If you’re asking how much is tax in Arizona, the short answer comes in three pieces: a 5.6% state sales tax that typically rises to between 7.5% and 9% once city and county add-ons are included, a flat 2.5% income tax on everything you earn, and property taxes that average about 0.48% of a home’s market value, among the lowest rates in the country.
Sales Tax: 5.6% State, Plus Local Add-Ons
Arizona’s state sales tax rate is 5.6%. Technically it’s called the Transaction Privilege Tax, or TPT, and it’s charged to the business rather than the shopper, but you’ll see it on your receipt the same way you’d see a sales tax anywhere else. The rate comes from two statutes: a 5% base under A.R.S. § 42-50101Arizona Legislature. Arizona Code 42-5010 – Rates; Distribution Base plus a 0.6% surcharge that runs through June 30, 2041.2Arizona Legislature. Arizona Revised Statutes 42-5010.01 – Transaction Privilege Tax; Additional Rate Increment
Cities and counties layer their own rates on top, and the Arizona Department of Revenue collects everything together.3Arizona Legislature. Arizona Revised Statutes 42-6001 – Collection and Administration of Transaction Privilege Tax What you actually pay at the register depends on where you make the purchase. In the state’s three largest cities:
- Phoenix: 8.6% combined4City of Phoenix. Current Combined Tax Rates (Phoenix, State, County)
- Tucson: 8.7% combined (state 5.6% + Pima County 0.5% + city 2.6%)
- Mesa: 8.3% combined5City of Mesa. Available Revenue Resources
Smaller towns and unincorporated county areas often come in lower because they levy a smaller city tax, or none at all. The Department of Revenue publishes a rate table each month if you need the exact figure for a specific address.
What’s Not Taxed
A few important categories escape the state’s 5.6% sales tax, though cities can set their own rules.
Groceries bought for home consumption are exempt from the state tax. Some Arizona cities still tax food, but if they do, the tax has to apply uniformly to all food items. Prepared food, restaurant meals, and drinks consumed on-site are taxable everywhere.6Arizona Department of Revenue. Retail Sales: Food for Home Consumption
Prescription drugs and medical oxygen dispensed by a licensed doctor, dentist, or veterinarian are exempt. So are casual private sales between individuals, like buying a used lawnmower from a neighbor. That exemption only covers occasional, non-business sales.
Use Tax on Online and Out-of-State Purchases
When you buy something from an out-of-state seller that doesn’t collect Arizona tax, you owe a use tax at the same 5.6% state rate. Most large online retailers now collect it automatically. If a seller doesn’t charge you tax and you use the item in Arizona, you’re technically responsible for paying it. For vehicles purchased out of state, the Arizona Department of Transportation collects any unpaid use tax when you register the car. Items exempt from sales tax, including prescription drugs and most groceries, are also exempt from use tax.7Arizona Department of Revenue. Understanding Use Tax
Income Tax: A Flat 2.5%
Arizona taxes income at a flat 2.5%, regardless of how much you earn. The flat rate replaced the state’s old multi-bracket system starting with the 2023 tax year under SB 1828.8Arizona Legislature. SB 1828 – Senate Fact Sheet Someone earning $30,000 pays the same rate as someone earning $300,000.9Arizona Department of Revenue. Individual Income Tax Highlights
You don’t have to file if your gross income falls below the threshold for your filing status. For tax year 2025:
- Single: $15,750
- Married filing jointly: $31,500
- Married filing separately: $15,750
- Head of household: $23,625
Below those amounts, you generally don’t owe state income tax and don’t need to file.10Arizona Department of Revenue. Individual Income Tax Information Nonresidents earning Arizona-source income use a prorated version of these thresholds based on the ratio of their Arizona income to total income.
Residents and part-year residents file on Form 140; nonresidents file Form 140NR.11Arizona Department of Revenue. Arizona Form 140NR Nonresident Personal Income Tax Booklet The filing deadline is April 15, with an automatic extension to October 15 available if you need more time. An extension to file is not an extension to pay. Any tax owed is still due April 15, or interest starts accruing.
Property Tax: Around 0.48% of Market Value
Arizona’s property taxes are among the lowest in the country. The average effective rate runs about 0.48% of a home’s market value, which ranks the state 47th out of 50.12Tax Foundation. Property Taxes by State and County, 2026 On a $350,000 home, that’s about $1,680 a year. Your actual bill depends on your county, school district, and any special taxing districts in your area, with rates set each fall by the governing bodies of counties, cities, school districts, and community colleges.13Arizona Legislature. Arizona Code 42-17151 – County, Municipal, Community College and School Tax Levy The county assessor calculates a “limited property value” for the primary tax portion, and that limited value can’t rise more than 5% per year.
When Property Tax Is Due
If your total property tax bill is more than $100, you pay in two installments. The first half is due October 1 and becomes delinquent after November 1. The second half is due March 1 and becomes delinquent after May 1. Bills under $100 are due in a single payment by December 31. Late payments accrue interest at 16% annually, prorated by month, and that interest cannot be waived. Unpaid taxes can eventually result in a lien on the property.
Relief for Seniors and Disabled Veterans
The Senior Property Valuation Protection program freezes your home’s assessed value if you’re 65 or older, have owned and lived in the home for at least two years, and meet income limits. For 2026, the income cap is $47,712 for a single owner and $59,640 for two or more owners, calculated as a three-year average.14Arizona Department of Revenue. Senior Property Valuation Protection Option The freeze lasts three years and is renewable. One caveat worth noting: the freeze locks in the valuation, not the tax rate, so your bill can still rise if rates go up. Applications are due by September 1.
Starting with the 2026 tax year, veterans with a 100% service-connected disability rating from the VA are fully exempt from property taxes on their primary residence under HB 2792.15Arizona Legislature. House Bill 2792 The exemption extends to surviving spouses as long as they continue to live in the home and don’t remarry. Veterans need to file an affidavit with the county assessor to claim it.
Vehicle License Tax
Arizona doesn’t charge personal property tax on vehicles, but it does charge a vehicle license tax (VLT) that you pay each year when you renew your registration. In the first year, the VLT is based on 60% of the manufacturer’s base retail price, taxed at a combined rate of about $2.80 per $100 of that assessed value. Each subsequent year, the assessed value drops by 16.25%, so the tax shrinks as the car ages.16Arizona Legislature. Arizona Revised Statutes 28-5801 – Vehicle License Tax Rate; Definitions The minimum is $10 per year no matter how old the vehicle gets. On a new car with a $35,000 MSRP, expect roughly $588 in VLT the first year, dropping each year after.