Arizona has a statewide sales tax of 5.6 percent, plus local taxes that vary by county and city
Arizona charges sales tax on most goods you buy in the state. The base rate is 5.6 percent statewide, but the total tax you pay depends on where you shop — cities and counties add their own local taxes on top. In some areas, the combined rate reaches 10 percent or higher. If you buy something in Arizona, the tax is included in the final price at checkout.
The state does not tax services the way it taxes products. A haircut, a plumbing repair, or a doctor visit is not subject to Arizona sales tax. But the moment a service involves a physical product — like a haircut followed by the sale of shampoo — the product portion is taxed and the service portion is not.
Food you cook at home is not taxed. Groceries like milk, bread, and vegetables are exempt. But prepared food — restaurant meals, deli sandwiches, hot pizza — is taxed at the full rate.
Key Takeaways
- Arizona's base sales tax is 5.6 percent statewide, but your actual rate includes local city and county taxes that range from zero to several percentage points.
- Groceries and unprepared food are not taxed, but restaurant meals and prepared foods from delis or bakeries are taxed at the full combined rate.
- Services like haircuts, repairs, and medical visits are not taxed, but products sold during those services are.
- You can find your exact local tax rate by entering your address on the Arizona Department of Revenue website or asking a retailer in your area.
How local taxes stack on top of the state rate
The 5.6 percent state rate is the floor. On top of that, your city adds a local tax (usually between 1.5 and 3 percent) and your county may add another layer. Phoenix, for example, adds 2.3 percent to the state rate, bringing the total to 8.6 percent. Flagstaff adds 2.65 percent, for a total of 8.25 percent. Tucson adds 2.3 percent, for a total of 8.6 percent.
These rates change when cities or counties vote to raise or lower them, so the exact number in your area may have shifted since this was written. The Arizona Department of Revenue publishes a current list of all city and county rates, and most retailers' checkout systems calculate the correct rate automatically based on your address.
If you shop online and the seller ships to Arizona, you may or may not see tax added at checkout — that depends on whether the seller has a physical location in Arizona or meets other state thresholds. If tax was not charged, Arizona law requires you to report and pay the tax yourself on your state tax return, though most individual shoppers do not.
What is and is not taxed in Arizona
Clothing is taxed. Shoes are taxed. A winter coat is taxed. But prescription medications are not taxed, and neither are over-the-counter drugs like aspirin or cold medicine. Medical equipment like wheelchairs, crutches, and hearing aids is not taxed.
Gasoline is taxed, but the tax is built into the pump price — you do not see it as a separate line item. Electricity and natural gas for your home are taxed. Water is taxed. Internet service is taxed.
Newspapers and magazines are not taxed. Books are not taxed. But if you buy a book as part of a bundle that includes other items, the whole bundle may be taxed depending on how the seller rings it up.
Admission to movies, concerts, sporting events, and theme parks is taxed. A ticket to the Arizona State Fair is taxed. But admission to certain nonprofit educational or cultural events may be exempt — the rules are specific, and the venue can tell you whether tax applies.
How to find your exact local rate
The simplest way is to ask a cashier at any store in your area — they know the rate and can tell you in seconds. You can also visit the Arizona Department of Revenue website and use their sales tax rate lookup tool. Enter your street address, city, and ZIP code, and the tool returns your exact combined rate.
If you are a business owner or you file taxes in Arizona, you may need to know the rate for multiple locations. The Department of Revenue publishes a complete list of all city and county rates, updated whenever a jurisdiction changes its rate. That list is also available on their website.
Sales tax on online and mail orders
If you order from a company that has a store, warehouse, or office in Arizona, the company must charge you Arizona sales tax at checkout. If the company has no physical presence in Arizona, it may not charge tax — but you are technically required to pay the tax yourself when you file your Arizona return.
This rule applies to all online retailers, not just large ones. A small business in another state that ships to Arizona does not have to charge tax unless it meets certain sales thresholds set by Arizona law. In practice, most small retailers do not charge tax to Arizona customers, and most individual customers do not report and pay the tax themselves.
Frequently Asked Questions
Is there sales tax on groceries in Arizona?
No. Unprepared food you buy at a grocery store — milk, bread, eggs, vegetables, meat, cereal — is not taxed. But prepared food is taxed. A rotisserie chicken from the deli counter, a sandwich from the bakery, or a hot pizza is taxed at the full rate.
Do I pay sales tax on services in Arizona?
Most services are not taxed. A haircut, a car repair, a plumbing visit, and a doctor appointment are not subject to sales tax. But if you buy a product during that service — shampoo at the salon, a part at the repair shop — the product is taxed.
What is the sales tax rate in my city?
It varies by city and county. Use the Arizona Department of Revenue's sales tax rate lookup tool on their website, or ask a cashier in your area. Rates range from about 7 percent to over 10 percent depending on location.
Do I have to pay sales tax on out-of-state online orders?
If the seller has no physical presence in Arizona, they do not have to charge tax. You are technically required to report and pay the tax yourself on your Arizona return, but most individual shoppers do not.