Buying a new car in Arizona, you pay a combined transaction privilege tax made of the 5.6% state rate plus county and city rates (7.8% to 9.1% across the Phoenix area), a vehicle license tax at registration ($2.80 per $100 of 60% of the MSRP in the first year, dropping yearly), a title and registration fee, and the dealer's documentary fee, which Arizona does not cap.
Arizona charges the selling dealership's city rate on every retail sale, whether you pick up or the dealer delivers anywhere in the state; your own address does not change it. Your trade-in reduces the taxable price. If a dealer ships the car to you outside Arizona, no Arizona sales tax applies. The Model Black estimates the tax on every car from a participating dealership at the rate that applies to your purchase.
These are the rates dealerships located in each city charge; the rate follows the store, not the buyer, so a Mesa resident buying from a Chandler store pays 7.8%. The Model Black prices every car at its selling dealership's rate.
| City | Combined rate on vehicles | Tax on a $50,000 car, no trade |
|---|---|---|
| Chandler | 7.8% | $3,900 |
| Gilbert | 8.3% | $4,150 |
| Mesa | 8.3% | $4,150 |
| Scottsdale | 8% | $4,000 |
| Phoenix | 9.1% | $4,550 |
| Tempe | 8.1% | $4,050 |
| Tucson | 8.7% | $4,350 |
Arizona's vehicle license tax is charged at registration on 60% of the manufacturer's base retail price, at $2.80 per $100 for a new car, reduced 16.25% each year after. A $50,000 car pays about $840 in the first year. The fixed fees are small: a $4 title fee, an $8 registration fee, and a $1.50 air quality research fee, plus a $0.25 air quality compliance fee in some areas. A new car also carries the state tire fee, $2.36 a tire since July 1, 2026, which the dealership collects for the Department of Revenue. The VLT is paid every year, not only at purchase, which is why an Arizona payment quote should separate it from the sales tax.
Yes. Sales tax applies to the selling price minus the value of your trade-in.
Not if the dealer ships the car to you; the sale is exempt under A.R.S. 42-5061 and you pay your home state at registration. If you pick the car up in Arizona, you pay the dealer's city rate and your home state credits the Arizona tax you paid against its own, collecting only the difference.
The vehicle license tax is $2.80 per $100 of 60% of MSRP in year one (about $840 on a $50,000 car), plus the $4 title fee, the $8 registration fee, and the $1.50 air quality research fee ($0.25 more in some areas). A new car also carries the state tire fee, $2.36 a tire. The vehicle license tax declines each year.