Buying without dealership pressure · The Model Black education

Arizona new car taxes and fees, explained.

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.

See your city's numbers

By The Model Black · Published September 19, 2026 · Updated October 6, 2026 · Part of How to buy a new car without dealership pressure or haggling

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.

What is the sales tax on a new car in Arizona?

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.

CityCombined rate on vehiclesTax on a $50,000 car, no trade
Chandler7.8%$3,900
Gilbert8.3%$4,150
Mesa8.3%$4,150
Scottsdale8%$4,000
Phoenix9.1%$4,550
Tempe8.1%$4,050
Tucson8.7%$4,350

How much are the vehicle license tax and registration in Arizona?

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.

How do trade-ins, doc fees, and out-of-state buyers work in Arizona?

Quick answers.

Is there a trade-in tax credit in Arizona?

Yes. Sales tax applies to the selling price minus the value of your trade-in.

Do I pay Arizona sales tax if I live in California or Nevada?

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.

How much is registration on a new car in Arizona?

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.

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