Arizona sales tax is a tax added to most purchases at the point of sale

When you buy something in Arizona, the store adds a tax to your bill at checkout. That tax goes to the state and to your city or county. The amount you pay depends on where you are in Arizona — the state sets a base rate, but each city and county can add their own portion on top. You cannot avoid it by paying cash or by shopping online from an Arizona seller; the tax applies either way.

The tax is calculated as a percentage of the purchase price. If something costs $100 and the combined tax rate where you are is 8.6%, you pay $108.60. The store collects the money and sends it to the state and local governments. You do not file anything or claim it back — it is simply part of what you owe when you buy.

Key Takeaways

  • Arizona's state sales tax rate is 5.6%, but your actual rate is higher because cities and counties add their own taxes on top.
  • The combined rate varies by location — Phoenix is different from Tucson, and a small town may be different from both.
  • Most goods are taxed, but groceries, prescription medications, and some medical equipment are not.
  • Online purchases from Arizona sellers are taxed the same way as in-store purchases; the seller collects the tax at checkout.

Arizona's state rate and local add-ons

Arizona's base state sales tax rate is 5.6%. However, that is not what you actually pay. Every city and county in Arizona adds its own local tax on top of the state rate. In Phoenix, the combined rate is 8.6%. In Tucson, it is 8.45%. In Flagstaff, it is 8.73%. A town you have never heard of might be 7.2% or 9.1%.

The reason rates vary is that local governments use sales tax revenue for schools, roads, libraries, and other services. They set their own rates within state law. If you move from one Arizona city to another, your sales tax rate changes. If you shop near a city border, the rate depends on which side of the line the store is on. There is no single "Arizona sales tax" — there are dozens of different rates across the state.

What is and is not taxed

Most things you buy are taxed. Clothing, electronics, furniture, gasoline, restaurant meals, and hotel rooms all have sales tax added. However, some purchases are exempt — the state does not tax them, and neither do cities and counties.

Groceries are not taxed in Arizona. That means milk, bread, vegetables, meat, and canned goods have no sales tax. However, prepared foods and items from a deli counter are taxed. Prescription medications are not taxed. Over-the-counter medicines like aspirin or cold medicine are taxed. Certain medical equipment and devices prescribed by a doctor are not taxed, but the rules are specific — ask the seller or check with the Arizona Department of Revenue if you are unsure.

Services are usually not taxed either. A haircut, a doctor visit, or car repair labor typically have no sales tax. However, if you buy a product as part of that service — like shampoo at a salon or parts at a repair shop — the product itself may be taxed.

How online purchases are taxed

If you order something online from a seller based in Arizona, sales tax is added at checkout, just as it would be in a physical store. The seller collects the tax and sends it to the state and local governments. The tax rate is based on the address where the item is being shipped — your home address in Arizona, not the seller's location.

If you order from a seller outside Arizona, the rules are more complicated and depend on the seller's size and whether they have a physical presence in Arizona. Many large online retailers now collect Arizona sales tax on all orders shipped to Arizona addresses. If a seller does not collect tax at checkout, you are technically responsible for paying "use tax" to Arizona when you file your state income tax return — but most individuals do not do this, and enforcement is limited.

When you pay and who collects it

You pay sales tax at the moment of purchase. At a store, it is added to your bill at the register. Online, it is added before you complete checkout. You hand over the total amount — purchase price plus tax — and the transaction is complete. You do not receive a bill later or file anything with the state.

The store or online seller collects the tax from you and holds it temporarily. They then send it to the Arizona Department of Revenue and to the city or county where the sale occurred. This happens on a schedule set by state law — usually monthly or quarterly, depending on the seller's size. The money never passes through your hands after you pay it.

Sales tax on specific situations

If you buy something used, sales tax still applies in most cases. A used car, used furniture, or used clothing bought from a store is taxed. However, a private sale between two individuals — selling your car to a neighbor, for example — is not taxed by the seller, though the buyer may owe use tax when registering the vehicle with the state.

If you buy something and return it, the tax is refunded along with the purchase price. If you exchange an item for a different one, tax is calculated on the new item's price. If you buy something in one Arizona city and take it to another, you do not pay tax twice — you paid it once at the point of sale, and that is the only tax owed.

Shipping costs are sometimes taxed and sometimes not, depending on how the seller structures the charge and what state law says about that particular type of item. If you are unsure whether shipping is taxed on a specific purchase, the seller's checkout page should show the breakdown.

Frequently Asked Questions

Why is my sales tax rate different from my neighbor's?

Arizona cities and counties set their own local tax rates on top of the state rate. If you live in one city and your neighbor lives in another, even if you are close by, your rates can differ. The combined rate depends entirely on your location. You can find your exact rate on the Arizona Department of Revenue website by entering your address.

Do I pay sales tax on groceries?

No. Groceries — unprepared food you buy to cook at home — are not taxed in Arizona. This includes produce, meat, dairy, bread, and canned goods. However, prepared foods like deli items, restaurant meals, and hot food from a store counter are taxed. Alcohol and tobacco are also taxed.

What if I buy something online from outside Arizona?

If the seller is based outside Arizona and does not have a physical location in Arizona, they may not collect Arizona sales tax. You would technically owe use tax to Arizona, but this is rarely enforced for individual purchases. Large retailers like Amazon now collect tax on most orders shipped to Arizona regardless of where they are based.

Can I get a sales tax refund?

If you return an item within the store's return window, you get a refund of the full amount including tax. If you exchange an item for another, tax is recalculated on the new purchase price. You cannot claim sales tax as a deduction on your personal income tax return in Arizona.

Is sales tax added before or after discounts?

Sales tax is calculated on the final price after discounts are applied. If an item is $100, you get a $10 discount, and the tax rate is 8.6%, you pay tax on $90, not $100. The store's register automatically calculates this at checkout.