Arizona sales tax is a tax added to the price of most goods and some services when you buy them at the register
Arizona's statewide sales tax rate is 5.6 percent. When you make a purchase, this percentage is calculated on the sale price and added to your total bill. The tax applies to tangible items — things you can touch and take home — like groceries, clothing, electronics, and furniture. Some services are also taxed, though not all.
The 5.6 percent is the base rate set by the state. However, most Arizona counties and cities add their own local sales tax on top of it. This means your actual tax rate depends on where you live and where you shop. A purchase in Phoenix will have a different total tax rate than the same purchase in Tucson or Flagstaff.
You do not pay sales tax separately or file anything yourself. The business where you shop calculates it, adds it to your bill, and sends the collected tax to the state and local governments. Your receipt will show the tax amount added.
Key Takeaways
- Arizona's base sales tax rate is 5.6 percent, but your actual rate is higher because counties and cities add local taxes on top.
- Sales tax applies to most physical goods and some services, but groceries, prescription medications, and medical equipment are usually exempt.
- The total tax rate you pay varies by location — it can range from about 7.6 percent to over 10 percent depending on your county and city.
- The business collects and remits the tax; you see the final amount on your receipt and do not file anything yourself.
How local taxes stack on top of the state rate
Arizona allows counties and cities to impose their own sales taxes in addition to the state's 5.6 percent. Most Arizona counties have added a county sales tax between 0.5 and 1.25 percent. Many cities have added another 1 to 2 percent on top of that. The result is that your total sales tax rate is the sum of all three layers: state, county, and city.
For example, if you shop in Maricopa County (which includes Phoenix), you pay the 5.6 percent state rate plus Maricopa County's 0.7 percent plus your city's local rate. Phoenix itself adds 2.3 percent, bringing the total to 8.6 percent. The same item bought in a different city in the same county would have a different total because that city's rate differs.
You can find your exact local rate by entering your address on the Arizona Department of Revenue website or by asking a cashier. Tax rates can change when cities or counties vote to raise or lower them, though this happens infrequently.
What is and is not taxed in Arizona
Most items you buy in a store are subject to sales tax. This includes clothing, shoes, electronics, furniture, toys, books, and household goods. Prepared food — meals at restaurants, takeout, and food from a deli counter — is taxed. Gasoline and diesel fuel are taxed at the pump.
Several categories are exempt from sales tax. Groceries intended for home consumption — raw meat, produce, bread, canned goods, and dairy — are not taxed. Prescription medications filled at a pharmacy are exempt. Medical equipment prescribed by a doctor, such as wheelchairs, hearing aids, and oxygen equipment, is not taxed. Durable medical equipment used in the home is also exempt.
Services are taxed differently than goods. Labor and installation services are generally not taxed. If you hire a plumber or electrician, you pay tax only on the materials they use, not on their labor. However, some services like dry cleaning, car washes, and haircuts are taxed in Arizona.
When you do and do not see sales tax on your bill
Sales tax appears on your receipt whenever you buy a taxable item at a store, restaurant, or gas station. The cashier or register system calculates it based on your location and the items you purchased. You see the subtotal, then the tax amount, then the final total you owe.
Online purchases have changed how sales tax works. If you order from a retailer that has a physical location or employees in Arizona, they must collect and remit Arizona sales tax on your order. If you order from an out-of-state retailer with no Arizona presence, they typically do not collect Arizona tax at checkout. However, Arizona law requires you to pay "use tax" on those purchases — it is the same rate as sales tax, but you owe it directly to the state. Most individual shoppers do not file use tax returns, though the law technically requires it.
Resale certificates allow businesses to buy items without paying sales tax if they plan to resell those items. A business provides the seller with a resale certificate, and the tax is not charged. The tax is instead paid when the end customer buys the item.
How sales tax rates differ across Arizona cities and counties
Arizona's 15 counties each set their own county sales tax rate, and within each county, individual cities can add their own rate on top. This creates a patchwork of different total rates across the state.
| Location | Approximate Total Rate |
|---|---|
| Phoenix (Maricopa County) | 8.6% |
| Tucson (Pima County) | 8.1% |
| Mesa (Maricopa County) | 8.6% |
| Flagstaff (Coconino County) | 8.35% |
| Scottsdale (Maricopa County) | 8.725% |
Rates can vary even within the same city if you cross a city boundary. Shopping just outside city limits might mean a lower tax rate. Some people who live near city borders pay attention to this when making large purchases, though the difference is usually small.
Tax rates change when voters approve increases or decreases, but this is not common. When a rate does change, businesses are notified in advance and update their systems before the new rate takes effect.
Why Arizona has sales tax and how the money is used
Arizona imposes sales tax to fund state and local government operations. The state portion funds education, transportation, and other state services. County and city portions fund local schools, police and fire departments, libraries, parks, and infrastructure projects.
When you pay sales tax, part of it goes to the state general fund, part to the county, and part to the city where the purchase occurred. Businesses collect the tax and send it to the Arizona Department of Revenue, which distributes it according to state law. Local governments receive their portions directly or through the state distribution system.
Sales tax is one of Arizona's main sources of revenue. Unlike income tax, which is based on what you earn, sales tax is based on what you spend. This means the amount you pay in sales tax varies depending on your purchasing habits, not your income level.
Frequently Asked Questions
Does Arizona have state income tax in addition to sales tax?
Yes. Arizona has both a state income tax and a sales tax. Income tax is withheld from paychecks or paid when you file your annual tax return. Sales tax is added at the point of purchase. Both apply to most Arizona residents.
Do I pay sales tax on used items bought from a private person?
No. Sales tax applies only to purchases from businesses. If you buy a used car, furniture, or clothing from a private individual, no sales tax is owed. However, if you buy a used item from a business or dealer, sales tax applies.
What if the cashier charges me the wrong sales tax amount?
Check your receipt against your location's current tax rate. If the amount is wrong, point it out to the cashier or manager immediately. Most errors are caught and corrected on the spot. If you discover an error after leaving, contact the store with your receipt.
Do I owe sales tax on items I buy outside Arizona and bring home?
Arizona's use tax law says you owe tax on items purchased out of state if you bring them into Arizona, but this is rarely enforced for individual purchases. The tax rate would be the same as Arizona's sales tax for your location.
Are there any temporary sales tax holidays in Arizona?
Arizona does not have an official statewide sales tax holiday. Some cities or counties may run limited tax-free periods for specific items, but these are uncommon and vary by location. Check with your city or county government for any local promotions.