How Arizona Sales Tax Works
Arizona's state government imposes a 5.60% sales tax on most retail purchases. Counties, cities, and special districts can layer additional local sales tax on top — pushing combined rates to a population-weighted average of 8.40% statewide.
Arizona calls its sales tax the "Transaction Privilege Tax" (TPT) and technically taxes the seller — but the cost is virtually always passed to the buyer.
Groceries in Arizona
Arizona exempts most unprepared groceries from the state Transaction Privilege Tax, though some cities tax food for home consumption.
How Arizona Compares to Neighboring States
Sales tax on a $1,000.00 purchase in Arizona versus neighboring states, using each state's average combined rate (state + local):
| State | State Rate | Combined Rate | Tax on $1,000 | vs. Arizona |
|---|---|---|---|---|
| Arizona (here) | 5.60% | 8.40% | $84.00 | — |
| California | 7.25% | 8.87% | $88.70 | +$4.70 |
| Nevada | 6.85% | 8.24% | $82.40 | -$1.60 |
| Utah | 4.85% | 7.30% | $73.00 | -$11.00 |
| New Mexico | 4.88% | 7.68% | $76.80 | -$7.20 |
| Colorado | 2.90% | 7.81% | $78.10 | -$5.90 |
A negative "vs." figure means a lower sales tax bill on the same purchase. Specific addresses can vary materially from the state-wide average.
Frequently Asked Questions
What is the Arizona sales tax rate for 2026?
Arizona's state sales tax rate is 5.60% for 2026. When combined with the average local sales tax of 2.80%, most Arizona residents pay a typical combined rate of 8.40%.
How much sales tax will I pay on a $100 purchase in Arizona?
On a $100 purchase, expect approximately $5.60 in state sales tax, or about $8.40 including average local sales tax (combined 8.40%). Total cost: roughly $108.40.
Are groceries taxed in Arizona?
Arizona exempts most unprepared groceries from the state Transaction Privilege Tax, though some cities tax food for home consumption.
Is sales tax calculated before or after discounts in Arizona?
Arizona follows the standard rule used by virtually all states: sales tax is calculated on the final discounted price, not the original price. If a $200 item is on sale for $150, you pay sales tax on $150. Manufacturer coupons can be treated differently in some states.
How is this Arizona sales tax estimate calculated?
The calculator applies Arizona's 5.60% state sales tax rate plus whatever local rate you enter (city + county + special districts). The default Local Rate is 0%; click a city in the table above to fill in its local portion, or look up your specific address with Arizona's Department of Revenue tool.