Buying a car in Arizona

Sales tax on a car in Arizona

Arizona charges a state transaction privilege tax (TPT) of 5.6% on vehicle purchases.

County excise taxes and city privilege taxes are added to the 5.6% state rate, and the rates vary by location.

Casual sales between private parties are not taxable. A vehicle bought from an out-of-state dealer is subject to state use tax at 5.6% plus any city use tax, collected by the MVD at registration.

Does a trade-in lower the tax?

The value of a vehicle traded in is deducted from the price before tax is calculated, and a lien on the trade-in does not reduce the deduction.

Example, state tax only. On a $30,000 car with a $10,000 trade-in, the taxable amount is $20,000, so the state tax is about $1,120. Without the trade-in it would be $1,680. Local taxes and fees are extra.

Dealer doc fees in Arizona

Arizona law (A.R.S. 44-1371) requires a dealer that charges a document fee to disclose clearly in its vehicle advertisements that the fee will be charged. The statute does not set a maximum amount.

Whatever the rule, the fee is part of your out-the-door price. Ask for it in the written quote and negotiate the total, not the line. See dealer fees explained.

Title and registration

Titles and registrations are handled by the Arizona Department of Transportation, Motor Vehicle Division. Arizona law requires a buyer to apply for a title within 15 days of purchase. A vehicle bought at an Arizona dealership is titled and registered at the dealership.

Also worth knowing

• Registration fees may include a vehicle license tax, a registration fee, and an air quality fee, based on the vehicle's type, age, and value.
• An emissions test is required for some title transfers.
• Some private-party title transfers can be completed online through eTitle Transfer on AZ MVD Now.

Sources

1. Arizona Department of Revenue: Motor Vehicle Sales (azdor.gov)
2. Arizona Department of Revenue: Transaction Privilege Tax Ruling TPR 96-1, Vehicle Trade-Ins (azdor.gov)
3. Arizona Department of Revenue: Vehicle Use Tax and Calculator Questions and Answers (azdor.gov)
4. Arizona Department of Revenue: Transaction Privilege and Other Tax Rate Tables, effective July 1, 2026 (azdor.gov)
5. Arizona Revised Statutes 44-1371: Motor vehicle transactions (azleg.gov)
6. ADOT Motor Vehicle Division: Buying a Vehicle (azdot.gov)

Last checked Nov 10, 2026; next review by Feb 10, 2027. This page explains how the rules generally work and is not tax or legal advice. Rules change, so confirm with the state. Report an error.