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 8.6%. A trade-in does reduce the taxable price, which is real money on the deal.
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 8.6% and 8.05% combined; the highest combined rates in the state are about 11.2%, so the local share ranges roughly 2.0% to 5.6%.
Typical local of 3.0% reflects Maricopa County (0.7%) plus the Phoenix city rate (2.3%), where most Arizona dealers are located.
Manufacturer rebate treatment was not confirmed from an ADOR source in this run; Arizona generally includes third-party (manufacturer) rebates in the dealer's taxable gross receipts. Verify before relying on it.
Nonresidents buying in Arizona may qualify for a reduced rate or exemption depending on their home state's reciprocity.
| Fee | Amount |
|---|---|
| Title | $4.00 |
| Registration (value-based) | ~$682 |
| Air quality fee (annual, all vehicles) | $1.50 |
Lease tax applies to each monthly payment rather than to the full price of the car, so you pay it as you go.
Pick your city for the exact combined rate where you register, plus what title and registration run there.
Arizona charges 5.6% at the state level and local jurisdictions add more, so a typical combined rate on a vehicle is about 8.6% 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.
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 is $4.00. Registration fee $8 + air quality fee $1.50 (+$0.25 air quality compliance fee in some areas) plus the Vehicle License Tax: 60% of MSRP is the assessed value, taxed at $2.80 per $100 for a new vehicle ($40,000 MSRP: assessed $24,000, VLT $672). Assessed value drops 16.25% each year.
No. Arizona sets no statutory cap, and dealers typically charge around $499. No statutory cap. Typical figure from CarEdge 2026 survey (secondary).
Tax applies to each monthly payment rather than the whole price of the car, so the tax is spread across the lease.
Rates, fees, and rules change. These figures are estimates for planning, not tax advice; confirm the final numbers with the dealer and your state's motor vehicle agency before you buy.