What makes up Phoenix's 8.6% rate?

Arizona calls its sales tax the Transaction Privilege Tax (TPT). Phoenix's combined 8.6% stacks the Arizona state rate of 5.6%, the Maricopa County portion, and the City of Phoenix tax. The exact split is shown in the breakdown.

Are groceries taxed in Phoenix?

Unprepared food for home consumption is exempt from the City of Phoenix sales tax, though the state and county portions may still apply to certain items. Selecting the grocery option removes the city share from the calculation.

Does this apply to restaurants?

No. Prepared food and restaurant meals are fully taxable and often carry an additional Phoenix bar and restaurant tax. Use the general merchandise option for dining, and add any venue-specific surcharge separately.

Can I change the rate?

Yes. The combined rate defaults to 8.6% for Phoenix, but you can adjust it to model another Arizona city. Rates vary across Maricopa County municipalities, so override the field for Tempe, Mesa, or Scottsdale.

Is Arizona sales tax really a privilege tax?

Technically the TPT is levied on the seller for the privilege of doing business, but it is almost always passed to the buyer at checkout, so for the shopper it behaves exactly like a sales tax.

Phoenix Combined Sales Tax Calculator

Phoenix layers state, county, and city taxes into a combined 8.6% rate that shoppers pay on most purchases. This calculator splits that rate into its parts, handles Arizona’s grocery exemption, and shows the exact tax and final total for any amount.

How it works

The tax is the purchase amount multiplied by the applicable combined rate, with groceries dropping the city portion:

state rate   = 5.6%   (Arizona TPT)
combined     = 8.6%   (state + Maricopa County + City of Phoenix)
city portion = combined − state − county
groceries    = exempt from the city portion
tax          = amount × applicable rate
total        = amount + tax

Arizona’s Transaction Privilege Tax is legally imposed on the seller, but it is passed through to the buyer at the register, so the math is identical to a conventional sales tax.

Example and tips

A $100 general purchase in Phoenix incurs $8.60 in tax for a $108.60 total. The same $100 spent on unprepared groceries drops the City of Phoenix share, lowering the effective rate. Remember that prepared restaurant food is fully taxable and often carries an extra hospitality surcharge, so dining costs more than the base 8.6% suggests.