Businesses that perform the following activities are subject to TPT and must be licensed. retail sales. restaurants/bars. hotel/motel (transient lodging) commercial lease. amusements. personal property rentals. contracting. severance (metal mining)
Services are generally not taxable in Arizona, with the following exceptions: amusements. personal property rentals. contracting.
Common sales tax exemptions include: Professional or personal services where the sale of tangible personal property constitutes an inconsequential element. Services rendered in addition to the sale of tangible personal property at retail.
The state use tax rate is the same as the state transaction privilege tax (TPT) rate (sometimes referred to as sales tax), currently at 5.6 percent. In addition to state use tax, cities also assess use tax through TPT. Please refer to the TPT tax rate table.
Pima County sales tax details The minimum combined 2025 sales tax rate for Pima County, Arizona is 11.1%. This is the total of state, county, and city sales tax rates. The Arizona sales tax rate is currently 5.6%.
This tax goes to several worthy causes. Part of it goes towards the funds devoted to city and county roads. A portion of your vehicle license tax also goes toward a state highway fund to build better roads. Additional portions are distributed into your city and county general fund.