Arizona's statewide sales tax is 5.6 percent, but your total rate depends on where you live

Arizona has a base sales tax of 5.6 percent that applies everywhere in the state. However, most Arizona counties and cities add their own local sales tax on top of that. Your actual rate — what you pay at checkout — is the combination of state tax plus any local taxes in your area. This means a purchase in Phoenix may have a different total tax rate than the same purchase in Tucson or Flagstaff.

The state collects its portion and sends a share to counties and cities based on where the sale happened. Local governments use this money for schools, roads, public safety, and other services. When you see a price tag, it usually does not include sales tax, so the amount you pay at the register will be higher than the displayed price.

Key Takeaways

  • Arizona's state sales tax is 5.6 percent, but total tax rates range from about 7.25 percent to over 11 percent depending on your county and city.
  • Local sales taxes are added on top of the state rate and vary by location, so you pay different rates in different parts of Arizona.
  • The tax applies to most goods and some services, but groceries, prescription medications, and certain medical equipment are exempt.
  • Sales tax is collected at the point of sale and sent to the state, which distributes it to counties and cities based on where the transaction occurred.

How local taxes add to the state rate

Counties in Arizona can impose their own sales tax, and cities within those counties can add another layer on top. For example, Maricopa County adds 0.7 percent, and the city of Phoenix adds an additional 2.3 percent. A resident of Phoenix pays 5.6 (state) + 0.7 (county) + 2.3 (city) = 8.6 percent total. Someone in a different city or county will have a different combination.

The rates change periodically as cities and counties adjust their budgets or voters approve new taxes. Some areas have temporary increases that expire on a set date, while others have permanent rates. You can find your exact local rate by entering your address on the Arizona Department of Revenue website or by asking a local business.

What is and is not taxed in Arizona

Sales tax in Arizona applies to tangible goods — things you can touch and take home, like clothing, electronics, furniture, and gasoline. It also applies to some services, including repairs, haircuts, and dry cleaning. However, certain items are always exempt from sales tax statewide.

Groceries and food for home consumption are not taxed, though prepared food and restaurant meals are. Prescription medications and certain medical devices are exempt. Clothing and footwear are taxed, but there is no special exemption for back-to-school purchases or any other category. If you are unsure whether a specific item is taxed, the retailer or the Department of Revenue can tell you.

Who collects and where the money goes

Retailers collect sales tax at the point of sale and hold it temporarily. They then send it to the Arizona Department of Revenue, which tracks the money by location and distributes it to the appropriate county and city based on where each transaction occurred. This means a purchase made in Scottsdale goes to Scottsdale and Maricopa County, while a purchase in Flagstaff goes to Flagstaff and Coconino County.

The state keeps its 5.6 percent portion for the state general fund, which supports education, courts, and other state services. Counties and cities use their portions for local priorities like police, fire, libraries, and infrastructure. Some areas have dedicated sales taxes for specific purposes — for example, a city might have a separate tax that goes only to public transportation.

Sales tax on online and out-of-state purchases

If you order something online from a retailer that has a physical location in Arizona or meets certain sales thresholds, Arizona sales tax applies to your purchase. The retailer collects it based on your delivery address, so you pay the tax rate for your county and city. If you order from a retailer with no Arizona presence and below the threshold, you may not see tax added, though Arizona law technically requires you to pay use tax on those purchases yourself when you file your state tax return.

In practice, most people do not report use tax on personal purchases. The rule exists mainly to level the playing field between online retailers and brick-and-mortar stores. If you are a business owner buying inventory or equipment, you should track these purchases and report them, as the state may audit business records.

How to find your exact local rate

Your total sales tax rate depends on your specific address, not just your city or county. The Arizona Department of Revenue maintains a tax rate lookup tool on its website where you can enter your street address and see your exact combined rate. You can also call your city or county assessor's office, or ask a local retailer what rate applies in your area.

If you are moving to a different part of Arizona or shopping in a different city, remember that the rate will change. This is especially important if you are budgeting for a large purchase or comparing prices between locations. Some people cross city or county lines to shop in lower-tax areas, though the difference is usually only a percentage point or two.

Frequently Asked Questions

Is Arizona sales tax the same everywhere in the state?

No. The state rate is 5.6 percent everywhere, but counties and cities add their own taxes on top. Total rates range from about 7.25 percent to over 11 percent depending on where you live. You can look up your exact rate using your address on the Arizona Department of Revenue website.

Are groceries taxed in Arizona?

Groceries and food you buy to cook at home are not taxed. However, prepared foods, restaurant meals, and food from a deli counter are subject to sales tax. This distinction applies statewide regardless of your location.

Do I pay sales tax on online purchases?

If the online retailer has a physical presence in Arizona or meets sales thresholds, yes — they collect Arizona sales tax based on your delivery address. If they do not, you technically owe use tax, though most individuals do not report it. Businesses should track these purchases and report them.

What happens if a city or county changes its sales tax rate?

The new rate takes effect on the date the city or county sets, usually the first day of a month. Retailers update their systems before the change date. If you are unsure whether a rate has changed, check the Arizona Department of Revenue website or ask your local tax assessor's office.

Can I deduct Arizona sales tax on my federal income tax return?

You can deduct either state income tax or state sales tax on your federal return, but not both. Most Arizona residents deduct income tax because it is usually higher. You would only choose sales tax if you had very low income or made large purchases like a car or boat.