Arizona's statewide sales tax is 5.6%, but your total rate depends on where you shop
Arizona imposes a base sales tax of 5.6% on most goods and services. However, that is not the rate you pay at checkout. Counties and cities in Arizona add their own local sales taxes on top of the state rate, so your total can range from 7.73% to 10.725% depending on your location. A purchase that costs $100 in one Arizona city might cost a different amount in another city just a few miles away.
The state rate of 5.6% has been in place since 1983 and funds state programs. Local rates vary because each county and municipality sets its own tax to fund schools, transportation, public safety, and other services. When you buy something in Arizona, you pay the state rate plus every local rate that applies to your address — not where the store is located, but where the item is delivered or picked up.
Key Takeaways
- Arizona's state sales tax is 5.6%, but combined with local taxes, your total rate ranges from 7.73% to 10.725% depending on your county and city.
- Local sales taxes are set by individual counties and cities, so rates differ significantly even between nearby communities.
- The tax you pay is based on the delivery or pickup location, not the store's location.
- Food, prescription medications, and medical equipment are generally exempt from Arizona sales tax, but prepared foods and over-the-counter drugs are taxed.
- You can find your exact local rate by entering your address on the Arizona Department of Revenue website or asking a retailer.
How local taxes stack on top of the state rate
When you check out in Arizona, the sales tax you see is the sum of multiple layers. The state collects 5.6%. Then your county adds a rate (which varies from county to county), and then your city or town adds its own rate. Some special districts — such as those for transit or tourism — may add a small amount as well. All of these stack together.
Maricopa County, which includes Phoenix, has a combined rate of 8.6% in most of Phoenix proper, but rates in Maricopa County cities range from 8.1% to 8.95% depending on the specific city. Pima County, which includes Tucson, has rates ranging from 8.1% to 8.6%. Smaller counties like Gila or Cochise have lower combined rates, sometimes as low as 7.73%. The variation exists because each locality votes on whether to impose additional local tax and at what rate.
What is and is not taxed in Arizona
Arizona sales tax applies to most tangible goods — clothing, electronics, furniture, and household items. It also applies to many services, including repairs, haircuts, and certain professional services. However, some items are exempt.
Food purchased for home consumption is not taxed in Arizona. This means groceries — bread, milk, vegetables, meat — are tax-free. Prescription medications are also exempt. Medical equipment such as wheelchairs, crutches, and hearing aids are not taxed. However, prepared foods — restaurant meals, deli items, hot foods from a grocery store — are taxed. Over-the-counter medications like cold medicine or pain relievers are taxed as well.
Services like medical care, dental work, and legal information are generally not subject to sales tax. However, labor charges for repairs to tangible goods — such as fixing a car or repairing a phone — are taxed in Arizona.
Finding your exact local sales tax rate
The Arizona Department of Revenue maintains a sales tax rate lookup tool on its website. You enter your street address, and the tool returns your exact combined rate, including state, county, city, and any special district taxes. This is the most reliable way to know what you will pay, because rates can differ by block in some areas where multiple jurisdictions overlap.
You can also call the Arizona Department of Revenue at 602-255-3381 or contact your city or county assessor's office. Many retailers, especially large chains, can also tell you the rate for a specific address. If you are making a large purchase or running a business, it is worth confirming the rate before you finalize the transaction, because the difference between 8.1% and 8.95% adds up quickly on expensive items.
How Arizona sales tax differs from income tax
Arizona sales tax and Arizona income tax are separate systems that fund different things. Sales tax is a point-of-sale tax collected by retailers and sent to the state and local governments. Income tax is withheld from paychecks or paid when you file your tax return, and it funds state operations and schools.
Arizona's state income tax rates range from 2.55% to 4.5% depending on your income level, and they are progressive — higher earners pay a higher percentage. Sales tax, by contrast, is flat: everyone in the same location pays the same rate regardless of income. A person earning $30,000 per year and a person earning $300,000 per year pay the same 8.6% sales tax on a $100 purchase in Phoenix. This is why sales tax is sometimes called a regressive tax — it takes a larger percentage of income from lower-earning households.
Sales tax on online and out-of-state purchases
If you order something online from an Arizona retailer and have it shipped to an Arizona address, Arizona sales tax applies based on your delivery address. If you order from an out-of-state retailer, the rules depend on whether that retailer has a physical presence in Arizona or meets certain sales thresholds. As of 2021, most large online retailers — including Amazon, Walmart, and Target — collect Arizona sales tax on orders shipped to Arizona addresses, even if the retailer is based elsewhere.
If an out-of-state retailer does not collect Arizona sales tax, you may owe use tax on the purchase when you file your Arizona tax return. Use tax is Arizona's way of capturing tax on purchases that escape the sales tax. However, most individual consumers do not report use tax, and enforcement is limited. The practical effect is that some out-of-state purchases escape taxation, which is why Arizona and other states have pushed for rules requiring all online retailers to collect sales tax.
Frequently Asked Questions
Does Arizona tax groceries?
No. Food purchased for home consumption — including produce, meat, dairy, and packaged goods from a grocery store — is not subject to Arizona sales tax. However, prepared foods such as restaurant meals, deli items, and hot foods from a grocery store are taxed.
What is the sales tax rate in Phoenix?
Phoenix's combined sales tax rate is 8.6%, which includes the 5.6% state rate plus local taxes. However, rates in surrounding Maricopa County cities vary from 8.1% to 8.95%, so it is worth checking your specific address on the Arizona Department of Revenue website.
Do I pay sales tax on services in Arizona?
Some services are taxed and some are not. Medical, dental, and legal services are generally exempt. However, labor charges for repairs — such as car repair or phone repair — are taxed. Haircuts and salon services are taxed. The rule depends on the specific service, so ask the provider if you are unsure.
Is clothing taxed in Arizona?
Yes. Clothing is subject to Arizona sales tax at your local combined rate. There is no clothing exemption in Arizona, unlike some other states.
Do I owe tax on purchases from out-of-state websites?
If the retailer collects Arizona sales tax, it will be added to your order. Most large retailers now do this. If the retailer does not collect it, you may owe use tax on your Arizona tax return, though enforcement is limited for individual consumers.