Arizona Car Sales Tax Calculator Tax, title & license fees (2026)
Transaction privilege tax (TPT) at dealer location, or use tax at domicile · 5.6% state rate
Calculate Arizona car tax & fees
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How much is car sales tax in Arizona?
Arizona doesn't have a traditional sales tax. Dealers pay a transaction privilege tax (TPT): 5.6% for the state plus the county and city rates where the dealer is located. Private sales aren't taxed at all, but every owner pays an annual vehicle license tax (VLT) based on the car's original retail price.
For a dealer sale, the taxable amount is the price plus the doc fee, minus your trade-in and any rebate assigned to the dealer. Multiply by 5.6% plus the local rates at the dealer's location. If you buy out of state, use tax is charged at your home rate, minus tax you paid elsewhere.
The VLT is the big recurring cost. In year one it's $2.80 for every $100 of assessed value, and the assessed value is 60% of the manufacturer's base retail price, not what you paid. Each later year the value drops 16.25% and the rate becomes $2.89 per $100. The minimum is $10.
Fixed fees are small: $4 title, $8 registration ($9 for motorcycles) and a $1.50 air quality fee that electric vehicles don't pay.
- Taxable base = price + doc fee - trade-in - assigned rebate
- Tax = taxable base x (5.6% state + county/city rate)
- Out-of-state purchase: use tax at domicile rate minus tax paid elsewhere
- VLT = (assessed value / 100) x rate, minimum $10
- Total = tax + title + registration + air quality fee + area fee + VLT + permit
Arizona car tax example with real numbers
New car from a Phoenix-area dealer
You pay $32,000 for a new car with a $34,000 base retail price, trade in a car worth $5,000, receive a $1,000 rebate assigned to the dealer and pay a $499 doc fee. The dealer's county and city rates total 2.5%.
- Taxable amount: $32,000 + $499 − $5,000 − $1,000 = $26,499.
- State TPT at 5.6%: $1,483.94. County and city TPT at 2.5%: $662.48.
- VLT: 60% of $34,000 is $20,400; at $2.80 per $100 that's $571.20.
- With title, registration and the air quality fee, the first-year total is about $2,731.12.
| Taxes | |
|---|---|
| State TPT5.6% of $26,499.00 | $1,483.94 |
| County/city TPT2.5% of $26,499.00 | $662.48 |
| Title & registration | |
| Title | $4 |
| Registration | $8 |
| Air quality fee | $1.50 |
| Vehicle license tax (VLT)$2.80 per $100 of $20,400.00 | $571.20 |
| Estimated total | $2,731.12 |
Computed with the calculator on this page using the figures in our data. Local add-ons not mentioned in the example are left out.
Exceptions that change your Arizona tax bill
Private-party sales
A casual sale between individuals isn't subject to TPT or use tax. You still pay title, registration, VLT and the air quality fee.
Gifts and inheritance
No TPT is due on a gift or an inherited vehicle. Title, registration and VLT still apply.
Electric vehicles
EVs skip the $1.50 air quality fee and pay no separate EV surcharge.
Bought out of state
Use tax is charged at your home location's combined rate, with credit for sales tax you paid in the other state.
Arizona vehicle sales tax rates
| State rate | 5.6% |
|---|---|
| Local rate | County/city rate at dealer location (or buyer domicile for out-of-state purchases) |
Arizona title & registration fees
| Title | $4 |
|---|---|
| Registration passenger | $8 |
| Registration motorcycle | $9 |
| Air quality | $1.50 |
| Air quality EV | $0 |
| Area a b fee | $0.25 |
| Nonresident permit | $15 |
| Vehicle license tax |
|
Arizona car tax exemptions & special cases
| Casual private sale | No TPT or use tax; title, registration, VLT and air fee still due |
|---|---|
| Gift | No TPT; title, registration and VLT still due |
| Inheritance / non-probate | No TPT; title, registration and VLT still due |
| Electric vehicle | No $1.50 air quality fee; no separate EV surcharge |
| VLT base | Uses manufacturer's base retail price, not negotiated sale price |
| Title deadline | Within 15 days of purchase |
Arizona car tax FAQ
Is the VLT based on what I paid?
No. It's based on 60% of the manufacturer's base retail price, reduced 16.25% each year after the first.
Do I pay sales tax on a private sale in Arizona?
No. Casual private sales aren't taxed, but you'll still pay the VLT and registration fees.
What's the minimum VLT?
$10 a year.
Which local rate applies?
For dealer sales, the county and city rates where the dealer is located. For out-of-state purchases, the rate where you live.
Sources & verification
We checked these figures against the following official pages on October 7, 2026:
- www.azleg.gov/ars/28/02003.htm
- www.azleg.gov/ars/28/05801.htm
- www.azleg.gov/ars/49/00551.htm
- azdor.gov/business/transaction-privilege-tax/motor-vehicle-sales
Not yet confirmed on an official page: nonresident permit 15. Treat these figures as estimates.
Spotted something out of date? Tell us and we'll recheck it.