Arizona has a state sales tax of 5.6 percent, plus local taxes that vary by county and city

Yes, Arizona charges sales tax. The state's base rate is 5.6 percent on most purchases. However, your total tax at checkout will be higher because counties and cities add their own local taxes on top of the state rate. The combined rate you actually pay depends on where you shop — it ranges from about 7.6 percent in some areas to over 11 percent in others.

Sales tax in Arizona applies to tangible goods: clothing, groceries, electronics, furniture, and most other items you can touch and take home. Services like haircuts, car repairs, and plumbing are generally not taxed. Some items like prescription medications and certain foods are exempt from tax entirely.

Key Takeaways

  • Arizona's state sales tax is 5.6 percent, but your actual tax rate includes county and city additions that can raise it to 7.6 percent or higher.
  • The tax you pay depends on the location where you make the purchase, not where you live, so the same item costs different amounts in different cities.
  • Groceries, prescription drugs, and medical equipment are exempt from Arizona sales tax, but prepared foods and candy are taxed.
  • Online purchases from out-of-state sellers may not include Arizona tax at checkout, but you may owe it when the item arrives depending on the seller's location and size.

How local taxes are added to the state rate

Each Arizona county adds its own sales tax on top of the 5.6 percent state rate. Maricopa County (which includes Phoenix) adds 0.7 percent. Pima County (Tucson) adds 1.25 percent. Coconino County (Flagstaff) adds 1.25 percent. Other counties have different rates. Once you know your county's rate, individual cities may add even more — Phoenix adds an additional 2.3 percent, Tucson adds 2.0 percent, and smaller cities vary.

This means a purchase in Phoenix carries a combined rate of 5.6 (state) + 0.7 (Maricopa County) + 2.3 (Phoenix city) = 8.6 percent. The same item bought in Flagstaff would be taxed at 5.6 + 1.25 + the city's local rate. Always check your specific city's rate before budgeting for a large purchase, because the difference between 7.6 percent and 11 percent adds up quickly on expensive items.

What is and is not taxed in Arizona

Unprepared groceries — raw meat, vegetables, bread, milk, eggs — are not taxed in Arizona. Prescription medications are exempt. Medical devices like wheelchairs, hearing aids, and diabetic supplies are not taxed. Diapers and feminine hygiene products are not taxed. However, prepared foods from a deli counter, restaurant meals, candy, and soft drinks are all taxed at the full rate.

Services are generally not subject to sales tax. A haircut, dental work, car repair, plumbing, or electrician's visit is not taxed. However, if you buy a tangible product as part of that service — like a bottle of shampoo at a salon or a replacement part at a repair shop — that product portion is taxed. Labor is not; goods are.

Sales tax on online and out-of-state purchases

When you order from a large online retailer like Amazon, the company usually collects Arizona sales tax at checkout if they have a physical presence in the state or meet certain sales thresholds. The tax rate applied is based on the shipping address you provide, not where the company is located. If tax is collected, it appears as a line item in your order total.

Small out-of-state sellers may not collect Arizona tax at checkout. In those cases, you are technically responsible for reporting and paying the tax yourself when you file your Arizona tax return, though most individual purchases are not tracked this way. If you are unsure whether tax was collected on an online purchase, check your order confirmation email — it will show any tax charged.

How sales tax affects your budget for large purchases

Sales tax is not included in the price tag on items in Arizona stores. The price you see is the pre-tax price. This means a $100 item will cost you $108.60 in Phoenix (with 8.6 percent tax) or $111 in a higher-tax city. For furniture, appliances, or vehicles, the tax can add hundreds of dollars to your final bill.

When budgeting for a purchase, multiply the pre-tax price by your local tax rate to find the true cost. If you are buying something in a different city than where you live, use that city's rate instead. Some people time large purchases to buy in lower-tax areas, though the savings are usually modest unless the purchase is very expensive.

Tax-free shopping days and exemptions

Arizona does not have an annual tax-free shopping day like some other states do. However, certain organizations and individuals may be exempt from sales tax. Nonprofits, government agencies, and Native American tribes can sometimes purchase items tax-free if they provide proper documentation. Resellers who hold an Arizona Resale Certificate can buy inventory without paying tax, then collect tax from their customers.

If you believe you may have access to for an exemption, contact the Arizona Department of Revenue. They maintain a list of exempt organizations and can provide the forms and documentation needed. Most individual shoppers do not may have access to for exemptions — the main ones are for businesses and registered nonprofits.

Frequently Asked Questions

Do I pay sales tax on groceries in Arizona?

Unprepared groceries like raw vegetables, meat, bread, and milk are not taxed. Prepared foods from a deli, restaurant meals, candy, and drinks are taxed at the full rate. Check your receipt — it will show which items were taxed and which were not.

What is the sales tax rate in my city?

The Arizona Department of Revenue publishes a complete list of all county and city tax rates on their website. Search for your city name to find the exact combined rate. Rates change occasionally, so check the official source rather than relying on an older rate you may have heard.

Do I owe Arizona sales tax on items I buy while traveling out of state?

No. You owe sales tax in the state where you make the purchase. If you buy something in California, you pay California tax. If you bring it home to Arizona, you do not owe additional Arizona tax on that item.

Can I return an item and get the sales tax refunded?

Yes. When you return an item for a refund, the store refunds the full amount including tax. If you exchange an item for a different one, the tax is recalculated based on the new item's price. Keep your receipt to show the tax amount if the store questions the refund.

Is there sales tax on used items or secondhand purchases?

Sales tax applies to used goods sold by businesses, including used car dealers and secondhand stores. Private sales between individuals are not taxed. If you sell your used car to a friend, no tax is owed. If you sell it to a used car dealer, they collect tax when they resell it.