Phoenix Sales Tax Rate and What It Covers

The combined sales tax rate in Phoenix is 8.6% as of 2024. This rate is made up of the Arizona state sales tax of 5.6% plus the Maricopa County tax of 0.7% and the City of Phoenix tax of 2.3%. When you buy something in Phoenix, the seller adds this percentage to your purchase price at checkout.

Sales tax in Phoenix applies to most goods you buy in stores, including clothing, electronics, groceries, and household items. However, some items are taxed differently or not taxed at all. Unprepared food sold in grocery stores—like raw vegetables, meat, and bread—is not subject to sales tax. Prepared food from restaurants, bakeries, and deli counters is taxed at the full rate.

Services are generally not taxed in Arizona, which means you do not pay sales tax on haircuts, car repairs, or plumbing work. Digital products and subscriptions also typically avoid sales tax, though this can vary depending on how the vendor classifies the product.

Key Takeaways

  • Phoenix's combined sales tax rate is 8.6%, made up of state, county, and city taxes.
  • Unprepared food from grocery stores is not taxed, but prepared food from restaurants and delis is taxed at the full rate.
  • Services like haircuts, repairs, and professional work are not subject to sales tax in Arizona.
  • The sales tax rate can differ slightly in other Arizona cities and towns because each municipality sets its own local rate.
  • Businesses collect and remit sales tax to the state, so the tax is included in the final price you see at checkout.

How the 8.6% Rate Breaks Down

The 8.6% sales tax in Phoenix comes from three separate layers of government. The Arizona state government collects 5.6%, which is the baseline tax that applies everywhere in the state. On top of that, Maricopa County adds 0.7%, and the City of Phoenix adds 2.3%. Each of these entities uses the tax revenue for different purposes—the state for general services, the county for county-level programs, and the city for Phoenix-specific infrastructure and services.

If you shop in a different Arizona city, your rate will be different. For example, Tempe has a combined rate of 8.35%, while Scottsdale is 8.725%. Even within Maricopa County, rates vary by city. This is why the same item might cost slightly different amounts in sales tax depending on where you buy it in the Phoenix metro area.

Items That Are Not Taxed in Phoenix

Groceries are the biggest category of untaxed purchases in Phoenix. Raw meat, produce, dairy, bread, and other unprepared foods from supermarkets do not have sales tax added. This applies whether you shop at a large chain or a small market. The rule is straightforward: if you could cook it at home, it is not taxed.

The line between taxed and untaxed food can be confusing at the register. A rotisserie chicken from the grocery store deli is taxed because it is prepared. A raw chicken breast is not. A bakery cookie is taxed. A loaf of bread is not. When in doubt, the cashier can tell you whether an item is taxed before you pay.

Prescription medications are also not taxed in Arizona. Over-the-counter medicines like cold medicine and pain relievers are taxed, but anything you need a prescription for is exempt. You will see this difference on your receipt.

Items and Services That Are Taxed

Most goods sold in stores are taxed at the full 8.6% rate in Phoenix. Clothing, shoes, electronics, furniture, toys, and household goods all carry sales tax. Gasoline at the pump is taxed. Alcohol and tobacco products are taxed, though they may also have additional state excise taxes on top of the sales tax.

Prepared food is taxed, which includes anything you buy ready to eat: restaurant meals, pizza, sandwiches from a deli counter, coffee from a café, and items from a food truck. If the business prepared it or heated it for you, sales tax applies. Vending machine snacks are also taxed.

Services are generally not taxed, but there are exceptions. Repair services, haircuts, and professional services like accounting or legal work are not taxed. However, some service-related items can be taxed—for example, if you buy a haircut and also purchase shampoo at the salon, the shampoo is taxed but the haircut is not.

Tax-Free Shopping Days and Special Situations

Arizona does not have an annual statewide tax-free shopping day like some states do. However, individual retailers sometimes run their own promotions where they absorb the sales tax for customers on specific dates. These are retailer-specific deals, not government programs, so you need to check with individual stores to see if they are running a promotion.

If you are buying items for resale—meaning you plan to sell them to customers—you may not pay sales tax if you have a reseller permit from the Arizona Department of Revenue. This is for business owners, not individual shoppers. The business owner collects sales tax from customers and remits it to the state instead of paying it themselves.

How Sales Tax Appears on Your Receipt

When you check out at a store in Phoenix, the cashier or register shows you the subtotal, then adds the 8.6% sales tax, and gives you a final total. On your receipt, you will see a line that says "Tax" or "Sales Tax" with the amount in dollars and cents. This makes it straightforward to see exactly how much tax you paid on your purchase.

Online purchases are more complicated. If you order from a retailer that has a physical location in Arizona, they must collect sales tax. If you order from a retailer with no Arizona presence, they typically do not collect sales tax at checkout, though Arizona law technically requires you to pay "use tax" on those purchases when you file your state taxes—most individual shoppers do not do this, but businesses are expected to track and report it.

Frequently Asked Questions

Is sales tax the same everywhere in Arizona?

No. Every city and town in Arizona sets its own local sales tax rate on top of the 5.6% state rate. Phoenix is 8.6%, but Tempe is 8.35% and Scottsdale is 8.725%. If you shop near the border between cities, the rate depends on which city's jurisdiction the store is in.

Do I pay sales tax on groceries in Phoenix?

No, not on unprepared food. Raw meat, produce, bread, and dairy from a grocery store are not taxed. Prepared food—like rotisserie chicken, deli sandwiches, or bakery items—is taxed at 8.6%.

Why is prepared food taxed but groceries are not?

Arizona law treats unprepared food as a necessity and exempts it from tax. Prepared food is considered more like a restaurant meal or service, so it is taxed. This is why a loaf of bread costs less in tax than a bakery cookie, even though both are food.

Do I have to pay sales tax on online orders?

It depends on the retailer. If the company has a store or warehouse in Arizona, they must collect sales tax. If they have no Arizona presence, they usually do not collect it at checkout, though Arizona technically requires you to pay use tax on those purchases yourself.

Are prescription drugs taxed in Phoenix?

No. Prescription medications are exempt from sales tax in Arizona. Over-the-counter medicines like aspirin or cold medicine are taxed at the full rate.