Minimum Sales Rate Tax for 2024
| 5.60% | Column content | Column content | Column content | Column content | |
| 2.3% | Column content | Column content | Column content | Column content | |
| 0.7% | Column content | Column content | Column content | Column content | |
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| Scientific & Cultural Fac.(cd) | Column content | Column content | Column content | Column content | |
| Regional Transport Authority | Column content | Column content | Column content | Column content | |
| Minimum combined sales tax rate value | 8.6% | Column content | Column content | Column content | Column content |
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| Economic sales nexus threshold | $100,000 | Column content | Column content | Column content | Column content |
| Transactions threshold | N/A | Column content | Column content | Column content | Column content |
| Sales tax return filing due date | Last day of the month following the reporting period. | Column content | Column content | Column content | Column content |
The base state sales tax rate in Arizona is 5.6%, but since the city-specific tax rate is 2.3%, and the Maricopa County tax rate is 0.7%, the minimum sales tax rate for Phoenix is 8.6%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Looking for help calculating your sales tax? Contact us today to book a free consultation!
What is nexus?
In Phoenix, businesses must understand “nexus” to determine their tax obligations. Nexus refers to the connection that requires a business to collect sales tax in a state. This concept became even more important after the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., which allowed states to require sales tax collection based on economic activity rather than just a physical presence.
Specific sales tax rules for Phoenix
As of April 1, 2015, food for home consumption is taxed at 0.00%. Advertising is taxed at 0.50%, and telecommunications at 4.70% since February 1, 1998.
Utilities and wastewater removal services are both taxed at 2.70%, effective from October 1, 1985, and July 1, 1988, respectively. Hotels face an additional 2.30% tax, with a 3.00% tax on transient lodging since January 1, 2016. Jet fuel has been taxed at $0.00732 per gallon since October 1, 1991.
Services
Usually not taxed unless tied to the sale of physical goods.
Goods
Sales tax applies to most physical products, including appliances, cars, furniture, sporting goods, and electronics.
Clothing
Generally subject to sales tax.
Electronics
Taxable.
SaaS
Taxable.
Digital Products
Taxable.
Software
Downloaded software is taxed, while pre-installed software on devices is not.
Freight/Shipping
Shipping fees are exempt from tax unless they are part of the item’s total price.
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