Taxes in Sedona
Sedona residents pay Arizona's flat 2.5% state income tax, a combined sales tax rate of 10.4% across most of the city -- among the higher rates in this dataset -- and property taxes shaped by the city's genuine Coconino/Yavapai county split.
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Learn moreArizona's flat 2.5% state income tax
Arizona has taxed individual income at a flat 2.5% rate since tax year 2023, continuing through 2026 -- the lowest flat rate of any state that levies an income tax at all. See arizona.js for the full statewide history; this applies to Sedona residents exactly as it does anywhere else in the state.
A real, notably high combined sales tax rate
Sedona's 10.4% combined rate (5.6% AZ state + 1.3% Yavapai County + 3.5% City of Sedona) applies to the four ZIP codes most associated with Sedona proper (86336, 86339, 86340, 86351) -- a separate, lower 6.35% rate was cited for ZIP 86341, which falls in a different tax region. This is notably higher than Flagstaff's 9.386% and Prescott's roughly 8.6%-9.3% in this same batch.
Property tax administration depends on which county a specific address sits in
Because Sedona genuinely straddles the Coconino/Yavapai county line, property tax rates, assessment processes, and billing all depend on which county a specific parcel falls in -- confirm directly for a specific address rather than assuming a single countywide rate applies citywide.
A visitor-subsidized municipal tax base
Sedona's sales and bed tax revenue is 77% visitor-generated ($31 million in FY2023 tax dollars) -- meaning the city's own municipal budget relies heavily on tourism spending rather than resident property/income taxes, a real structural fact distinct from what an individual resident directly pays.
Key takeaways
- Arizona's flat 2.5% state income tax applies in Sedona exactly as it does statewide.
- Sedona's combined sales tax rate (10.4% across most of the city) is notably higher than Flagstaff's or Prescott's in this same batch.
- Property tax administration depends on which county (Coconino or Yavapai) a specific address sits in -- confirm directly given Sedona's genuine cross-county-line geography.
- Sedona's municipal tax base is 77% visitor-generated ($31M in FY2023) -- a real, structural fact about how the city funds itself.
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