The sales tax rate in Eloy, Arizona is 9.7% on most retail purchases as of 2026. That total combines a 5.6% Arizona state transaction privilege tax, a 1.1% Pinal County excise tax, and a 3% City of Eloy municipal tax. What you actually pay at the register can be higher or lower depending on the category of what you’re buying.
How the 9.7% Breaks Down
Arizona technically doesn’t charge a sales tax. It charges a Transaction Privilege Tax on the seller for the privilege of doing business in the state. Sellers pass it to customers, so it behaves like a sales tax on your receipt.
Three jurisdictions contribute to the Eloy rate:
- Arizona state TPT: 5.6%
- Pinal County excise tax: 1.1%, bringing the state-and-county retail rate to 6.7%
- City of Eloy retail tax: 3%
The Arizona Department of Revenue collects all three through a single return.1Arizona Department of Revenue. Transaction Privilege Tax The 6.7% state-and-county figure for Pinal County is published in the official rate tables effective January 1, 2026,2Arizona Department of Revenue. Transaction Privilege and Other Tax Rate Tables and the 3% city retail rate appears in the Eloy profile maintained by ADOR.3Arizona Department of Revenue. Eloy Transaction Privilege Tax and Use Tax Rates Rates can shift through ballot measures or legislative action, so check the ADOR tables before budgeting a large purchase.
When the Rate Is Different
Eloy sets its own city rates for several business classifications, and some land well above the 3% baseline.
Restaurants and Bars
Eloy taxes restaurants and bars at 5% at the city level. Add the state’s 5.6% and the county’s 1.1%, and a meal in Eloy carries a combined 11.7%. The city dropped the restaurant rate from 6% to 5% effective August 1, 2023.3Arizona Department of Revenue. Eloy Transaction Privilege Tax and Use Tax Rates
Hotels and Short-Term Lodging
Overnight stays carry two city-level charges stacked together: a 4% hotel classification rate and a separate 3% bed tax, for a combined 7% from the city alone.3Arizona Department of Revenue. Eloy Transaction Privilege Tax and Use Tax Rates With the state and county portions on top, a hotel bill in Eloy runs noticeably above the standard retail figure.
Recreational Marijuana
Arizona imposes a 16% state excise tax on adult-use marijuana in addition to regular TPT. A marijuana purchase in Eloy is subject to that 16% excise plus the standard 9.7% combined rate, pushing the total above 25%.
Commercial Leases
Eloy taxes commercial rent at 3%, but the state-and-county combined rate for commercial leases in Pinal County is only 0.5%, well below the retail rate.2Arizona Department of Revenue. Transaction Privilege and Other Tax Rate Tables Tenant payments made on the landlord’s behalf for property taxes, repairs, and improvements count toward the taxable rent.3Arizona Department of Revenue. Eloy Transaction Privilege Tax and Use Tax Rates
Prime Contracting
Construction falls under the prime contracting classification. Arizona taxes 65% of gross proceeds, giving a 35% deduction for labor.4Arizona Legislature. Arizona Code 42-5075 – Prime Contracting Classification Exemptions Definitions Eloy taxes contracting at 3%, and the state-and-county rate for Pinal County contracting is 6.7%.2Arizona Department of Revenue. Transaction Privilege and Other Tax Rate Tables Subcontractors working under a licensed prime contractor who is paying tax on the full project are not separately taxed. Contractors can buy materials for a taxable project tax-free using Arizona Form 5000.5Arizona Department of Revenue. Transaction Privilege Tax Exemption Certificate
What Isn’t Taxed
Groceries
Unprepared groceries sold by eligible grocery businesses are exempt from state and county TPT.6Arizona Department of Revenue. Taxpayer Information Ruling LR 21-001 The exemption covers food that leaves the store unheated and unserved. Hot prepared food, sandwiches served with tableware, and anything eaten on the premises stay taxable.7Arizona Department of Revenue. Retail Sales – Food for Home Consumption A deli counter inside a grocery store can qualify if it operates from a separate counter or uses a register that distinguishes taxable from exempt sales.
Prescription Drugs
Drugs dispensed on a valid prescription from a licensed medical, dental, or veterinary professional are exempt from Arizona retail TPT.8Arizona Legislature. Arizona Code 42-5061 – Retail Classification Definitions Over-the-counter medications remain fully taxable even if a doctor recommended them.
Services and Manufacturing Equipment
Professional services that don’t transfer tangible property — legal advice, accounting, consulting — are generally not subject to TPT. Manufacturing and processing equipment used directly in production is also exempt, including machinery, replacement parts, industrial gases, and cleanroom equipment. Hand tools, janitorial supplies, and office equipment don’t qualify because they aren’t directly involved in making the product. If you paid TPT on equipment that should have been exempt, you can file a refund claim going back up to four years.
Online and Out-of-State Purchases
Deliveries to Eloy from out-of-state sellers are taxed at the local combined rate, 9.7% for standard retail. Out-of-state businesses must collect and remit Arizona TPT once their gross sales into the state hit $100,000 in the current or prior year.9Arizona Department of Revenue. Economic Threshold The tax is based on the delivery address, so an Eloy address triggers the full Eloy rate.
Marketplace platforms such as Amazon and Etsy are responsible for collecting on third-party sales they facilitate.10Arizona Department of Revenue. FAQ – Remote Sellers and Marketplace Facilitators If a seller doesn’t collect Arizona tax on a purchase shipped to you, you owe use tax directly to the Arizona Department of Revenue at the same rate you would have paid locally. Individuals can mail use tax payments to ADOR in Phoenix.11Arizona Department of Revenue. Understanding Use Tax
If You’re Collecting the Tax
Any business operating in Eloy needs both a city business license and a state TPT license. The city license falls under City Code Section 12-1, with fees that vary by business type and location; businesses opening after July 1 may qualify for a prorated half fee.12Eloy, AZ – Official Website. Business License The state TPT license is obtained through AZTaxes.gov, runs on a calendar year, and must be renewed annually. Arizona charges no state renewal fee, and the Eloy city renewal fee is currently listed as not applicable.13Arizona Department of Revenue. Renewing a TPT License
Filing frequency depends on your estimated annual tax across all Arizona jurisdictions: annual under $2,000, quarterly between $2,000 and $8,000, and monthly above $8,000. Monthly returns are due by the 20th of the following month.14Arizona Department of Revenue. Due Dates A zero-sales period still requires a return.15Arizona Department of Revenue. TPT Filing Frequency Businesses with $500 or more in prior-year TPT and use tax liability must file and pay electronically.16Arizona Department of Revenue. TPT Update March 2026 Late filing runs 4.5% of tax due per month to a 25% cap, with a $25 minimum.17Arizona Department of Revenue. TPT Notices and Correspondence Resource Center