Arizona sales tax is a tax on most goods and some services that you pay at the point of sale

Arizona's statewide sales tax rate is 5.6 percent. When you buy something in a store or online, this percentage is added to the price. However, the total tax you actually pay depends on where you are in Arizona—cities and counties add their own local sales taxes on top of the state rate, so your final bill varies by location.

The Arizona Department of Revenue collects and administers the state portion. Local jurisdictions—cities, towns, and counties—collect their portions and use that money for schools, roads, and other services. If you live in Phoenix, for example, you pay the state 5.6 percent plus Phoenix's local rate. If you live in Flagstaff, you pay the state rate plus Flagstaff's local rate, which is different.

Key Takeaways

  • Arizona's statewide sales tax is 5.6 percent, but your total rate includes local taxes added by your city or county, making it higher depending on where you shop.
  • Most goods are taxable, including clothing, groceries, and household items, but some items like prescription medications and certain medical equipment are exempt.
  • Online purchases from out-of-state sellers are subject to Arizona sales tax if the seller has a physical presence in Arizona or meets certain sales thresholds.
  • You can find your exact local sales tax rate by entering your address on the Arizona Department of Revenue website or asking a retailer.

What items are taxed and what items are not

Most items you buy in Arizona are subject to sales tax. Clothing, groceries, household goods, electronics, and furniture all get taxed at your local rate. Services like haircuts, car repairs, and restaurant meals are also taxable in Arizona.

Some items are exempt from sales tax. Prescription medications are not taxed. Medical equipment prescribed by a doctor—such as wheelchairs, hearing aids, and diabetic supplies—is exempt. Certain food items bought for home consumption, like unprepared groceries, are not taxed, but prepared food from a restaurant or deli counter is. If you buy something for resale (you are a business), you can provide a resale certificate to avoid paying tax at purchase, then collect tax from your customers instead.

How local sales tax rates work across Arizona

Arizona cities and counties set their own local sales tax rates on top of the state 5.6 percent. This means the total rate you pay is different depending on your zip code. Phoenix's combined rate is different from Tucson's, which is different from Scottsdale's or any small town.

Local rates typically range from about 0.7 percent to 3.5 percent added to the state rate, though this varies. A city might use its local sales tax revenue for public transportation, libraries, or schools. A county might use it for sheriff services or road maintenance. The Arizona Department of Revenue publishes a complete list of all local rates by city and county on its website, organized by zip code.

If you shop near a city border, the rate depends on where the store is located, not where you live. If you live in one city but shop in a neighboring city, you pay that neighboring city's rate at checkout.

Sales tax on online and out-of-state purchases

Online purchases are subject to Arizona sales tax. If you buy something from an online retailer and have it shipped to an Arizona address, the seller should charge you Arizona sales tax—usually at the rate for your zip code. This applies whether the seller is based in Arizona or somewhere else.

However, not all online sellers collect Arizona sales tax. If a seller does not have a physical location in Arizona and does not meet certain sales thresholds, they may not be required to collect tax. In that case, Arizona law technically requires you to pay use tax—a tax on items you bring into Arizona or have shipped here—but most individual shoppers do not report this on their own. If you are unsure whether tax was charged, check your receipt or the seller's tax policy before checkout.

How to find your exact local sales tax rate

Your exact sales tax rate depends on your address. The easiest way to find it is to visit the Arizona Department of Revenue website and use their sales tax rate lookup tool. You enter your street address or zip code, and the tool shows you the combined state and local rate for that location.

You can also call a local retailer and ask them what the sales tax rate is in your area, or check your receipt from a recent purchase—the tax rate is usually printed there. If you are planning a large purchase and want to know the exact amount you will pay, finding your rate beforehand takes the guesswork out.

Who collects and where the money goes

Retailers collect sales tax at the point of sale and send it to the Arizona Department of Revenue and to local tax authorities. The state portion goes to the state general fund and is used for state services. The local portion goes to the city or county where the purchase happened and funds local services.

Businesses are responsible for collecting the correct amount, reporting it to the right jurisdiction, and sending the money in on time. If a business fails to collect or remit sales tax, the Arizona Department of Revenue can audit them and assess penalties. As a shopper, you do not have to track or report sales tax yourself—the retailer handles that.

Sales tax on specific situations

If you buy a car in Arizona, you pay sales tax on the purchase price. The tax is collected at the time of sale, and you need the receipt to register the vehicle with the Arizona Department of Transportation.

If you are a business owner buying inventory or equipment for resale, you can avoid paying sales tax by providing a resale certificate to the seller. You then collect tax from your customers and remit it yourself. If you are unsure whether you need a resale certificate, the Arizona Department of Revenue has information on their website about business tax obligations.

If you buy something out of state and bring it into Arizona, you may owe use tax on that item. Use tax is meant to level the playing field between in-state and out-of-state purchases. Most people do not track this on their own, but if you make large purchases out of state regularly, it is worth understanding how use tax works.

Frequently Asked Questions

Is groceries taxed in Arizona?

Unprepared groceries—items you buy at a supermarket to cook at home—are not taxed. But prepared food from a deli counter, restaurant, or food truck is taxed. If you are unsure whether something counts as prepared or unprepared, ask the cashier before checkout.

What is the difference between state and local sales tax?

State sales tax (5.6 percent) goes to the state government. Local sales tax is added by your city or county and goes to local services like schools and roads. You pay both, and the total is what appears on your receipt.

Do I have to pay sales tax on online purchases from other states?

If you buy from an out-of-state seller and have it shipped to Arizona, you should pay Arizona sales tax. Many large online retailers now collect this automatically. If they do not, use tax technically applies, though most individual shoppers do not report it themselves.

Can I get a refund on sales tax I already paid?

Sales tax refunds are rare and usually only happen if you return an item to the store where you bought it. The refund is handled at the point of return. If you paid tax on something you later found out was exempt, contact the retailer to discuss a refund.

Where do I find the sales tax rate for my zip code?

The Arizona Department of Revenue website has a sales tax rate lookup tool where you enter your address or zip code. You can also check a recent receipt from a local store, which usually shows the tax rate applied.