Arizona's statewide sales tax rate is 5.6 percent
Arizona's base sales tax rate is 5.6 percent, but the total tax you pay depends on your location. Most Arizona counties and cities add their own local sales taxes on top of the state rate, so your final tax can range from 7.35 percent to 10.725 percent depending on where you shop. The state rate itself has not changed since 2010, but local rates vary widely and shift when individual municipalities adjust their budgets.
When you see a price tag in an Arizona store, the amount shown does not include sales tax—the tax is added at checkout. This means a $10 item might cost you $10.56 to $10.73 or more, depending on your county and city. Understanding your local rate helps you budget accurately and know what to expect when you pay.
Key Takeaways
- Arizona's state sales tax is 5.6 percent, but your total tax rate includes county and city additions that vary by location.
- The lowest combined rate in Arizona is 7.35 percent (in some areas), and the highest reaches 10.725 percent in certain cities.
- Sales tax applies to most goods but not to unprepared food, prescription medications, or medical equipment.
- You can find your exact local rate by entering your address on the Arizona Department of Revenue website or asking a cashier.
How local taxes stack on top of the state rate
Arizona divides sales tax into three layers: the state rate (5.6 percent), county rates, and city rates. Each layer stacks on top of the others, so a resident of Phoenix pays the state 5.6 percent plus Maricopa County's rate plus Phoenix's city rate. A resident of Flagstaff pays the state 5.6 percent plus Coconino County's rate plus Flagstaff's city rate—which adds up to a different total.
County rates range from 0.5 percent to 2.5 percent depending on the county. City rates then add another 0.5 percent to 2.625 percent on top of that. This layering is why two Arizona cities just 30 miles apart can have noticeably different final tax rates. The Arizona Department of Revenue publishes a complete list of county and city rates, updated quarterly, so you can look up the exact rate for your address.
Some Arizona cities also impose special district taxes for transit, libraries, or other services, which can add another 0.1 percent to 0.5 percent to your bill. These are less common but do appear in certain neighborhoods. If you live near a city boundary, your rate can change based on which side of the line your purchase happens on.
What items are taxed and what are not
Most goods sold in Arizona are subject to sales tax, but several important categories are exempt. Unprepared food—groceries like bread, milk, vegetables, and meat—is not taxed. Prepared food from restaurants, bakeries, and deli counters is taxed. Prescription medications are not taxed, but over-the-counter medicines and vitamins are. Medical equipment prescribed by a doctor, such as wheelchairs or oxygen equipment, is also exempt.
Clothing and shoes are taxed in Arizona, unlike some other states. Services such as haircuts, repairs, and labor are generally taxed. Digital goods like e-books, streaming subscriptions, and downloaded software are taxed. If you are unsure whether a specific item is taxed, the Arizona Department of Revenue website has a searchable list, or you can ask the retailer before you buy.
Finding your exact local sales tax rate
The fastest way to find your exact rate is to visit the Arizona Department of Revenue's sales tax rate lookup tool on their website. You enter your street address, city, and ZIP code, and the tool shows you the combined state, county, and city rate for that location. The rate updates quarterly as municipalities adjust their taxes, so checking the official source gives you the current number rather than relying on an older figure.
If you do not have internet access or prefer to ask in person, call your city or county tax assessor's office—they can tell you the rate over the phone in under a minute. Many retailers also keep a printed rate sheet at the register or can tell you the rate if you ask. Because rates can shift, especially in cities that adjust their budgets annually, checking before a large purchase is worth the effort.
Sales tax on online and out-of-state purchases
If you order something online from an Arizona retailer, Arizona sales tax applies based on where the item ships to, not where the seller is located. If you order from an out-of-state retailer and have it shipped to Arizona, you may owe Arizona sales tax depending on the seller's size and whether they have a physical presence in Arizona. Large online retailers like Amazon now collect Arizona sales tax on most orders shipped to Arizona addresses.
If a retailer does not collect sales tax at checkout, you may technically owe "use tax" to Arizona when you file your state income tax return—though most individual shoppers do not report this. The rule is complex and depends on the retailer's revenue and whether they have nexus (a legal connection) to Arizona. For practical purposes, assume that major retailers will collect the tax, and smaller sellers may not.
How sales tax affects your budget and purchases
Sales tax is a significant cost that compounds on large purchases. A $1,000 appliance in a high-tax Arizona city (10.725 percent) costs you $107.25 in tax alone. Knowing your rate helps you budget accurately and understand the true cost of big-ticket items like furniture, electronics, or vehicles. Some people compare prices between cities or counties when making major purchases, since the tax difference can add up to real money.
Sales tax also affects how much you need to set aside for monthly expenses. If you budget $500 for groceries, remember that prepared foods and non-food items in that category will be taxed, while raw ingredients will not. For business owners and self-employed people, understanding which items are taxable is important for pricing and record-keeping.
Frequently Asked Questions
What is the sales tax in Phoenix?
Phoenix's combined sales tax rate is 8.6 percent: the state rate of 5.6 percent plus Maricopa County's 0.5 percent plus Phoenix's city rate of 2.5 percent. This rate can shift if the city or county adjusts their portion, so check the Arizona Department of Revenue website to confirm the current rate.
Do I pay sales tax on groceries in Arizona?
No, unprepared groceries like bread, milk, vegetables, and meat are not taxed. However, prepared foods from deli counters, bakeries, and restaurants are taxed. Items like candy, soda, and hot food are also taxed because they are considered prepared foods.
Is clothing taxed in Arizona?
Yes, clothing and shoes are subject to Arizona sales tax. Unlike some states that exempt clothing, Arizona taxes all apparel at the full local rate.
Do I owe Arizona sales tax on items I buy online from out-of-state sellers?
It depends on the seller. Large retailers like Amazon collect Arizona sales tax on most orders shipped to Arizona. Smaller sellers may not. If tax is not collected, you may owe use tax to Arizona, though most individual shoppers do not report it on their tax returns.
Can sales tax rates change during the year?
Yes, cities and counties can adjust their rates, though changes usually happen once a year during budget season. The Arizona Department of Revenue updates rates quarterly, so check their website if you need the current rate for your address.