The sales tax rate in Show Low, AZ is 8.43% on most retail purchases. That total stacks three separate taxes: Arizona’s 5.6% transaction privilege tax, a 0.83% Navajo County tax, and the city’s own 2.0% tax.1Arizona Department of Revenue. Transaction Privilege Tax
How the 8.43% Breaks Down
- Arizona state TPT: 5.6%, applied uniformly across the state on retail sales.
- Navajo County: 0.83%, which funds county operations along with special district levies like jail and library.
- City of Show Low: 2.0%, administered under the Arizona Model City Tax Code.
All three pieces are collected together by the Arizona Department of Revenue, so a single receipt line reflects the combined rate.1Arizona Department of Revenue. Transaction Privilege Tax At 8.43%, Show Low sits slightly above the national population-weighted average combined rate of 7.53%.2Tax Foundation. State and Local Sales Tax Rates
One quirk of the terminology: Arizona calls its sales tax a transaction privilege tax because it is technically imposed on the seller’s privilege of doing business rather than on the buyer’s purchase. Sellers pass the cost through at the register, so from the shopper’s side it works the same way.
Groceries and SNAP Purchases
Food for home consumption is exempt from Arizona’s 5.6% state TPT.3Arizona Department of Revenue. Publication 575 – Tax Exempt Food That covers most unprepared grocery items sold by qualified retailers. Prepared food, restaurant meals, and food sold at convenience stores that primarily sell prepared items are generally not exempt.4Arizona Legislature. Arizona Revised Statutes 42-5061 – Retail Classification
Items purchased with SNAP benefits are also exempt from TPT regardless of category.4Arizona Legislature. Arizona Revised Statutes 42-5061 – Retail Classification
Hotel and Short-Term Lodging
If you’re booking a hotel, motel, or short-term rental in Show Low, you’ll pay substantially more than 8.43%. The city adds a 3.0% bed tax on transient lodging on top of its base 2.0% rate, bringing the city portion alone to 5.0%. That additional tax took effect July 1, 2023, under Ordinance No. 2023-22.5Arizona Department of Revenue. Show Low Transaction Privilege Tax Rates
The combined state and county transient lodging rate is 6.38%.6Arizona Department of Revenue. Transaction Privilege and Other Tax Rate Tables Added to the city’s 5.0%, that puts the total tax on a hotel stay at roughly 11.38%. On a $150 room, you’ll see about $17 per night in tax.
Online and Out-of-State Purchases
Online sellers shipping to Show Low are required to collect the full 8.43% combined rate once they meet Arizona’s economic nexus threshold of $100,000 or more in gross sales into the state during the current or previous calendar year. Marketplace facilitators such as Amazon, eBay, and Walmart hit the same $100,000 threshold based on the combined sales they facilitate for all third-party sellers.7Arizona Department of Revenue. Out-of-State Sellers
In practice, the large platforms clear that threshold easily, so most online purchases arrive with Show Low’s tax already included at checkout. Smaller independent sellers who stay under $100,000 and don’t sell through a marketplace are not required to collect Arizona TPT.
Use Tax on Untaxed Purchases
Buying from an out-of-state seller who doesn’t charge Arizona tax doesn’t eliminate the tax. You owe “use tax” at the 5.6% state rate and are expected to self-report and remit it directly to the Department of Revenue.8Arizona Department of Revenue. Understanding Use Tax It applies to any taxable item used or consumed in Arizona where no sales tax was collected at the point of sale.
Claiming Sales Tax on Your Federal Return
If you itemize on your federal return, you can deduct either state income tax or state and local sales tax, not both. Since Arizona has an income tax, most filers take the income tax deduction, but a year with major purchases can tilt the math the other way. The IRS offers a calculator that estimates the deduction from your income, family size, and ZIP code, and it lets you add actual sales tax paid on big-ticket items like a vehicle on top of that estimate.9Internal Revenue Service. Use the Sales Tax Deduction Calculator
The combined state and local tax deduction, including property tax, is capped at $10,000 per return, or $5,000 if married filing separately.9Internal Revenue Service. Use the Sales Tax Deduction Calculator Many Show Low homeowners reach that cap through property taxes alone, which limits any added benefit from claiming sales tax. Renters, who have no property tax to claim, usually come out ahead by running the sales tax number.