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. Your trade-in reduces the taxable price. If a dealer ships the car to you outside Arizona, no Arizona sales tax applies. Broker Black prices every partner car with the exact rate for the city where you register.
Rates are the combined state, county, and city rates that apply to vehicle sales and change when a city updates its code. The Broker Black city pages carry the current rate for each city and reprice the examples from it.
| 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. Title and registration add a small fixed fee. 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 only the 5.6% state portion.
The vehicle license tax is $2.80 per $100 of 60% of MSRP in year one (about $840 on a $50,000 car), plus a small title and registration fee. It declines each year.