Buying a car in Arizona

Every figure below is sourced to Arizona’s own revenue or motor vehicle publications and dated. Estimates only.

Arizona at a glance

State sales tax
5.6%
Local tax is added on top in most states — treat this as a floor.
Trade-in credit
Reduces your tax
You are taxed on the price less your trade-in allowance.
Dealer doc fee
Not confirmed
We have not confirmed a cap for this state, so we do not claim one.
Title and registration
$12.00
$4.00 title + $8.00 registration.

Arizona taxes the car every year, not just at purchase

A recurring annual tax on the vehicle’s value applies here — assessed at 60% of value at a representative 2.8% rate. It never appears in a monthly payment and is easy to miss when comparing states.Arizona's Vehicle License Tax, collected annually with registration in place of a conventional local property tax. It genuinely has the ratio-times-rate shape, with two caveats. (1) The rate is set STATEWIDE by statute rather than by a locality, so the 'typicalLocalRatePct' label is a schema artifact: $2.80 per $100 of assessed value for NEW vehicles, $2.89 for USED. (2) These are YEAR-ONE figures. The 60% ratio is reduced by 16.25% for each year since the vehicle was first registered in Arizona, so applying 60% x 2.80% flat in later years overstates the tax substantially. ADOT's own example: a $30,000 vehicle owes $504 in year one, $435.67 in year two, $364.87 in year three.

Local tax in Arizona

Arizona's tax is a transaction privilege tax on the retail classification, imposed on the seller rather than the buyer. The state retail rate is 5.6%; counties and cities levy their own additional TPT on top, published in ADOR's rate tables. The state use tax rate is also 5.6%.