What is the car sales tax rate in Arizona?

Arizona's state transaction privilege tax (TPT) on vehicle sales is 5.6%. Counties and cities add their own rates on top, so the combined rate in most areas is roughly 7% to 9% depending on where the dealer is located. The state portion is always 5.6%.

Does a trade-in reduce Arizona car sales tax?

Yes. When you trade a vehicle in at an Arizona dealer, the trade-in allowance is subtracted from the purchase price before tax is calculated. You only pay tax on the difference, which can save hundreds of dollars on the transaction.

Is a private-party car sale taxed in Arizona?

Generally no. Arizona's transaction privilege tax applies to sales by licensed dealers, not casual sales between private individuals. If you buy a used car from a private party, you usually owe no state sales tax, only the title and registration (VLT) fees at the MVD.

Is Arizona car tax based on where I live or where I buy?

For dealer sales, Arizona TPT is generally based on the location of the dealer (where the sale occurs), not your home address. That means the city and county rate you pay is the dealer's local rate, which can differ from your own city's rate.

Do I pay sales tax and VLT on a car in Arizona?

Yes, they are separate. Sales tax (TPT) is a one-time charge on the purchase, calculated here. The Vehicle License Tax (VLT) is a yearly registration tax based on the vehicle's assessed value. Both are typically collected when you title and register the vehicle.

Arizona Car Sales Tax Calculator

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The Arizona Car Sales Tax Calculator estimates the one-time tax on a vehicle purchase in Arizona. The state transaction privilege tax (TPT) on vehicles is 5.6%, and your county and city add a local rate on top. Trade-in allowances are subtracted before tax, and private-party sales are generally exempt. The tool combines all of this into the tax owed at the MVD.

How it works

Tax applies to the price after any trade-in:

taxable amount = purchase price - trade-in allowance
state tax = taxable amount x 5.6%
local tax = taxable amount x (county + city rate)
total tax = taxable amount x (5.6% + local rate)
out the door = purchase price + total tax

For a private-party sale between individuals, no TPT is owed, so the tool reports $0 tax. For a dealer sale, the combined rate is generally the dealer’s location rate, not your home city’s.

Example and notes

A $30,000 dealer purchase with a $6,000 trade-in, in a city with a 2.7% local rate:

taxable: 30,000 - 6,000 = $24,000
state (5.6%):  $1,344.00
local (2.7%):  $648.00
total tax (8.3%): $1,992.00
out the door:  $31,992.00

Trade-in lowers the taxable base only at a licensed dealer.
Private-party used-car sales are generally exempt from TPT — you still pay VLT and title fees.
Local rates vary widely; check your dealer’s city/county rate. Runs in your browser.