What is the sales tax in Arizona?
Combined rate, the threshold that makes you register, and the rules that decide what you charge.
The Arizona state sales tax rate is 5.6%. Local rates average 2.85%, for a combined average of 8.45%, and reach 11.1% in the highest jurisdictions. A remote seller has to register once sales into Arizona pass $100,000 in sales into the state over the current or previous calendar year. Charge the rate at the buyer’s address.
- State rate
- 5.6%
- Average local rate
- 2.85%
- Combined average
- 8.45%
- Highest in the state
- 11.1%
Do you have to register?
Economic nexus threshold
$100,000
Measured over the current or previous calendar year. Order count does not matter here, only the dollar figure. Physical presence — staff, an office, or stock sitting in a 3PL in the state — creates the obligation immediately, before any threshold applies.
What you charge, and on what
- Which address sets the rate Charge the rate at the buyer’s address.
- Is shipping taxed Depends how you state it. Freight is exempt when separately stated. Handling is taxable, and a combined shipping-and-handling line makes the whole charge taxable.
- Clothing Taxed at the same rate as everything else.
- Groceries Exempt
- Marketplace sales Amazon, Walmart, Etsy, and eBay collect and remit on the orders they process. Sales through your own store stay yours to collect on.
- Registering Register directly with the Arizona Department of Revenue. This state runs its own registration.
Worth knowing about Arizona
- Arizona levies a transaction privilege tax on the seller rather than a sales tax on the buyer. You owe it whether or not you collected it from the customer.
- Groceries are exempt from the state rate but many cities tax them.
Arizona sales tax questions
What is the sales tax rate in Arizona?
The state rate is 5.6%. Local jurisdictions add an average of 2.85% on top, which puts the typical combined rate at 8.45% and the highest at 11.1%. Because the rate follows the address, the figure you charge depends on where the order is going.
When does a remote seller have to register in Arizona?
Once sales into the state pass $100,000 in sales into the state over the current or previous calendar year. Order count does not matter here — the dollar figure is the only trigger. Physical presence, including inventory held at a 3PL in the state, creates the obligation immediately, before any threshold applies.
Is shipping taxable in Arizona?
Depends how you state it. Freight is exempt when separately stated. Handling is taxable, and a combined shipping-and-handling line makes the whole charge taxable.
Is clothing taxed in Arizona?
Clothing is taxed at the same rate as other goods. Arizona does not exempt apparel.
Where the authoritative number is
Rates and thresholds change, and the Arizona Department of Revenue sets them. Check there before you register or file.
Other states with a $100,000 threshold
Know before you cross the line
The threshold above is easy to read and hard to track, because it counts sales from your store, your marketplaces, and your wholesale accounts together. Endless keeps those on one source of truth, so what you have sold into Arizona this year is a number you already have rather than one you assemble after the fact.
This page is a reference, not tax advice. Confirm registration and filing decisions with the Arizona Department of Revenue or a tax professional.