Arizona sales tax is a tax on most goods and some services you buy, added to your bill at checkout
Arizona's statewide sales tax rate is 5.6 percent. When you buy something in a store or online, that percentage gets added to the price. However, the total tax you actually pay depends on where you live, because cities and counties in Arizona add their own local sales taxes on top of the state rate. A purchase in Phoenix will have a different total tax than the same purchase in Tucson or a small town, even though the state portion stays at 5.6 percent.
The combined rate—state plus local—ranges from about 7.7 percent to over 10 percent depending on your location. You will see the final total on your receipt, but understanding how the tax breaks down helps you know what portion goes where and why rates differ between Arizona cities.
Key Takeaways
- Arizona's state sales tax is 5.6 percent, but your total tax rate also includes local taxes added by your city or county.
- Combined sales tax rates across Arizona range from roughly 7.7 percent to over 10 percent depending on where you shop.
- Most physical goods are taxable, but groceries, prescription medications, and medical equipment are generally exempt.
- Online purchases from out-of-state sellers are subject to the same sales tax as in-store purchases if the seller has a physical presence in Arizona.
What items are taxed and what are exempt
Most goods you buy in Arizona are subject to sales tax—clothing, electronics, furniture, and household items all get taxed. Services like haircuts, car repairs, and plumbing work are also taxable in Arizona, which sets it apart from some other states that do not tax services.
Some purchases are exempt from sales tax. Groceries—items like milk, bread, vegetables, and meat—are not taxed. Prescription medications filled by a pharmacist are exempt. Medical equipment prescribed by a doctor, such as wheelchairs, hearing aids, and oxygen equipment, is also exempt. Over-the-counter medications like aspirin or cold medicine are taxable, but prescription drugs are not.
Clothing and footwear are taxable in Arizona, unlike some states that exempt them. If you are unsure whether a specific item is taxed, your receipt will show the tax amount, or you can ask the cashier before you buy.
How local taxes are added to the state rate
Arizona cities and counties have the power to add their own sales taxes on top of the 5.6 percent state rate. These local taxes fund schools, public transportation, libraries, and other community services. Because each city and county sets its own rate, the total you pay varies by location.
For example, Phoenix has a combined rate of about 8.6 percent (5.6 percent state plus 3 percent local), while Tucson's combined rate is roughly 8.45 percent. Smaller towns may have lower or higher local rates. When you move to a different city or county in Arizona, or when you shop in a different location, the sales tax rate changes.
Your receipt always shows the total tax charged. If you want to know the breakdown between state and local portions, you can subtract 5.6 percent from the total rate shown, and the remainder is the local tax for that area.
Sales tax on online and mail orders
Online purchases are subject to Arizona sales tax if the seller has a physical presence in the state—meaning they have a store, warehouse, office, or employee in Arizona. Large online retailers like Amazon collect and send Arizona sales tax on orders shipped to Arizona addresses because they have warehouses and operations in the state.
If you order from a small out-of-state seller with no Arizona location, they are not required to collect Arizona sales tax at checkout. However, Arizona law requires you to pay use tax on those purchases when you file your state income tax return. In practice, most individual shoppers do not report use tax, but it is technically owed. The rate and exemptions for use tax match sales tax—groceries and prescriptions are still exempt.
When you buy from an online seller, check your receipt or confirmation email to see whether sales tax was added. If it was not and the seller has no Arizona presence, you would owe use tax on that purchase.
Who collects and where the money goes
The seller—whether a store, restaurant, or online business—collects sales tax from you at the point of sale and holds it temporarily. They then send the collected tax to the Arizona Department of Revenue, which splits it between the state and the local jurisdiction where the purchase occurred.
The state portion (5.6 percent) goes into Arizona's general fund and supports state services. The local portion goes to the city or county where you made the purchase and funds local priorities like schools, roads, and public safety. This is why sales tax rates are higher in some areas—communities vote to add local taxes to pay for specific projects or services.
You do not file anything or take any action related to sales tax as a shopper. The seller handles all collection and reporting to the state. Your only interaction with sales tax is seeing it added to your bill.
Sales tax on specific purchases
Restaurant meals are fully taxable in Arizona. When you eat at a restaurant or buy prepared food from a deli or bakery, sales tax applies to the full bill. Tip is not taxed, but the food and beverages are.
Alcohol purchases—beer, wine, and liquor—are subject to sales tax plus an additional excise tax that varies by type. The excise tax is separate from sales tax and is set by the state.
Vehicle purchases are taxable, and the sales tax is calculated on the purchase price. If you trade in a vehicle, the sales tax is applied to the net amount (purchase price minus trade-in value), not the full purchase price.
Gasoline is taxed with both sales tax and a state fuel excise tax. The pump price you see usually includes both, so you do not pay sales tax on top of an already-taxed price—it is built into the total.
How to find the sales tax rate for your area
The Arizona Department of Revenue maintains a list of current sales tax rates by city and county on its website. You can search by your zip code or city name to find the combined state and local rate for your location.
If you are moving to a new city in Arizona or shopping in an unfamiliar area, you can look up the rate before you go. Tax rates can change when cities or counties vote to add or remove local taxes, so checking the official source is more reliable than remembering a rate from the past.
Your receipt always shows the exact tax rate that was applied to your purchase, so you can verify it matches your location.
Frequently Asked Questions
Is sales tax the same everywhere in Arizona?
No. The state rate is 5.6 percent everywhere, but cities and counties add their own local taxes. Combined rates range from about 7.7 percent to over 10 percent depending on where you shop. Two stores in different Arizona cities will charge different total sales tax on the same item.
Do I have to pay sales tax on groceries?
No. Groceries—fresh produce, meat, dairy, bread, and other food items you cook at home—are exempt from sales tax in Arizona. Prepared foods from restaurants or deli counters are taxed, but raw ingredients are not.
Why is my online order taxed differently than I expected?
The seller calculates tax based on the delivery address you provide. If you ordered to a different city or county than where you live, the tax rate for that delivery location applies. Also, some items like groceries may be exempt even in online orders, which can lower the total tax.
Do I owe sales tax on items I buy from someone privately, like a used car from a friend?
Private sales between individuals are generally not subject to sales tax. However, if you buy a used vehicle from a dealer, sales tax applies. For private transactions, check with the Arizona Department of Revenue if you are unsure about a specific item.
What happens if a business does not collect sales tax?
The business is required by law to collect and send sales tax to the state. If they do not, that is a violation they must correct. As a customer, you are not responsible for the business's failure to collect—you pay what they charge you at checkout.