Arizona Sales Tax
Calculator
Calculate Arizona sales tax instantly for any city. Enter any amount to see the exact tax and total with local rates included.
About Arizona Sales Tax
Arizona Sales Tax Rates by City
Arizona's total sales tax rate varies by location. The state charges a base TPT (Transaction Privilege Tax) rate of 5.600%, and counties and cities add their own local taxes. Combined rates typically range from 5.600% to over 11% depending on your location.
Phoenix
Maricopa County
Tucson
Pima County
Mesa
Maricopa County
Chandler
Maricopa County
Glendale
Maricopa County
Scottsdale
Maricopa County
Peoria
Maricopa County
Tempe
Maricopa County
Surprise
Maricopa County
Goodyear
Maricopa County
City | County | Standard Rate | Special District | Population |
|---|---|---|---|---|
| Phoenix | Maricopa | 9.100% | Standard Rate | 1,673,164 |
| Tucson | Pima | 8.700% | Standard Rate | 554,013 |
| Mesa | Maricopa | 8.300% | Standard Rate | 517,151 |
| Chandler | Maricopa | 7.800% | Standard Rate | 281,231 |
| Glendale | Maricopa | 9.200% | Standard Rate | 253,868 |
| Scottsdale | Maricopa | 8.000% | Standard Rate | 244,421 |
| Peoria | Maricopa | 8.100% | Standard Rate | 198,753 |
| Tempe | Maricopa | 8.100% | Standard Rate | 189,839 |
| Surprise | Maricopa | 9.100% | Standard Rate | 158,282 |
| Goodyear | Maricopa | 8.800% | Standard Rate | 111,807 |
| Yuma | Yuma | 8.412% | Standard Rate | 100,861 |
| Avondale | Maricopa | 8.800% | Standard Rate | 93,555 |
| Flagstaff | Coconino | 9.386% | Special District | 76,595 |
| Queen Creek | Maricopa/Pinal | 8.550% | Standard Rate | 76,046 |
| Maricopa | Pinal | 8.700% | Standard Rate | 71,021 |
| Lake Havasu City | Mohave | 7.600% | Standard Rate | 59,037 |
| Casa Grande | Pinal | 8.300% | Standard Rate | 57,318 |
| Oro Valley | Pima | 8.600% | Standard Rate | 48,311 |
| Prescott | Yavapai | 9.300% | Standard Rate | 47,757 |
| Sierra Vista | Cochise | 8.150% | Standard Rate | 44,431 |
| Bullhead City | Mohave | 7.600% | Standard Rate | 43,302 |
| Apache Junction | Maricopa/Pinal | 8.700% | Standard Rate | 41,153 |
| Kingman | Mohave | 8.100% | Standard Rate | 35,334 |
| Gilbert | Maricopa | 8.300% | Standard Rate | 28,879 |
| Florence | Pinal | 8.300% | Standard Rate | 24,291 |
| Fountain Hills | Maricopa | 9.200% | Standard Rate | 23,611 |
| Marana | Pima/Pinal | 8.600% | Standard Rate | 5,843 |
| Prescott Valley | Yavapai | 9.180% | Standard Rate | 5,144 |
| El Mirage | Maricopa | 9.300% | Standard Rate | 3,585 |
| Buckeye | Maricopa | 9.300% | Standard Rate | 1,089 |
Note: Rates include state, county, and city TPT. Local rates may change; verify current rates for large purchases.
How to Calculate Sales Tax in Arizona
Reverse Calculation
Know the total? Divide by 1.091 to find the pre-tax price (using 9.1% rate). Example: $109.10 ÷ 1.091 = $100.00
What's Taxed?
Special Arizona Sales Tax Rules
Transaction Privilege Tax (TPT)
Arizona uses a Transaction Privilege Tax (TPT) instead of a traditional sales tax. TPT is technically a tax on the vendor for doing business, not on the buyer—though vendors typically pass it to customers.
Why it matters: Because TPT is a tax on the privilege of doing business, businesses must obtain TPT licenses and remit the tax even if they don't collect it from customers. The current state rate is 5.600%.
Grocery Tax Rules
Groceries are exempt at the state level, but many cities still tax them
- • State Exempt: Food covered by Food Stamp Act, plus candy, gum, snacks, soft drinks
- • Local Varies: Many cities tax groceries, but Phoenix, Mesa, and Tucson do not
- • Always Taxable: Prepared food, restaurant meals, hot foods
- • Prescriptions: Prescription drugs are exempt statewide
TPT's 16 Business Classifications: Beyond Retail
Unlike most states with a single sales tax rate for all transactions, Arizona's Transaction Privilege Tax operates under 16 separate business classifications, each with its own tax base and rules. This complexity reflects Arizona's unique approach: taxing the privilege of doing business rather than the sale itself.
Retail
Selling tangible personal property at retail
Restaurant & Bars
Serving food and beverages for on or off-premises consumption
Prime Contracting
Construction and contracting activities affecting real property
The 35% Labor Deduction Explained
Prime contractors receive a unique benefit under A.R.S. § 42-5075(B): they're only taxed on 65% of their contract value. The remaining 35% is automatically excluded as assumed labor costs. This means a $100,000 construction contract is only taxed on $65,000.
Prior to 1989, contractors could deduct actual labor costs. The current system simplifies compliance by assuming all contractors have 35% labor expenses—whether they actually do or not.
Complete List of 16 TPT Classifications
Note: Membership Camping was repealed November 1, 2006, reducing classifications from 17 to 16.
Why This Matters for Businesses
Each classification has different tax bases, exemptions, and deductions. A business performing both retail sales and contracting must track revenue separately and apply different TPT rates. Misclassification can result in underpayment penalties or overpayment without refund.
Statutory Authority
All 16 classifications are codified in Arizona Revised Statutes Title 42, Chapter 5 (A.R.S. §§ 42-5061 through 42-5076). Each classification has its own statute defining taxable activities, exemptions, and tax computation methods.
The Model City Tax Code: How Arizona Unified 91 Cities
Before 1987, businesses operating across Arizona faced a compliance nightmare: each of the state's 91 cities and towns had different transaction privilege tax rules, exemptions, and definitions. The Model City Tax Code (MCTC) was created to bring order to this chaos while preserving local autonomy.
The Compliance Nightmare
- ✕ 91 different local tax codes with varying definitions
- ✕ No uniformity in what items were taxable or exempt
- ✕ Businesses needed separate legal review for each city
- ✕ Conflicting interpretations created compliance uncertainty
Unified System
- ✓ All 91 cities/towns adopt the same Model City Tax Code
- ✓ Consistent definitions and business classifications statewide
- ✓ Cities retain right to choose rates and local exemptions
- ✓ Single source of truth for compliance requirements
How the MCTC Was Created
In response to widespread business complaints, the Arizona Legislature created a municipal sales tax study commission. After more than ten years of work, the commission recommended a uniform code. Laws 1988, Chapter 107 established the Municipal Tax Code Commission and required all cities imposing TPT to adopt the Model City Tax Code.
The commission consisted of four appointed members plus the Director of the Arizona Department of Revenue as chairman. Today, the MCTC is maintained by ADOR and updated through the Municipal Tax Code Commission approval process.
The Municipal Tax Code Commission Today
Two-Thirds Vote Requirement (2023)
Laws 2023, Chapter 192 (effective October 30, 2023) significantly strengthened taxpayer protections. The Commission now requires a two-thirds supermajority vote to adopt any amendment that:
- • Repeals an exemption from taxation, or
- • Expands the types of business activities considered taxable
This makes it harder for cities to increase the tax burden without broad consensus.
Mandatory Adoption Rule
Once the Commission adopts a change to the MCTC, all 91 cities and towns must adopt it. Individual cities cannot amend MCTC provisions unless the Commission has first approved the amendment. This ensures statewide uniformity.
All Arizona municipalities participate in the MCTC system
Over 35 years of unified local tax policy
Supermajority needed to expand taxes (since 2023)
Arizona's 22 Sovereign Tribal Nations & Tax Exemptions
Arizona is home to 22 federally recognized Native American tribes whose sovereign lands encompass over 20 million acres—approximately 27% of the entire state. This massive tribal presence creates a unique tax landscape where state TPT authority ends and tribal sovereignty begins.
Tribal Land in Arizona
Navajo Nation
The Navajo Nation is the largest Native American reservation in the United States, spanning northeastern Arizona, northwestern New Mexico, and southeastern Utah. The reservation is approximately the size of West Virginia.
The Navajo Nation observes Daylight Saving Time on all its lands—including the Arizona portion—making it the only part of Arizona that "springs forward" and "falls back" each year.
2021 Tribal Tax Exemption Law
On July 10, 2021, Arizona passed legislation that formally codified TPT exemptions for tribal business activities. The law became effective September 29, 2021 and was codified in A.R.S. § 42-5122.
This legislation clarified decades of case law and administrative rulings by explicitly exempting certain transactions from state and municipal Transaction Privilege Tax when they occur on tribal lands.
What Transactions Are TPT-Exempt on Reservations?
Exempt Activities
- ✓ Business activities performed by tribes, tribally owned businesses, or affiliated Indians on the reservation
- ✓ Retail sales of tangible personal property to tribes or affiliated Indians on the reservation
- ✓ Contracting activities performed on reservations for tribes or tribal members
Still Taxable
- ✕ Sales to non-tribal members on reservations
- ✕ Business activities by non-tribal vendors to non-tribal customers, even on reservations
- ✕ Tribal business activities that occur off the reservation
Tribal Sovereignty
Federally recognized tribes have inherent sovereignty that predates the U.S. Constitution. They have the right to govern themselves, establish their own tax systems, and regulate economic activity within reservation boundaries.
Documentation Requirements
Non-tribal vendors must maintain documentation proving which transactions qualify for exemption. The Arizona Department of Revenue requires records showing the location of sales and tribal affiliation of customers.
Tribal Taxes May Apply
While transactions may be exempt from Arizona TPT, many tribes impose their own sales taxes on reservation commerce. Businesses operating on tribal lands may need to collect and remit tribal taxes instead.
How Arizona Compares to Neighboring States
Here's how Arizona's sales tax stacks up against nearby states
local tax 1.25%
local tax
local tax
local tax
Arizona's 5.600% state rate is middle-of-the-pack among its neighbors. California has the highest state rate (7.25%), while Utah and New Mexico have the lowest (under 5%).
Frequently Asked Questions
Arizona Sales Tax Rate History
Arizona's Transaction Privilege Tax rate has changed several times. Here's the recent history:
| Effective Date | Rate | Change | Notes |
|---|---|---|---|
| June 1, 2013 | 5.600% | ▼ -1.000% | Proposition 100 temporary increase expired |
| June 1, 2010 | 6.600% | ▲ +1.000% | Proposition 100 temporary 3-year increase |
| June 1, 2001 | 5.600% | ▲ +0.600% | Proposition 301 (0.6% dedicated to education) |
| Prior to 2001 | 5.000% | — | Previous base rate |
Note: The 5.6% state rate has been stable since June 2013. Local rates change more frequently as counties and cities adjust their rates.
Related Calculators & Resources
Disclaimer: This calculator provides estimates based on current Arizona sales tax rates as of November 2025. Tax rates are subject to change by state and local legislation. For official tax rates and specific guidance on your situation, please consult the Arizona Department of Revenue or a qualified tax professional.
Not Legal or Tax Advice: The information provided on this page is for informational purposes only and should not be construed as legal or tax advice. Always verify current rates before making large purchases or business decisions.
Sources: Arizona Department of Revenue, Arizona Revised Statutes Title 42 (Taxation), Model City Tax Code
Last updated: November 18, 2025