Phoenix Sales Tax Guide 2025 (Arizona)
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This 2025 guide to Phoenix sales tax breaks down important aspects of managing sales tax, including sales tax rates, exemptions, tax changes, and filing deadlines for Arizona businesses selling in Phoenix or out-of-state businesses selling to customers in Phoenix.
Arizona is not a member of the Streamlined Sales and Use Tax Agreement (SSUTA). Arizona’s complex tax system prevents it from fully aligning with SSUTA’s requirements.
For more general info on Arizona sales tax, take a look at our 2025 Arizona Sales Tax Guide.
Phoenix Sales Tax Rate (Arizona)
In 2025, Phoenix, Arizona, imposes a total sales tax rate of 8.6%, comprising state, county, and city taxes. However, certain areas within Phoenix may have additional special taxing districts, leading to variations in the total sales tax rate.
| Tax Component | Rate |
|---|---|
| Arizona State Tax | 5.6% |
| Maricopa County Tax | 0.7% |
| Phoenix City Tax | 2.3% |
| Total Sales Tax Rate | 8.6% |
For the most accurate and up-to-date information, consider using Kintsugi's sales tax automation platform and integrations or consult the Arizona Department of Revenue or the City of Phoenix's official website.
To learn more about Arizona sales tax on clothing, take a look at Kintsugi's easy guide: Is There Sales Tax on Clothes in Arizona? What Businesses Need to Know.
Phoenix AZ Sales Tax Calculator
A retailer in Phoenix, Arizona, sells an item priced at $500. The total sales tax rate is 8.6%, comprising state, county, and city taxes. A customer can use a sales tax calculator to determine that purchasing a $500 item in Phoenix would result in paying $43.00 in sales tax, bringing the final total price to $543.00.
| Tax Type | Rate | Calculation | Tax Amount |
|---|---|---|---|
| Arizona State Tax | 5.60% | $500 × 5.60% | $28.00 |
| Maricopa County Tax | 0.70% | $500 × 0.70% | $3.50 |
| Phoenix City Tax | 2.30% | $500 × 2.30% | $11.50 |
| Total Combined Tax | 8.60% | $28.00 + $3.50 + $11.50 | $43.00 |
| Final Total Price | $500 + $43.00 | $543.00 |
To learn more about Arizona sales tax on SaaS and digital products, take a look at Kintsugi's easy guide: Understanding Arizona SaaS Sales Tax: Key Insights.
FAQ
What is the City of Phoenix sales tax?
As of February 2025, the total sales tax rate in Phoenix, Arizona, is 8.6%, comprising 5.6% state tax, 0.7% Maricopa County tax, and 2.3% city tax, and using a sales tax calculator can help you determine the exact amount owed.
How do you get a sales tax permit in Arizona?
Apply online through the Arizona Department of Revenue's AZTaxes portal. You'll need business details, an EIN or SSN, and must register for a Transaction Privilege Tax (TPT) license. Fees and possible deduction benefits may apply.
When do I need to complete a sales tax registration in Arizona?
You must complete a sales tax registration before making taxable sales or meeting the economic nexus threshold ($100,000 in sales). Sales tax registration is also known as a Transaction Privilege Tax (TPT) license in Arizona.
What is the sales tax nexus threshold in Arizona?
In Arizona, the economic nexus threshold is $100,000 in gross sales in the state within the current or previous calendar year. There is no transaction threshold.
Is Arizona part of the Streamlined Sales Tax (SST) program?
No, Arizona is not part of the Streamlined Sales Tax (SST) program. Businesses must ensure compliance with the state's independent sales tax rules and Transaction Privilege Tax (TPT) system.
What is considered "tangible personal property” in Arizona?
In Arizona, tangible personal property includes physical items that can be seen, weighed, measured, or touched, such as furniture, electronics, clothing, and vehicles. Some digital goods may also be taxable.
When do I need to file sales tax returns in Arizona?
In Arizona, managing sales tax (Transaction Privilege Tax - TPT) returns are due monthly, quarterly, or annually, based on sales volume. Monthly returns are due by the 20th of the following month.
To learn more about Arizona sales tax exemptions, take a look at Kintsugi's easy guide: What is Exempt from Sales Tax in Arizona? A Guide for Businesses.
Phoenix Sales Tax Filing Steps
Who Needs to Collect Sales Tax in Phoenix?
Sales tax collection in Phoenix is required for businesses that meet the following criteria:
1. Physical Presence: Businesses with a store, office, warehouse, or employee in Phoenix.
2. Economic Nexus: Out-of-state businesses exceeding $100,000 in Arizona.
Not sure if your business meets these criteria? Kintsugi’s Nexus Analysis Tool can help you determine your sales tax obligations.
What Is Taxable in Phoenix?
In Phoenix, Arizona, sales tax applies to:
1. Tangible personal property (e.g., electronics, clothing, furniture).
2. Certain services.
There are also exemptions for items like Grocery Food, Machinery, Raw Materials, Medical Devices, General Occasional Sales, Motor Vehicles Occasional Sales, General Optional Maintenance Contracts, General Trade-Ins, Food Vending Machine. Ensure you check with your state’s tax authority or consult Kintsugi for clarity.
How to File Sales Tax in Phoenix
Here’s a step-by-step guide for filing your sales tax returns:
1. Register Your Business: Get a sales tax permit through the https://azdor.gov/.
2. Collect Sales Tax: Accurately calculate sales tax on taxable transactions.
3. File and Pay: Submit sales tax returns through https://azdor.gov/ by the [state-specific deadline]—monthly, quarterly, or annually depending on your sales volume.
Kintsugi’s Automated Filing Service streamlines the process, ensuring accuracy and timeliness.
Common Challenges in Sales Tax Compliance
Businesses in Phoenix often face these issues:
1. Tracking tax rate changes for city, county, and special districts.
2. Managing exemptions and resale certificates.
3. Reconciling returns for accurate filing.
Kintsugi’s AI-Driven Compliance Solution takes the guesswork out of sales tax, handling rate calculations, exemption management, and filing across all jurisdictions.
Why Choose Kintsugi for Sales Tax Compliance?
Kintsugi is more than a software solution—we’re your trusted partner in sales tax compliance. Here’s how we help:
1. Real-Time Rate Calculation across billing, payments, and e-commerce platforms.
2. Nexus Tracking to identify where you need to register and collect tax.
3. Automated Filing to save time and reduce errors.
4. Audit Support to give you peace of mind.
A direct-to-consumer brand, recovered over $200K in overpaid sales tax within their first month of switching to Kintsugi. Your business could be next.
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Find Sales Tax Information for Other Cities in Arizona
Looking for sales tax rates and compliance details for other cities in Arizona? Check out our comprehensive table of sales tax information for cities across the state in the table below
| City | Sales tax rate |
|---|---|
| New River | 9.30% |
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