales tax does not apply. The distinction is whether the seller is in the business of selling.
What if a store charges me the wrong sales tax?
If you notice the tax charged is incorrect, ask the cashier or store manager to correct it. Most errors are caught at the register. If you discover an error after you leave, contact the store with your receipt. Stores are responsible for charging the correct rate, and most will refund the difference if you bring it to their attention.
Do nonprofits and government agencies pay sales tax?
Nonprofits and government agencies are generally exempt from paying sales tax on purchases they make for their operations. They must provide proof of their status (a tax exemption certificate) to the retailer. This exemption does not apply to individuals shopping at nonprofits — you still pay sales tax on items you buy.
How often do Arizona sales tax rates change?
State sales tax (5.6 percent) changes rarely and requires a vote by the Arizona legislature. Local rates change more often — cities and counties vote to adjust their rates several times per year. If you live in the same place for a while, your rate may shift by 0.1 to 0.5 percent. Check the Department of Revenue website if you want to know when your rate last changed.