Does Arizona Charge Sales Tax on Online Purchases?

With the ease of being able to purchase from the comfort of your own home, online shopping has grown in popularity in recent years. However, a lot of buyers still have questions about whether they would be required to pay sales tax for their online purchases, particularly those who live in Arizona.

Arizona does, in fact, impose sales tax on online purchases. In reality, regardless of whether the shop has a physical presence in the state, the law mandates that all online merchants collect sales tax on purchases made by Arizona residents. Due to a Supreme Court decision from 2018, states are now able to collect sales tax from internet businesses even though they don’t have a physical presence there.

So, what is Arizona’s overall sales tax rate? The state’s 5.6% base sales tax rate is added to municipal sales taxes to produce the overall sales tax rate. The real Arizona sales tax rate can change depending on where you make the purchase. For instance, Tucson has an 8.7% total sales tax while Phoenix has an 8.6% total sales tax.

In terms of the state’s sales tax in 2021, Arizona’s base sales tax rate stays at 5.6%. Before making a purchase, it is best to confirm the applicable sales tax rate for your area as some localities may have modified them.

What then is subject to Arizona’s sales tax? In Arizona, sales tax is generally applied to the majority of tangible personal property. Clothing, gadgets, and household goods are included in this. There are occasional exceptions, such as for food consumed at home and prescription medications.

To sum up, Arizona does apply sales tax to online purchases, and the overall sales tax rate can change based on where the purchase is made. Before making a purchase, it is crucial to confirm the applicable sales tax rate for your area and to be aware of the goods that are subject to the state of Arizona’s sales tax.