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Arizona · What a car really costs*

Buying a car in Arizona.

By The Model Black · Updated October 7, 2026

Arizona charges transaction privilege tax (retail classification) of 5.6% at the state level, and local jurisdictions add their own, which brings a typical vehicle to about 9.1%. A trade-in does reduce the taxable price, which is real money on the deal.

9.1%
Typical combined tax on a vehicle
Full credit
Trade-in reduces the taxable price
~$653.11
Title, registration and fees on a $35,000 car
No cap
Doc fee, set by each dealership

Your payment, cash or finance.

Type your own numbers and see the same car priced as cash and as a loan, with the taxes and state fees for Arizona. Nothing you type leaves this page.

The car
Your trade and money down
Credit and loan
Taxes and fees
Cash
...
out the door
Sales tax
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Title, registration, and fees
...
Trade-in
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Due at the dealership
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Finance
.../mo
 
Amount financed
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Total interest
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Payments plus cash down
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Lease

To see a lease, pick a vehicle. A lease is priced on one car: what it is expected to be worth at the end (its residual) and the leasing company's money factor change by model and by month.

Pick a vehicleHow leasing works

An estimate on the numbers you type, not an offer of credit or a quote from any dealership. Starting loan rates are Rateous's rates for each credit range and term; they are not an offer from any lender. The documentary fee starts at an example figure, the state's legal cap where it has one or $599 where it does not, not any dealership's fee; each dealership sets its own. Taxes and state fees are estimates for Arizona; the dealership's paperwork and your motor vehicle agency have the final numbers. Nothing you type is sent, saved, or used to check your credit.

How the tax works.

The TPT is imposed on the dealer at the dealer's location: state 5.6% plus the county rate (0.5% to 1.1%) plus the city rate. Phoenix and Scottsdale dealers charge 9.1% and 8.0% combined; the highest combined rates in the state are about 11.2%, so the local share ranges roughly 2.0% to 5.6%.

The typical combined rate of about 9.1% is Phoenix's, where most Arizona dealers are located: the state's 5.6%, Maricopa County's 0.7%, and the Phoenix city rate of 2.8%, which drops to 2% on the part of a single item above $14,388.

Arizona generally includes third-party (manufacturer) rebates in the dealer's taxable gross receipts.

Nonresidents buying in Arizona may qualify for a reduced rate or exemption depending on their home state's reciprocity.

Trade-ins: The trade-in allowance for a motor vehicle taken in trade is deductible from the taxable sales price (A.R.S. 42-5061(A)(10)).

Title, registration and fees.

On a $35,000 new car with a $37,000 sticker, registered in Phoenix, no trade-in: the same figures the calculator above uses. The dealership's documentary fee is its own and is not included.

FeeAmount
Title Fee$15.71
Processing Fee$4.00
Tire Fee$11.80
Vehicle License Tax (LIEU)$621.60
In all$653.11
Most of it is the Vehicle License Tax: 60% of the MSRP is the assessed value, taxed at $2.80 per $100 on a new vehicle ($40,000 MSRP: assessed $24,000, VLT $672), and the assessed value drops 16.25% each year. The MVD's own fees are 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, which the dealership collects for the Department of Revenue.
Annual value-based tax: Vehicle License Tax (VLT). $2.80 per $100 of assessed value (60% of MSRP) for new vehicles, $2.89 for used; assessed value reduced 16.25% per year. The VLT is the bulk of the annual registration cost and is deductible as a personal property tax.

Leasing in Arizona.

Arizona taxes a lease one payment at a time: the tax is added to each monthly payment, so you pay it as you go.

Cities in Arizona.

Pick your city for the exact combined rate where you register, plus what title and registration run there.

PhoenixTaxes, fees and what a car costsMesaTaxes, fees and what a car costsChandlerTaxes, fees and what a car costsTempeTaxes, fees and what a car costsGilbertTaxes, fees and what a car costsScottsdaleTaxes, fees and what a car costsGlendaleTaxes, fees and what a car costsPeoriaTaxes, fees and what a car costsSurpriseTaxes, fees and what a car costsAvondaleTaxes, fees and what a car costs
What is my car worth? How The Model Black works Every state

Questions.

How much is sales tax on a car in Arizona?

Arizona charges 5.6% at the state level and local jurisdictions add more, so a typical combined rate on a vehicle is about 9.1% and can reach 11.2% at the high end. The rate is set by the dealership location, so pick your city above for the exact figure.

Does a trade-in lower the sales tax in Arizona?

The trade-in allowance for a motor vehicle taken in trade is deductible from the taxable sales price (A.R.S. 42-5061(A)(10)).

What are title and registration fees in Arizona?

On a $35,000 new car with a $37,000 sticker, registered in Phoenix: Title Fee $15.71, Processing Fee $4.00, Tire Fee $11.80, Vehicle License Tax (LIEU) $621.60, about $653.11 in all. Most of it is the Vehicle License Tax: 60% of the MSRP is the assessed value, taxed at $2.80 per $100 on a new vehicle ($40,000 MSRP: assessed $24,000, VLT $672), and the assessed value drops 16.25% each year. The MVD's own fees are 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, which the dealership collects for the Department of Revenue.

Is the doc fee capped in Arizona?

No. Arizona sets no statutory cap. Each dealership sets its own documentary fee (not a government fee), and each car shows its dealership's fee.

How is a lease taxed in Arizona?

Arizona taxes a lease one payment at a time: the tax is added to each monthly payment, so you pay it as you go.

Where these numbers come from.