Buying A Used Car In Arizona Sales Tax Page

: No state or city sales tax is applied to these "casual sales". When registering the vehicle at the Arizona Motor Vehicle Division (MVD) , you only need to provide a bill of sale to document the private transaction.

: Licensed dealers must pay the state TPT (typically 5.6% ) and usually pass this cost to the buyer. You will also pay additional city and county taxes based on the dealership's location. Maricopa County : Adds a 0.7% excise tax. buying a used car in arizona sales tax

: Adds a 2.8% city tax (as of January 1, 2026), bringing the combined total to 9.1% . 2. Tax Offsets and Use Tax : No state or city sales tax is

: If purchasing from a dealer, you only pay sales tax on the net price (purchase price minus trade-in value). For example, trading in a $20,000 car for a $40,000 purchase means you only pay tax on the remaining $20,000. You will also pay additional city and county

In Arizona , buying a used car from a is generally exempt from sales tax . These are classified as "casual sales" and do not incur the state's Transaction Privilege Tax (TPT). However, if you buy from a dealership , you will likely pay a combined tax rate of approximately 8.1% to 9.1% , depending on the city and county. 1. Private Party vs. Dealership Sales

: If you buy a vehicle from a dealer outside Arizona and register it here, you owe a 5.6% state use tax . You may receive a credit if you already paid sales tax in the state of purchase, provided that state has reciprocity with Arizona.

The entity you purchase from determines whether you pay tax at the time of sale.