Phoenix sales tax guide
Shopping in Phoenix means paying one of the higher combined sales tax rates in Arizona: 8.6%, against a statewide average combined rate of 8.4%. Among the 30 major US cities we track, Phoenix ranks 12 by combined rate. This guide shows how the rate is built and what it adds to real purchases.
How the Phoenix rate is built
Arizona levies a Transaction Privilege Tax (TPT) rather than a classic sales tax: 5.60% state + 0.70% Maricopa County + city tax. Groceries are exempt at the state level and Phoenix does not tax groceries, though some Arizona cities do.
No single government sets the 8.6% figure. The state of Arizona sets the base rate of 5.6%, and county, city and special-district taxes stack on top of it. That stacking is why the rate can change across a city boundary — and why the address of the sale, not the seller's home address, decides the tax on most transactions.
What the rate does to real purchases
| Purchase | Tax at 8.6% | Total |
|---|---|---|
| $25 purchase | $2.15 | $27.15 |
| $100 purchase | $8.6 | $108.6 |
| $500 purchase | $43 | $543 |
| $1,000 purchase | $86 | $1,086 |
| $10,000 purchase | $860 | $10,860 |
| $35,000 car (where vehicles are taxed at sale) | $3,010 | $38,010 |
Groceries: Groceries are exempt from the state transaction privilege tax, but some cities tax food for home consumption. Prepared food and restaurant meals are taxed at the full rate in most jurisdictions, even where groceries for home consumption are exempt or reduced.
Phoenix vs other major US cities
Phoenix is the Arizona city we track in detail. Set against the extremes of the 30-city dataset (average 7.93%), its position is clear:
| City | Combined rate | Tax on $1,000 |
|---|---|---|
| Phoenix (this guide) | 8.6% | $86 |
| Seattle — among the highest | 10.35% | $103.5 |
| Chicago — among the highest | 10.25% | $102.5 |
| Portland — among the lowest | 0% | $0 |
| Louisville — among the lowest | 6% | $60 |
What this means in Phoenix
On planned purchases the rate is a line item, not a rounding error: $860 on $10,000, which is $20 more than the same purchase at the Arizona average rate. Households near a lower-rate city boundary sometimes route vehicles, appliances and furniture purchases accordingly; on weekly spending, the difference is a few dollars a month and rarely worth a trip.
Selling in Phoenix
If your business delivers into Phoenix, the rate your customer pays is generally the combined rate at their address. Once your Arizona sales pass the state's economic-nexus threshold you must register, collect and remit — the threshold and filing basics are covered on the Phoenix sales tax page, and the statewide picture is in the Arizona tax guide.
Sales tax · combined rate
Property tax · average effective
Chart: DailyFinance.tools · Rates are reviewed averages from our state tax dataset — your exact local rate may differ.
Phoenix sales tax FAQs
What is the sales tax rate in Phoenix?
The combined sales tax rate in Phoenix is approximately 8.6%, made up of the Arizona state rate plus county, city and district taxes. Arizona levies a Transaction Privilege Tax (TPT) rather than a classic sales tax: 5.60% state + 0.70% Maricopa County + city tax. Groceries are exempt at the state level and Phoenix does not tax groceries, though some Arizona cities do.
How much tax do I pay on a $100 purchase in Phoenix?
At 8.6%, a $100 taxable purchase in Phoenix carries about $8.6 in sales tax, for a total of $108.6. On $1,000 the tax is $86; on $10,000 it is $860.
Why is the Phoenix rate different from the rest of Arizona?
Sales tax is stacked: the state sets a base rate and local governments add their own. Phoenix adds local layers that bring the combined rate to 8.6%, compared with a statewide average combined rate of about 8.4% — a gap of 0.2 points.
How does Phoenix compare with other US cities?
Phoenix ranks 12 of the 30 major cities in our dataset by combined rate (dataset average 7.93%). The highest is Seattle at 10.35% and the lowest is Portland at 0%. Against the all-state average combined rate of 6.61%, Phoenix is 1.99 points higher.
Are groceries taxed in Phoenix?
Groceries are exempt from the state transaction privilege tax, but some cities tax food for home consumption.
Where can I verify the exact rate for a Phoenix address?
The 8.6% figure is the typical combined rate inside city limits; district taxes can shift it block by block. Verify the rate for a specific address with the Arizona Department of Revenue before a major purchase or a filing.
Reviewed by Tahir Shehzad, ACMA · State tax data reviewed November 2026 against official sources — see our Methodology and Editorial Policy. Figures are educational estimates, not tax or financial advice. For a filing decision, confirm with the Arizona Department of Revenue.