Arizona Use Tax Calculator

Calculate Your Arizona Use Tax

Enter the purchase price and your combined tax rate to estimate the use tax due.

Understanding the Arizona Use Tax Calculator

Our Arizona Use Tax Calculator helps you estimate the use tax you may owe to the Arizona Department of Revenue (AZDOR) for purchases made out-of-state or online where Arizona sales tax was not collected at the point of sale.

Example Combined Tax Rates for Major Arizona Locations (as of recent data, always verify current rates)

Location (County)	State Rate	County Rate	City Rate	Combined Rate
Phoenix (Maricopa)	5.6%	0.7%	2.3%	8.6%
Tucson (Pima)	5.6%	0.5%	2.6%	8.7%
Mesa (Maricopa)	5.6%	0.7%	1.75%	8.05%
Flagstaff (Coconino)	5.6%	1.125%	2.281%	9.006%
Scottsdale (Maricopa)	5.6%	0.7%	1.75%	8.05%
Unincorporated Maricopa County	5.6%	0.7%	0.0%	6.3%

Note: Tax rates can change. Always verify the current rates with the Arizona Department of Revenue or local authorities.

What is Arizona Use Tax?

Arizona use tax is a tax on the use, storage, or consumption of tangible personal property in Arizona on which Arizona sales tax was not paid at the time of purchase. If you buy items from an out-of-state retailer (including online or mail-order) and they don’t charge Arizona sales tax, you are generally required to pay use tax directly to the state. The use tax rate is the same as the sales tax rate at your Arizona location (state + county + city, if applicable). The Arizona Use Tax Calculator is a tool designed to help you figure out this amount.

Individuals and businesses who make these types of purchases are responsible for remitting the use tax. The Arizona Use Tax Calculator simplifies this by calculating the amount based on your purchase price and local combined tax rate. Many people are unaware they owe use tax on internet purchases if the seller didn’t collect Arizona sales tax.

Arizona Use Tax Formula and Mathematical Explanation

The formula to calculate Arizona use tax is straightforward:

Use Tax Due = Purchase Price × (Combined Tax Rate / 100)

Where:

• Purchase Price is the total amount paid for the goods, excluding shipping if separately stated (though rules on shipping taxability can vary).
• Combined Tax Rate is the sum of the Arizona state sales tax rate, your county sales tax rate, and your city sales tax rate (if you are within city limits). This is the rate you enter into the Arizona Use Tax Calculator.

The Arizona Use Tax Calculator performs this multiplication to find the tax amount.

Variables in the Arizona Use Tax Calculation

Variable	Meaning	Unit	Typical Range
Purchase Price	The net price of the item purchased	$ (USD)	$1 – $100,000+
Combined Tax Rate	Total sales/use tax rate at your location	%	5.6% – 11.2%+
Use Tax Due	The amount of use tax owed	$ (USD)	Depends on price and rate

Practical Examples (Real-World Use Cases)

Example 1: Online Furniture Purchase

Sarah, living in Phoenix (8.6% combined rate), buys a sofa online for $1,200 from a retailer that doesn’t charge Arizona sales tax.

• Purchase Price: $1,200
• Combined Tax Rate: 8.6%

Using the Arizona Use Tax Calculator or formula: Use Tax Due = $1,200 × (8.6 / 100) = $103.20. Sarah owes $103.20 in use tax.

Example 2: Software Purchased from Out-of-State

A business in Tucson (8.7% combined rate) purchases downloadable software for $5,000 from an out-of-state vendor that did not collect Arizona sales tax.

• Purchase Price: $5,000
• Combined Tax Rate: 8.7%

The Arizona Use Tax Calculator shows: Use Tax Due = $5,000 × (8.7 / 100) = $435.00. The business owes $435.00.

How to Use This Arizona Use Tax Calculator

1. Enter Purchase Price: Input the total cost of the item(s) you bought before any tax was added (or not added) by the seller.
2. Enter Combined Tax Rate: Find the total sales tax rate for your specific location in Arizona (state + county + city). If you live in an unincorporated area, it’s just state + county. Enter this combined percentage into the Arizona Use Tax Calculator.
3. View Results: The calculator instantly displays the “Estimated Use Tax Due,” along with the price and rate you entered.
4. Reset/Copy: Use the “Reset” button to clear and start over, or “Copy Results” to save the information.

The results help you understand your potential use tax liability. You are responsible for reporting and paying this, often with your Arizona income tax return (Form 140) or through the TPT system for businesses using form TPT-2. Our Arizona sales tax guide provides more detail.

Key Factors That Affect Arizona Use Tax Results

• Purchase Price: The higher the price of the goods, the more use tax you’ll owe, as it’s a percentage-based tax calculated by the Arizona Use Tax Calculator.
• Your Location’s Combined Tax Rate: Rates vary significantly across Arizona due to different county and city taxes. A higher combined rate means more use tax. Using the correct rate in the Arizona Use Tax Calculator is crucial.
• Whether the Seller Collected Arizona Sales Tax: If the seller collected the correct amount of Arizona sales tax, you do not owe use tax. Use tax is only due if no tax or less than the correct Arizona rate was collected.
• Type of Property Purchased: Most tangible personal property is subject to use tax. Some services or digital goods might have different rules.
• Shipping and Handling Charges: In Arizona, if shipping and handling are separately stated, they are generally not taxable. If lumped with the price, they might be. This affects the “Purchase Price” in the Arizona Use Tax Calculator.
• Timely Filing and Payment: Penalties and interest can be added if use tax is not reported and paid on time. Understanding your obligation with tools like the Arizona Use Tax Calculator is important. More information on filing Arizona taxes can be found here.

Frequently Asked Questions (FAQ)

1. What is the difference between sales tax and use tax in Arizona?

Sales tax is collected by the seller at the time of purchase. Use tax is paid by the buyer directly to the state when Arizona sales tax was not collected by the seller on taxable purchases. The rates are the same. Our Arizona Use Tax Calculator helps find the use tax amount.

2. How do I find my combined tax rate in Arizona?

The Arizona Department of Revenue (AZDOR) website has resources and tables (like Form TPT-2) to help you find the combined rate for your specific address, including state, county, and city rates. The table above provides examples.

3. Do I have to pay use tax on every out-of-state purchase?

You owe use tax on purchases of taxable tangible personal property if the out-of-state seller did not collect Arizona sales tax (or collected less than the correct rate). There are some exemptions.

4. How do I report and pay Arizona use tax?

Individuals can often report and pay use tax on their Arizona state income tax return (Form 140). Businesses usually report use tax on their Transaction Privilege Tax (TPT) return (Form TPT-2). The Arizona Use Tax Calculator helps determine the amount to report.

5. What if I paid sales tax to another state?

Arizona generally allows a credit for sales tax legally paid to another state, up to the amount of Arizona use tax due on the same item. You’d owe the difference if the other state’s rate was lower.

6. Is there a minimum purchase amount before I owe use tax?

No, there is generally no minimum. Technically, use tax is due on any taxable purchase where Arizona sales tax wasn’t collected, regardless of price, though enforcement might focus on larger amounts.

7. What happens if I don’t pay use tax?

The AZDOR can assess the unpaid tax, along with penalties and interest, if they discover it through an audit or other means. It’s best to comply with the law and use the Arizona Use Tax Calculator to understand your liability.

8. Can the Arizona Use Tax Calculator handle business purchases?

Yes, the calculation is the same. Businesses making out-of-state purchases for use in Arizona without paying sales tax are also liable for use tax and can use the Arizona Use Tax Calculator to estimate it. Businesses usually report via form TPT-2, see our guide on understanding TPT.