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

Arizona has a base sales tax of 5.6 percent set by the state. However, most Arizona cities and counties add their own local sales tax on top of that amount. Your actual rate at checkout ranges from 5.6 percent to over 11 percent depending on which city or county you are in. A purchase that costs $100 in one Arizona town might cost a different amount in another town 20 miles away.

The state collects the 5.6 percent and sends it to the Arizona Department of Revenue. Cities and counties collect their portion and keep it for local services like police, fire, libraries, and roads. When you see a price tag in a store, the sales tax shown at checkout is the combined state plus local rate for that specific location.

Key Takeaways

  • Arizona's state sales tax is 5.6 percent, but local cities and counties add their own tax on top of that, making your total rate between 5.6 and over 11 percent depending on location.
  • Phoenix has a combined rate of 8.6 percent, Tucson is 8.1 percent, and smaller towns vary widely — you can look up your exact rate on the Arizona Department of Revenue website.
  • Sales tax applies to most goods but not to groceries, prescription medications, or medical equipment.
  • Online purchases from out-of-state sellers may or may not have Arizona sales tax added at checkout, depending on the seller's policies and state law.

Combined rates in major Arizona cities

The combined state plus local rate varies significantly across Arizona. Phoenix residents pay 8.6 percent total. Tucson residents pay 8.1 percent. Mesa is 8.6 percent. Chandler is 8.6 percent. Scottsdale is 8.85 percent. Glendale is 8.6 percent. Tempe is 8.6 percent. Peoria is 8.6 percent.

Smaller cities and rural areas can have different rates. Some towns add only a small local tax, bringing the total close to the state minimum of 5.6 percent. Others add larger local taxes for specific projects or services. If you live or shop in a smaller community, the rate may differ from these major-city examples.

You can find the exact combined rate for any Arizona city or zip code on the Arizona Department of Revenue website. Search by city name or zip code and the site will show you the current combined rate. Rates can change when cities or counties vote to adjust their local portion, though this does not happen frequently.

What items are taxed and what are not

Most goods sold in Arizona are subject to sales tax. Clothing, electronics, furniture, and household items all have tax added at checkout. However, certain items are exempt from sales tax under Arizona law.

Groceries and food items purchased for home consumption are not taxed. This includes bread, milk, vegetables, meat, and canned goods. Restaurant meals and prepared foods are taxed. Prescription medications are not taxed. Over-the-counter medications like aspirin or cold medicine are taxed. Medical equipment prescribed by a doctor, such as wheelchairs or oxygen equipment, is typically not taxed.

Services are generally not subject to sales tax in Arizona. If you pay a plumber, electrician, or contractor for labor, that service charge is not taxed. However, if they sell you materials as part of the job, the materials themselves may be taxed depending on the situation.

How sales tax works on online and out-of-state purchases

Sales tax on online purchases depends on where the seller is located and their business practices. If you buy from an Arizona-based online seller, Arizona sales tax is usually added to your order. If you buy from an out-of-state seller, the seller may or may not add Arizona sales tax.

Large online retailers like Amazon, Walmart, and Target now collect Arizona sales tax on most orders shipped to Arizona addresses, even though they are based out of state. Smaller out-of-state sellers may not collect Arizona tax. In those cases, Arizona law technically requires you to pay "use tax" on the purchase when you file your state income tax return, though most individuals do not do this.

The rules around online sales tax are complex and continue to change. If you are unsure whether tax should have been added to a specific online purchase, you can contact the Arizona Department of Revenue for clarification on that seller's obligations.

Who collects the tax and where the money goes

The retailer or seller collects sales tax from you at the point of sale. They hold that money and send it to the Arizona Department of Revenue on a regular schedule, usually monthly. The state then distributes the local portion to the appropriate city or county based on where the sale occurred.

The state keeps the 5.6 percent state portion. Cities and counties keep their local portion. These funds go into general budgets that pay for public services. In some cases, a city or county has approved a temporary sales tax increase for a specific project, such as building a new library or improving roads. When that project is complete or the approved time period ends, that portion of the tax may expire.

Sales tax on vehicles and large purchases

Vehicle purchases in Arizona are subject to sales tax based on the purchase price. If you buy a car for $25,000, you pay sales tax on that $25,000 at your local combined rate. The tax is typically collected at the time of purchase by the dealership or private seller, though the exact process depends on how you buy the vehicle.

If you trade in a vehicle as part of the purchase, Arizona allows you to subtract the trade-in value from the purchase price before calculating tax. This is called the "trade-in credit." So if you buy a $25,000 car and trade in a vehicle worth $5,000, you pay sales tax on $20,000 instead of $25,000.

When you register a vehicle with the Arizona Department of Transportation, they verify that sales tax was paid. If you buy a vehicle out of state and bring it to Arizona, you may owe Arizona use tax on it. The registration process will flag this if it applies to your situation.

Tax rate changes and how to stay informed

Arizona's state sales tax rate of 5.6 percent has been in place since 1983 and does not change often. Local city and county rates change more frequently because they are voted on by local voters or city councils. A city might increase its local rate to fund a specific project, or decrease it when that project is complete.

The Arizona Department of Revenue publishes a list of all combined rates by location and updates it when changes take effect. You can check this list anytime to see the current rate for any Arizona city or zip code. If you own a business or manage a retail location, you should monitor these updates to ensure you are charging the correct rate.

Some Arizona cities have approved temporary sales tax increases that are set to expire on specific dates. For example, a city might have approved a 0.5 percent increase for five years to fund a transit project. When that five-year period ends, the rate drops back down. The Arizona Department of Revenue website shows which rates are temporary and when they expire.

Frequently Asked Questions

Does Arizona have sales tax on groceries?

No. Groceries purchased for home consumption are not subject to Arizona sales tax. This includes bread, milk, produce, meat, eggs, and canned goods. However, prepared foods, restaurant meals, and items from a deli counter are taxed.

What is the sales tax rate in my city?

You can find your exact combined rate on the Arizona Department of Revenue website by searching your city name or zip code. Rates range from 5.6 percent to over 11 percent depending on location. Major cities like Phoenix and Tucson are around 8 to 8.6 percent.

Do I pay sales tax when I buy something online from out of state?

It depends on the seller. Large retailers like Amazon and Walmart collect Arizona sales tax on orders shipped to Arizona. Smaller out-of-state sellers may not. If tax is not collected, Arizona law says you owe use tax, though this is rarely enforced for individual purchases.

Is sales tax added to the price shown on the price tag?

Yes. The price tag shows the item's cost before tax. Sales tax is calculated and added at checkout. So a $10 item in Phoenix costs $10.86 after the 8.6 percent tax is added.

Can I get a refund of sales tax I paid?

Generally no, unless the item is returned and you get a refund of the full purchase price including tax. If you paid sales tax on an item and then return it, the refund includes the tax you paid. Tourists and visitors cannot reclaim sales tax paid during their stay.