The Arizona (AZ) state sales tax rate is currently 5.6%, ranking 28th-highest in the U.S. Depending on local municipalities, the total tax rate can be as high as 11.2%. The average local rate is 2.78%. The average combined tax rate is 8.38%, ranking 11th in the US.

Although commonly referred to as a sales tax, the Arizona Transaction Privilege Tax (TPT) is actually a tax on the vendors. Consumers are subject to use tax when a retailer does not collect tax for tangible personal property used, stored or consumed.

In some of the cities, local taxes apply to both intra-state and inter-state transactions.

In Arizona, food for home consumption, prescription drugs, prescription eyeglasses, hearing aids, and certain medical equipment are not subject to the sales tax.

The Arizona Department of Revenue has issued a ruling stating that a business that operates an online marketplace and makes online sales on behalf of third-party merchants is a retailer conducting taxable sales.