Arizona Sales Tax Rates by City: State, County and City TPT Rates for 2026
Arizona Sales Tax Rates by City: State, County and City TPT Rates for 2026
If you searched for the Arizona sales tax rate, you are asking the right question under a different name. Arizona does not levy a sales tax the way most states do. It levies a Transaction Privilege Tax, or TPT, on business activity. Most businesses collect it as a line item on the customer's bill, but the tax is reported and paid to the Arizona Department of Revenue (ADOR). The combined rate you owe depends on the state rate, the county rate, the city rate, and the business activity being taxed.
This guide explains how the combined arizona tpt rates are built, lists the state rate and the city rates confirmed as of October 2026, and shows you where to confirm the exact number for any address.
How Arizona TPT is built: state, county and city
Every combined TPT rate has three layers:
- State rate: set statewide and the same everywhere in Arizona.
- County rate: set by the county where the sale is taxed, and it varies by county.
- City rate: set by each city or town, and it differs from one city to the next.
ADOR reports TPT by region code and business activity classification. A business in one city can owe different combined rates on different activities, which is why a single "Arizona sales tax rate" does not exist. Confirm both the region and the classification before you set your prices or file your return.
The state rate
The state rate is 5.6% on retail sales and most other taxable classifications. It has two parts: 5.0% under A.R.S. 42-5010(A)(1), plus a 0.6% education rate increment under A.R.S. 42-5010.01. That increment is in effect through June 30, 2041. Transient lodging, such as hotel and short-term stays, carries a state rate of 5.5%.
The state rate is the starting point, not the total. Every figure below sits on top of it.
County rates
Each county adds its own rate to the state rate, and county rates vary. This guide does not print individual county percentages because they change and must be checked for the exact address. Use the ADOR monthly Tax Rate Table and the Tax Rate Look-Up Tool at azdor.gov to find the county figure for a specific location.
City rates confirmed as of October 2026
The city figures below come from the ADOR Model City Tax Code profiles. Cities can change their rates, and several changed in 2025 and 2026, so treat this table as a starting point and confirm before you file.
| City | Rate on most activities or retail | Hotels and lodging | Recent changes |
|---|---|---|---|
| Phoenix | 2.8% | 2.8% plus a 3.0% additional rate | Up from 2.3% effective 7/1/2025 (Ordinance G-7369) |
| Tucson | 2.6% (retail) | 9% hotels; 10% non-hotel short-term rentals | Hotel and short-term rental rates effective 3/1/2026 (Ordinances 12215 and 12218) |
| Flagstaff | 2.486% (retail) | 4.486% on hotels and restaurants/bars | Retail rate effective 7/1/2025 |
| Sedona | 3.5% (retail and most classes) | 3.5% plus a 3.5% bed tax | None listed |
| Bullhead City | 2.0% | 3.0% bed tax | None listed |
Lodging is taxed at the state transient lodging rate of 5.5% plus the city figures shown. Confirm how those rates combine for your property on the ADOR tables, because the stacking depends on the classification.
This guide has confirmed city figures for Phoenix, Tucson, Flagstaff, Sedona and Bullhead City only. We do not state a city rate for Mesa, Tempe, Scottsdale, Glendale, Chandler, Gilbert or Yuma here. For any of those cities, look up the current city figure for your activity in the ADOR monthly Tax Rate Table before you quote a price.
What the combined rate looks like in practice
The arithmetic is simple once you have the layers. Take a $100 taxable retail sale:
- Phoenix: 5.6% state plus 2.8% city equals $8.40 before the county rate.
- Tucson: 5.6% state plus 2.6% city equals $8.20 before the county rate.
- Flagstaff: 5.6% state plus 2.486% city equals about $8.09 before the county rate.
- Sedona: 5.6% state plus 3.5% city equals $9.10 before the county rate.
- Bullhead City: 5.6% state plus 2.0% city equals $7.60 before the county rate.
Add the county rate to each total for the final figure. A Phoenix sale in Maricopa County, for example, is taxed at the state, city and county rates together, so the $8.40 is a floor, not the bill.
Who needs a TPT license
Arizona has no general statewide business license. The license most businesses need is the Transaction Privilege Tax license from ADOR. It is required for retail sales and other taxable business classifications at $12 per location. Apply through the ADOR TPT license page.
The TPT license is a tax registration, not a general permission to operate. A business that makes taxable sales in more than one location needs a license for each location, at $12 each.
City and county requirements on top of the state license
Many cities and towns require their own business license or local TPT license in addition to the state license. Requirements differ from city to city, so check the city where you operate or sell. Counties issue no general business license.
Regulated professions have separate board licensing. Contractors are licensed by the Arizona Registrar of Contractors, which is separate from TPT.
Other Arizona filings to know about
Sales tax is one piece of the picture. These related rules are often confused with it:
- LLC annual report: Arizona LLCs file no annual report. Only corporations must file one.
- Corporation annual report: For-profit corporations pay $45 each year on the anniversary month date assigned by the Arizona Corporation Commission. Nonprofits pay $10. Filings go through the Corporation Commission.
- Trade names: Trade names are registered with the Secretary of State through the trade name page. Trade name registration is optional and is separate from the Corporation Commission filing.
- LLC publication: An LLC must publish notice unless its statutory agent's county is Maricopa or Pima. Confirm the publication steps for your county before you file.
- Income tax: The individual income tax is a flat 2.5%. A corporation pays 4.9% of net income or $50, whichever is greater (A.R.S. 43-1111).
Common mistakes that cost businesses money
- Charging the state rate only. The state rate is the floor. The county and city rates apply on top.
- Using an old city rate. Phoenix and Flagstaff both changed rates effective 7/1/2025, and Tucson changed its hotel and short-term rental rates effective 3/1/2026.
- Assuming a neighboring city has the same rate. Two cities a few miles apart can have different city rates and different licensing rules.
- Forgetting the county. Every quote and return needs the county figure, not just state and city.
- Skipping the license check. Confirm with ADOR whether your activity requires a TPT license before you start selling.
How to confirm the exact rate for an address
- Write down the exact business or sale address and the activity you are taxing, such as retail, restaurant, or lodging.
- Open the ADOR monthly Tax Rate Table at azdor.gov and find the state, county and city lines for that location.
- Run the address through the ADOR Tax Rate Look-Up Tool to confirm the combined total.
- Contact the city's business licensing or tax office to confirm any local license you need.
- Re-check the rate every month, because the tables change.
Get help with complex situations
This guide is informational content, not legal or tax advice. Rates, ordinances and filing rules change, and the city figures above reflect ADOR city profiles as of October 2026. Confirm every rate with the Arizona Department of Revenue before you rely on it.
For multi-location sales, lodging and short-term rentals, mixed activities, or any question about your tax position, talk to a qualified Arizona CPA or tax attorney. The Arizona Small Business Development Center Network can also point you to advising resources for filing and licensing questions.