Real Arizona deals, worked out
Each example runs through the same calculator above, line by line, so you can check every number yourself.
1Phoenix area: new sedan with a trade-in
A buyer pays $32,000 for a new sedan and trades in $8,000. Tax is on $24,000, and the first-year VLT is on 60% of the price.
| Vehicle price | $32,000.00 |
| Transaction privilege tax (5.6% state + 3% local) on $24,000.00 | $2,064.00 |
| Vehicle license tax (VLT) | $537.60 |
| Title fee | $4.00 |
| Registration fee | $8.00 |
| Air quality research fee | $1.50 |
| Out-the-door | $34,615.10 |
| Due after the $8,000 trade-in | $26,615.10 |
2Private sale: no sales tax
A buyer pays a private seller $15,000 for a three-year-old car that stickered at $28,000. No sales tax is due; the VLT uses the original MSRP, depreciated three years.
| Price paid | $15,000.00 |
| Vehicle license tax (VLT) | $285.21 |
| Title fee | $4.00 |
| Registration fee | $8.00 |
| Air quality research fee | $1.50 |
| Out-the-door | $15,298.71 |
How Arizona taxes a car purchase
Arizona's sales tax is legally a transaction privilege tax on the dealer, who passes it on. The state rate is 5.6%, and counties and cities add their own. The Department of Revenue has long treated a trade-in as reducing the taxable amount when the allowance comes off the price, so the tax is on the difference.
Buying from a private seller is different. The Department of Revenue's vehicle use tax guidance says a purchase from a private party generally owes no tax, so bring the bill of sale to MVD to show it was a private sale.
Arizona car tax at common prices
What a new gas car bought from a dealer comes to at four prices, using a 3% local rate. The trade-in column shows how much a $10,000 trade-in changes the tax under Arizona's rules.
| Price | Tax | Tax with $10,000 trade-in | Taxes + fees |
|---|---|---|---|
| $15,000 | $1,290.00 | $430.00 | $1,555.50 |
| $25,000 | $2,150.00 | $1,290.00 | $2,583.50 |
| $35,000 | $3,010.00 | $2,150.00 | $3,611.50 |
| $50,000 | $4,300.00 | $3,440.00 | $5,153.50 |
The vehicle license tax
Instead of a property tax on cars, Arizona collects a vehicle license tax with each registration. The assessed value starts at 60% of the manufacturer's base retail price and drops 16.25% each year. The rate is $2.80 per $100 of assessed value for a new car and $2.89 for a used one. On a car with a $30,000 base price, that's $504 in the first year.
The calculator uses the price you enter as the base retail price unless you enter the original MSRP. The base retail price excludes options, so your VLT may be a little lower.
Arizona taxes and fees at a glance
Officialfrom a state agency sourceEst.varies or not yet confirmed
| Item (phoenix area: new sedan with a trade-in) | Status | Amount |
|---|---|---|
| Transaction privilege tax (5.6% state + 3% local) | Estimate | $2,064.00 |
| Vehicle license tax (VLT) (yearly) | Estimate | $537.60 |
| Title fee | Official | $4.00 |
| Registration fee (yearly) | Official | $8.00 |
| Air quality research fee (yearly) | Official | $1.50 |
| Total taxes and fees | $2,615.10 |
Arizona car tax FAQ
What is the car sales tax rate in Arizona?
5.6% state plus county and city rates, charged by the dealer on the price after a trade-in.
Do you pay sales tax on a private car sale in Arizona?
Generally no. The Department of Revenue says a purchase from a private party owes no use tax.
How is the Arizona VLT calculated?
60% of the base retail price, reduced 16.25% each year, at $2.80 per $100 for new cars and $2.89 for used.
How much is the Arizona title fee?
$4.
Sources
We build every number from these agency pages. If something has changed, tell us and we'll fix it.