Do I need to pay sales tax on online purchases in Arizona?

Yes, you generally need to pay sales tax on online purchases in Arizona. The Arizona Department of Revenue requires individuals and businesses that make online purchases to pay sales tax if the seller has a substantial physical presence in the state. This includes online retailers that have a physical store, distribution center, or office in Arizona. However, if the online seller does not have a physical presence in the state, you may be exempt from paying sales tax. It is important to note that if sales tax was not collected at the time of purchase, you are still responsible for paying the use tax directly to the Arizona Department of Revenue. Use tax is essentially the equivalent of sales tax but is paid by the consumer instead of the retailer.