Austin, TX vs Phoenix, AZ: sales tax compared
Quick answer
Phoenix, AZ is the higher-tax metro at 8.6%, versus 8.25% in Austin, TX. The 0.35% gap works out to $0.35 on a $100 purchase, $3.50 on $1,000 and $87.50 on a $25,000 purchase.
- Rate gap
- 0.35%Percentage points, combined rate
- Extra tax on $1,000
- $3.50Paid in Phoenix
- Extra tax on $25,000
- $87.50Vehicle-sized purchase
Austin, TX
Travis County
8.25%
Combined rate · ranked #39 of 94 covered metros
| Level | Jurisdiction | Rate |
|---|---|---|
| state | Texas state | 6.25% |
| city | City of Austin | 1% |
| special district | Capital Metro | 1% |
- Population
- 979,882
- Median household income
- $91,461
Austin's Project Connect transit expansion is funded by property tax, not sales tax, because the city was already at the 8.25% cap.
Phoenix, AZ
Maricopa County
8.6%
Combined rate · ranked #28 of 94 covered metros
| Level | Jurisdiction | Rate |
|---|---|---|
| state | Arizona transaction privilege tax | 5.6% |
| county | Maricopa County | 0.7% |
| city | City of Phoenix | 2.3% |
- Population
- 1,650,070
- Median household income
- $72,092
Phoenix applies a higher city rate to some categories, including a separate rate tier on retail sales of single items above a threshold.
How the difference is calculated
Same arithmetic the calculator on every page runs.
Each combined rate is the sum of its listed state, county, city and special-district components — no rounding is applied before the total. The dollar gap is the rate difference (0.35%) applied to the pre-tax amount: 0.35% of $1,000 is $3.50. Neither figure includes product-specific exemptions; groceries, clothing and digital goods can be taxed at a different rate or not at all, which is covered on each state's rules page.
Questions people ask
Direct answers to the questions this comparison raises.
Which has a higher sales tax rate, Austin or Phoenix?
Phoenix, AZ at 8.6%, versus 8.25% in Austin, TX.
How much more sales tax would I pay in Phoenix on a $1,000 purchase?
About $3.50 more, and roughly $87.50 more on a $25,000 vehicle-sized purchase.
Why do Austin and Phoenix have different rates?
The state share is 6.25% in TX and 5.6% in AZ. The rest comes from county, city and special-district increments stacked on top, which are set locally and listed in full on this page.
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