Arizona has a statewide sales tax of 5.6 percent, plus local taxes that vary by county and city
Arizona charges 5.6 percent sales tax on most retail purchases. On top of that, your county and city add their own local sales taxes. The total you pay depends on where you shop. In Phoenix, for example, the combined rate is 8.6 percent. In Tucson, it's 8.1 percent. A purchase that costs $100 before tax will cost between $5.60 and $10 more depending on your location.
The state collects this tax at the point of sale — when you buy something in a store, online, or by mail. You don't file it yourself on a tax return the way you do with income tax. The business you buy from collects it and sends it to Arizona.
Key Takeaways
- Arizona's base sales tax rate is 5.6 percent statewide, but your actual rate includes county and city taxes that range from about 0.5 to 4.5 percent on top of that.
- Most goods are taxable, including clothing, groceries, and prepared food, though a few categories like unprepared food and prescription drugs are not.
- Local tax rates change by location, so the same item costs different amounts in tax depending on which city or county you're in.
- Online purchases from out-of-state sellers are subject to Arizona sales tax if the seller has a physical presence in the state or meets federal nexus rules.
What items are taxed and what are not
Most things you buy in Arizona are subject to sales tax. Clothing, electronics, furniture, and prepared food all get taxed. Groceries — unprepared food you cook at home — are not taxed. Prescription drugs are not taxed. Over-the-counter medications like aspirin or cold medicine are taxed.
Services are usually not taxed in Arizona, with some exceptions. A haircut is not taxed. A plumber's labor is not taxed. But if you buy a product as part of that service — like paint or parts — the product itself may be taxed depending on how the business structures the invoice.
Prepared food and restaurant meals are taxed at the full rate. This includes takeout, delivery, and food from a food truck. The distinction is whether you're buying something ready to eat or ingredients to prepare yourself.
How local taxes work on top of the state rate
Arizona's 5.6 percent is the floor. Every county adds a tax, and most cities add another one on top of that. These local rates fund schools, transportation, and other services in your area.
The combined rate you pay depends on your exact location. If you live in Maricopa County, the county adds 0.7 percent. If you shop in Phoenix, the city adds another 2.3 percent. That puts your total at 8.6 percent. If you shop in a different city in the same county, the city rate changes. Tempe, also in Maricopa County, has a city rate of 2.05 percent, bringing the total to 8.25 percent.
You can find your exact local rate by entering your address on the Arizona Department of Revenue website or by asking the cashier. The receipt shows the total tax you paid, but not always the breakdown between state and local.
Sales tax on online and out-of-state purchases
If you buy something online from a company that has a warehouse, office, or other physical location in Arizona, that purchase is subject to Arizona sales tax. Amazon, for example, collects Arizona sales tax on most items because it has fulfillment centers in the state.
If you buy from a seller with no physical presence in Arizona, the rule depends on the seller's total sales volume. Under federal law, sellers that ship more than $600,000 in goods nationwide in a year must collect sales tax in every state where they ship, including Arizona. Smaller sellers may not collect it, though Arizona law says you technically owe the tax anyway — most people don't pay it, and the state doesn't pursue individual buyers.
If you order something from out of state and pick it up in Arizona, you pay tax at pickup. If you order it and have it shipped to an address outside Arizona, then bring it back, you don't pay Arizona tax on that purchase.
Tax-exempt purchases and who qualifies
Certain organizations and people don't pay sales tax on specific purchases. Nonprofits registered with the state can buy items for their operations tax-free. Schools and government agencies buy tax-free. Resellers — people who buy items to resell them — don't pay tax on their inventory purchases if they have a resale certificate.
If you're a reseller, you need an Arizona Resale Certificate from the Department of Revenue. You show this certificate to your supplier instead of paying tax. You then collect tax from your customers when you sell the item. This prevents the same item from being taxed twice.
Individual shoppers don't get a blanket exemption. You pay tax on what you buy, even if you plan to resell it later, unless you have a resale certificate in place before you purchase.
How to find the sales tax rate for your location
The Arizona Department of Revenue maintains a tax rate lookup tool on its website. Enter your street address, city, and ZIP code, and it shows you the combined state and local rate for that location. This is the most accurate way to know what you'll pay.
You can also call the Department of Revenue at 602-255-3381 and ask for the rate in your area. They can tell you the breakdown between state tax, county tax, and city tax if you need that detail.
If you're a business owner collecting tax, you need to know your rate and register with the state. The Department of Revenue sends you a tax license, and you collect and remit tax monthly or quarterly depending on your volume.
Frequently Asked Questions
Does Arizona tax groceries?
No. Unprepared food — items you take home and cook — is not taxed in Arizona. This includes meat, produce, bread, and canned goods. Prepared food, including restaurant meals, takeout, and deli items ready to eat, is taxed at the full rate.
What's the difference between state and local sales tax?
The state collects 5.6 percent and uses it for statewide programs. Your county and city collect their own rates and use that money locally. You pay both, and the total appears on your receipt as one line item labeled "tax."
Do I pay sales tax if I buy something online from another state?
If the seller has a physical location in Arizona or meets federal sales volume thresholds, yes. If the seller has no Arizona presence and is below the federal threshold, they may not collect it, though Arizona law says you owe it. Most individual buyers don't report this on their taxes.
Can I get a refund of sales tax I already paid?
No. Sales tax is final once you pay it. If you return an item and get a refund, the store refunds the tax as part of the total. You don't file for a separate tax refund with the state.
Are services taxed in Arizona?
Most services are not taxed. A haircut, plumbing repair, or car wash is not subject to sales tax. However, if the service includes a product — like paint for a painting job — the product portion may be taxed depending on how the business invoices it.