Arizona Sales Tax Rates and What They Apply To

Arizona's statewide sales tax rate is 5.6 percent

Arizona charges a 5.6 percent state sales tax on most retail purchases. This is the base rate that applies everywhere in the state. However, your total sales tax bill is usually higher because counties and cities add their own local taxes on top of the state rate.

When you buy something in Arizona, you pay the state 5.6 percent plus whatever your county and city have added. A purchase in Phoenix, for example, is taxed at the state rate plus Maricopa County's rate plus Phoenix's city rate. The same item bought in Flagstaff would have a different total because Coconino County and Flagstaff have their own rates.

Total sales tax rates across Arizona range from about 7.65 percent to over 10 percent depending on where you shop. There is no way to know your exact local rate without knowing your specific city and county.

Key Takeaways

• Arizona's state sales tax is 5.6 percent, but your actual tax rate includes county and city additions that vary by location.
• Total sales tax in Arizona ranges from roughly 7.65 percent to over 10 percent depending on your city and county.
• Most goods are taxed, but groceries, prescription medications, and medical equipment are generally exempt.
• You can find your exact local rate by entering your address into the Arizona Department of Revenue's tax rate lookup tool.

How local taxes add to the state rate

Every Arizona county adds a county sales tax on top of the 5.6 percent state rate. Maricopa County (which includes Phoenix) adds 0.7 percent. Pima County (Tucson) adds 0.8 percent. Coconino County (Flagstaff) adds 1.25 percent. These rates vary across all 15 counties in the state.

Cities then add their own tax on top of both the state and county rates. Phoenix adds 2.3 percent. Tucson adds 2.0 percent. Flagstaff adds 2.25 percent. A small town might add 1 percent or nothing at all. This is why the same product costs different total tax in different cities.

To find your exact combined rate, use the Arizona Department of Revenue's Sales Tax Rate Lookup on their website. Enter your street address and it will show you the state rate, your county rate, and your city rate added together.

What is and is not taxed in Arizona

Most items you buy in stores are subject to Arizona sales tax. Clothing, electronics, furniture, and household goods are all taxed. Services like haircuts, car repairs, and restaurant meals are taxed. Prepared food sold hot or ready to eat is taxed.

Some purchases are exempt from sales tax. Unprepared groceries — bread, milk, vegetables, meat from the butcher counter — are not taxed. Prescription medications are not taxed. Medical equipment prescribed by a doctor is not taxed. Items sold for resale by a business are not taxed if the business has a resale certificate.

The line between taxed and untaxed can be unclear. A sandwich from a deli counter is taxed because it is prepared food. A loaf of bread from the shelf is not. A bottle of vitamins sold over the counter is taxed. A prescription medication is not. When in doubt, ask the cashier or check your receipt.

Sales tax on online and out-of-state purchases

If you buy something online from an Arizona seller, Arizona sales tax applies. If you buy from an out-of-state seller and have it shipped to Arizona, the seller may or may not charge you tax depending on their size and where they are based. Large retailers like Amazon and Walmart charge Arizona sales tax on orders shipped to Arizona addresses. Smaller sellers may not.

You are technically responsible for paying tax on untaxed out-of-state purchases through a form called a use tax return, but most individual shoppers do not file this. It is primarily enforced for business purchases.

Finding your exact local sales tax rate

The fastest way to find your exact rate is the Arizona Department of Revenue's online lookup tool. Go to their website, select "Sales Tax Rate Lookup," and enter your street address. The tool will show you the combined state, county, and city rate for that location.

You can also call your city or county assessor's office and ask for the current sales tax rate. They can tell you the exact percentage and explain what is taxed in your area. Some cities post their rates on their official websites as well.

If you are a business owner, the Arizona Department of Revenue also publishes a complete list of all county and city rates. This list is updated when rates change, which happens occasionally as cities and counties adjust their budgets.

When sales tax rates change

Arizona's state sales tax rate of 5.6 percent has been in place since 1983 and does not change often. County and city rates, however, change more frequently. A city might raise its rate to fund schools or infrastructure, or lower it to attract business. These changes usually take effect on the first day of a month.

If you are planning a large purchase, it is worth checking your current local rate a day or two before you buy, especially if you live near a city border. Buying just across the line into a lower-tax area can save money on big-ticket items, though this is only practical for items you can transport yourself.

Frequently Asked Questions

Is Arizona's sales tax higher or lower than other states?

Arizona's combined state and local rate of 7.65 to over 10 percent is roughly in the middle compared to other states. Some states have no sales tax at all. Others have rates above 10 percent. The exact comparison depends on which Arizona city you compare to which other state.

Do I pay sales tax on used items?

Used items sold by a business are subject to sales tax in Arizona. A used car sold by a dealer is taxed. A used book sold by a bookstore is taxed. Items sold between individuals (like a private car sale or a garage sale) are generally not taxed.

What about sales tax on vehicles?

Vehicle sales are taxed in Arizona, but the tax is calculated on the purchase price and collected at the time of registration with the Arizona Department of Transportation, not at the dealership. The rate is your local sales tax rate applied to the vehicle's selling price.

Can I get a sales tax refund if I move out of Arizona?

No. Sales tax is final once you purchase an item. If you move out of state, you cannot get a refund on past purchases. However, you do not owe Arizona sales tax on purchases made after you move, as long as they are shipped to your new address outside Arizona.

Do nonprofits and government agencies pay sales tax?

Nonprofits and government agencies are generally exempt from paying sales tax on their purchases if they provide documentation of their status. They must register with the Arizona Department of Revenue and provide a tax exemption certificate to the seller.