State of Arizona Sales Tax The 2016 Arizona State Sales Tax

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What is the 2016 Arizona Sales Tax Rate?

Arizona Sales Tax Rate

5.60%

2016 Arizona state sales tax
Exact tax amount may vary for different items

The Arizona state sales tax rate is 5.6%, and the average AZ sales tax after local surtaxes is 8.17%.

  • Groceries and prescription drugs are exempt from the Arizona sales tax
  • Counties and cities can charge an additional local sales tax of up to 5.125%, for a maximum possible combined sales tax of 10.725%
  • Arizona has 511 special sales tax jurisdictions with local sales taxes in addition to the state sales tax
  • Arizona has a lower state sales tax than 78.8% of states

Arizona has a transaction privilege tax (TPT) that serves as an alternative to a sales tax. This tax applies to vendor's purchases rather then consumer purchases, but vendors are allowed to pass the tax (or part of it) on to their consumers. As of July 2011, consumers are also expected to declare and pay use tax on any items bought online or through mail order. This is similar to use tax requirements in other states with a traditional sales tax model. The Arizona sales tax was last changed in June 2013, when it was lowered to 5.6% following the expiration of a temporary sales tax increase.

If you are a Arizona business owner, you can learn more about how to collect and file your Arizona sales tax return at the 2016 Arizona Sales Tax Handbook .

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Arizona Sales Tax Exemptions

Arizona doesn't collect sales tax on purchases of most prescription drugs and groceries. In most states, necessities such as groceries, clothes, and drugs are exempted from the sales tax or charged at a lower sales tax rate.

Some items may not be eligible for these reduced sales tax rates, such as expensive clothing, unhealthy food or drinks like soda, and certain non-essential pharmaceuticals. Unlike many states, Arizona treats both candy and soda as groceries for sales tax purposes. Other items including gasoline, alcohol, and cigarettes are subject to various Arizona excise taxes in addition to the sales tax.

In some states, items like alcohol and prepared food (including restaurant meals and some premade supermarket items) are charged at a higher sales tax rate. The AZ sales tax applicable to the sale of cars, boats, and real estate sales may also vary by jurisdiction. Arizona's sales tax rates for commonly exempted items are as follows:

Groceries: EXEMPT Clothing: 5.6% Prepared Food: 5.6% Prescription Drugs: EXEMPT Non-Prescription Drugs: 5.6%
Arizona sales tax for a restaurant meal
$100 Restaurant Dinner
Arizona sales tax for groceries
$100 of groceries
Arizona sales tax for clothing
$100 in clothes
Arizona sales tax for general consumer products
$100 of consumer products
$5.60 sales tax
$105.60 total
$0.00 sales tax
$100.00 total
$5.60 sales tax
$105.60 total
$5.60 sales tax
$105.60 total

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Arizona Sales Tax Exemption Certificate

Unlike a Value Added Tax (VAT), the Arizona sales tax only applies to end consumers of the product. Individuals and companies who are purchasing goods for resale, improvement, or as raw materials can use a Arizona Sales Tax Exemption Form to buy these goods tax-free.

Companies or individuals who wish to make a qualifying purchase tax-free must have a Arizona state sales tax exemption certificate, which can be obtained from the Arizona Department of Revenue Website . On making an exempt purchase, Exemption Certificate holders may submit a completed Arizona Sales Tax Exemption Form to the vendor instead of paying sales tax.

Sales tax exemption forms (as well as business sales tax id applications, sales tax returns, and the full Arizona sales tax code) can be downloaded from the Arizona Department of Revenue Website here .

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Arizona Sales Tax Calculator

 Sales Tax Calculator
Purchase Details:
$ in zip code Enter the zip code where the purchase was made for local sales tax

Whenever you make a purchase at a licensed Arizona retailer, your sales tax will be automatically calculated and added to your bill. To lookup the sales tax due on any purchase, use our Arizona sales tax calculator.

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Arizona Use Tax [View Main Article]

If you buy goods and are not charged the Arizona Sales Tax by the retailer, such as with online and out-of-state purchases, you are supposed to pay the 5.6% sales tax (less any foreign sales tax paid) for these items yourself as the Arizona Use Tax.

Your are expected to voluntarily list your liable purchases on a Arizona Use Tax Return, which should be attached with payment to your Arizona Income Tax Return. Historically, compliance rates with with the Arizona Use Tax have been low.

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Arizona Local Sales Taxes

Arizona does not allow local jurisdictions like cities or counties to collect a local sales tax. The Arizona state sales tax of 5.6% is applicable statewide. You can view the sales tax rates for various cities in Arizona here.


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