Arizona Sales Tax Calculator 2026: 5.6% TPT + Local Rates

Arizona Sales Tax Calculator 2026

Arizona does not have a sales tax in the usual sense. It has a transaction privilege tax (TPT), a tax on the seller for the privilege of doing business, which sellers almost always pass on to buyers. The state rate is 5.6%, and counties and cities add an average of 2.94%, for an average combined rate of 8.54%. Groceries are exempt from the state part, but most cities still tax them. Enter your county and city rate below to add the tax or take it out of a total.

By AwaisLast reviewed October 28, 2026

Arizona sales tax at a glance

Arizona sales tax rules
Type of tax	Transaction privilege tax (on the seller, usually passed on)
State rate	5.6%
Local rates	Average 2.94%, highest 5.30%
Average combined rate	8.54%
Groceries	No state tax; most cities tax itFood for home consumption is exempt from the state TPT, but there is no general city exemption and most cities tax groceries.
Prescription drugs	Exempt from state TPTPrescription medicines are exempt from state transaction privilege tax and use tax.
Clothing	TaxedClothing is taxed at the full combined rate. Arizona has no sales tax holiday.

Local averages are population-weighted figures from the Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 (rates as of 1 July 2026). They are a guide, not the rate at any one address. For the exact rate where you buy, use the AZTaxes.gov transaction privilege tax rate lookup.

Worked examples

A $700 bike at the average combined rate (8.54%)

A $700 bike at the average combined rate (8.54%)
Rate	5.6% state + 2.94% local = 8.54%
Price before tax	$700.00
Sales tax	$59.78
Total	$759.78

Working: $700.00 × 8.54% = $59.78. The seller owes TPT but passes it on, so the receipt looks like sales tax. Your city rate may be above or below the 2.94% average.

Working back from a $108.54 total

Working back from a $108.54 total
Rate	5.6% state + 2.94% local = 8.54%
Price before tax	$100.00
Sales tax	$8.54
Total	$108.54

Working back: $108.54 ÷ 1.0854 = $100.00, so the tax was $8.54. At the average combined rate, dividing by 1.0854 shows the price before tax was $100. Use your own city and county rate for a real receipt.

How the transaction privilege tax works

The Arizona Department of Revenue describes TPT as a tax on the vendor for the privilege of doing business in the state. Legally the seller owes it, but the seller may pass it on to customers, and on a receipt it looks exactly like sales tax. The tax is charged under business classifications such as retail, restaurants and contracting, and the rate depends on the classification and on the location. Out-of-state sellers must collect once their Arizona sales pass $100,000 a year.

City taxes, food and rentals

Arizona cities run their own tax codes, which differ from the state code. The biggest difference is food for home consumption: it is exempt from the 5.6% state rate, but most cities tax it at their own rate, so a Phoenix grocery bill still carries city tax. Long-term residential rentals (30 days or more) stopped being taxable on 1 January 2025, while short-term lodging is still taxed. Use the AZTaxes.gov rate lookup to find the combined rate for an address.

Arizona vs. neighboring states

Arizona sales tax compared with neighboring states
State	State rate	Avg. combined	Groceries
Arizona	5.6%	8.54%	No state tax; most cities tax it
California	7.25%	9.03%	Exempt
Nevada	6.85%	8.24%	Exempt
Utah	6.1%	7.42%	3% statewide food rate
New Mexico	4.875%	7.68%	Deductible (not taxed)

Average combined rates are from the Tax Foundation, midyear 2026 report. See sales tax rates for every state for the full table.

Frequently asked questions

Does Arizona have a sales tax?

Arizona has a transaction privilege tax instead: a tax on sellers for doing business, which they normally pass on to you. It works like a sales tax at the register, at 5.6% state plus local rates.

Are groceries taxed in Arizona?

Groceries are exempt from the 5.6% state tax, but most Arizona cities tax food for home consumption at their own city rate, so you usually pay a few percent.

Does Arizona have a sales tax holiday?

No. Arizona does not hold back-to-school or other sales tax holidays, so clothing and school supplies are taxed at the full combined rate all year.

Is rent taxed in Arizona?

Not for long-term homes. Since 1 January 2025, cities can no longer tax residential rentals of 30 days or more. Short-term lodging, such as hotels and vacation rentals, is still taxed.

What is the sales tax rate in Arizona in 2026?

The statewide rate is 5.6%. Local taxes add 2.94% on average and up to 5.30%, so the average combined rate is 8.54% (Tax Foundation, rates as of 1 July 2026).

How do I calculate Arizona sales tax on a purchase?

Add the state and local rates, then multiply the price by that rate as a decimal. At 8.54% (the state rate plus the average local rate), tax on $100 is 100 × 0.0854 = $8.54, for a total of $108.54. To go back from a receipt total, divide it by 1 plus the rate.