Arizona workers often wonder whether living in Flagstaff or Mesa changes how much of their paycheck they truly keep. Neither city charges a local income tax, but their Transaction Privilege Tax (sales tax) rates are different—and that affects day-to-day spending. In this guide, we’ll break down Flagstaff and Mesa’s city tax rates, show what the difference means in dollars, and explain how it impacts your overall financial picture in 2025.
Introduction
Arizona workers often ask: Is it more expensive to live in Flagstaff or Mesa when it comes to city taxes? The answer lies in the Transaction Privilege Tax (TPT), Arizona’s version of a sales tax. Neither Flagstaff nor Mesa charges a local income tax, but their city tax rates differ—and that affects how far your paycheck goes.
If you want to see how these city taxes impact your actual earnings, start with the Arizona paycheck tax calculator for a baseline.
How City Taxes Work in Arizona
Arizona doesn’t allow cities to levy their own income taxes. Instead, each city adds a local TPT (sales tax) on top of the state’s 5.6% base rate and county taxes. This combined rate determines what you pay at the register.
Flagstaff Tax Rates in 2025
- City TPT: about 2.49%.
- Total combined rate (state + county + city): roughly 9.39%.
- Flagstaff’s rate is higher in part due to special add-ons, including the “BBB” tax for bed, board, and beverage, and local transit funding.
👉 Put simply, every $100 spent in Flagstaff adds about $9.39 in tax.
Mesa Tax Rates in 2025
- City TPT: about 2.0%.
- Total combined rate (state + county + city): roughly 8.30%.
- Mesa’s rate is lower because it lacks some of the extra local add-ons that Flagstaff imposes.
👉 In Mesa, $100 of purchases comes with about $8.30 in tax.
To understand how these city-level differences combine with statewide withholding, you can also try the Arizona state income tax withholding calculator.
Side-by-Side Comparison
| City | City Tax Rate | Combined Sales Tax (2025) | Cost on $100 Spend |
|---|---|---|---|
| Flagstaff | ~2.49% | ~9.39% | $9.39 |
| Mesa | ~2.00% | ~8.30% | $8.30 |
The difference—just over 1%—may look small, but it adds up. Over $25,000 in annual spending, a Flagstaff worker might pay $275 more in sales tax than someone in Mesa.
What This Means for Arizona Workers
Because income tax is the same statewide (a flat 2.5% in 2025), the real difference between Flagstaff and Mesa comes from what you spend. Workers in Flagstaff see a higher portion of their paycheck go toward local taxes, while Mesa residents keep a bit more of their discretionary income.
For a fuller picture, you can preview paycheck outcomes at different salary levels with the Arizona salary paycheck calculator and then factor in these city tax differences.
FAQs
Do Flagstaff or Mesa charge local income tax?
No. Arizona cities cannot levy income taxes. Only the statewide 2.5% income tax applies.
Why is Flagstaff’s sales tax higher than Mesa’s?
Flagstaff adds specific taxes, such as the BBB tax for tourism and local transit. Mesa does not.
How much more tax would I pay in Flagstaff on $10,000 of purchases?
About $1,000 in Flagstaff vs. $830 in Mesa—an extra $170.
Does sales tax come out of my paycheck directly?
No. It applies only when you spend, but higher rates reduce your effective take-home spending power.
Can I save by shopping in Mesa instead of Flagstaff?
Yes, but only if the savings outweigh travel or convenience costs.
Harry is the creator of ArizonaPaycheckCalculator.com, a trusted resource for accurate and easy-to-use payroll and tax calculators. With a focus on clarity and precision, Harry helps Arizona residents understand their take-home pay, deductions, and withholdings. Dedicated to making complex calculations simple, he combines financial knowledge with user-friendly tools to save users time and confusion.