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Arizona car sales tax at a glance
| Arizona | |
|---|---|
| Tax | transaction privilege tax (TPT, retail classification) |
| State rate | 5.6% |
| Average with local taxes (2026 (Tax Foundation midyear, July 1)) | 8.54% |
| Counties and cities add tax | Yes |
| Trade-in lowers the tax | Yes, tax is on the price minus the trade |
| Leases | Tax on each monthly payment |
Checked on the state's official sources on 2026-11-02. Rates change; the state's revenue department has the last word.
How to work out Arizona sales tax on a car
Multiply the taxable price by the rate. In Arizona the trade-in comes off first.
A $30,000 car with a $5,000 trade: $25,000 x 5.6% = $1,400 at the state rate, plus any county or city tax where you register the car.
Dealer sales owe 5.6% state TPT plus county excise and city privilege tax (ADOR). Private sales are exempt (casual sale). Reduced state TPT applies to some nonresident buyers.
Trade-ins
Gross proceeds exclude the value of merchandise traded in when the allowance is deducted from the price before the sale is completed (A.R.S. 42-5001).
Leasing a car in Arizona
Tax on each monthly payment. Arizona: leases fall under the personal property rental classification, so TPT applies to the lessor's gross lease receipts as they are received (A.R.S. 42-5071); long-term leases are sourced to the dealership's city for city tax. The lease calculator uses Arizona's method when you pick the state.
Dealer doc fees
No state cap found.