Arizona's Unique Transaction Privilege Tax
Arizona imposes a Transaction Privilege Tax (TPT) — legally on the seller — which in practice is passed through to consumers like a sales tax. Arizona's state TPT rate of 5.6% applies across retail categories. Cities and counties add their own TPT rates, resulting in combined rates from about 7.1% in some smaller jurisdictions to over 9.3% in cities like Sedona and Glendale.
Phoenix Metro Area Rates — City by City
The Phoenix metro covers numerous cities with different local TPT rates — all in Maricopa County (0.7% county component). Chandler and Gilbert charge 1.5% city rates (7.8% combined). Tempe adds 1.8% (8.1%). Phoenix charges 2.0% city TPT (8.6%). Glendale is highest in the metro at 2.9% city rate (9.2%). Scottsdale has 1.75% city (8.05% combined). For large purchases, shopping location within the Valley can change your tax materially.
Sedona, Flagstaff, and Tourist Community Rates
Northern Arizona tourist destinations tend to have higher combined TPT. Sedona is approximately 9.35%; Flagstaff is 9.18%. Visitors should budget higher tax on dining, lodging, and retail than in much of the Phoenix area.
Arizona TPT for Businesses and E-Commerce
Arizona TPT compliance is administered through AZTaxes. Remote sellers without Arizona physical presence who exceed the $100,000 economic nexus threshold must collect TPT. Sourcing rules can differ for in-state sellers vs. marketplace facilitators — always confirm with AZDOR.
Phoenix metro vs Flagstaff / Sedona — quick comparison
Within Maricopa County, city TPT rates create a spread of more than a point between Chandler (7.8%) and Glendale (9.2%). Northern Arizona tourist cities run higher still. Use the dropdown for common destinations or type a precise combined rate from AZDOR’s rate tables when your ZIP spans multiple business districts.