Used car sales tax and dealer fees in Arizona
Arizona dealers charge the state's 5.6% transaction privilege tax plus county and city tax (9.1% in Phoenix, with the city part dropping above $14,338). A dealer trade-in is excluded. A private sale between individuals has no sales tax.
By the LotGauge team
The short answer
Arizona dealers charge the state's 5.6% transaction privilege tax plus county and city tax (9.1% in Phoenix, with the city part dropping above $14,338). A dealer trade-in is excluded. A private sale between individuals has no sales tax.
How the rate works in Arizona
Arizona's tax on a dealer sale is the transaction privilege tax (TPT): 5.6% state, plus county and city taxes based on the dealer's location. Phoenix's combined rate is 9.1% (5.6% state, 0.7% Maricopa County and 2.8% city).
Some Arizona cities charge a lower rate on the part of a single item's price above a set amount. In Phoenix the city rate drops from 2.8% to 2.0% on the part of the price over $14,338. State and county tax still apply to the whole price.
Does a trade-in lower the tax in Arizona?
Arizona excludes the value of a trade-in from the state tax base, and the Model City Tax Code excludes trade-in allowances from city tax too, so you pay tax only on the price minus the trade-in.
Buying from a private seller in Arizona
A sale between two private individuals is a casual sale, which Arizona doesn't charge transaction privilege tax or use tax on. You still pay title and registration costs at the MVD.
If you buy from a dealer in another state, Arizona will ask for proof at registration that you paid at least Arizona's use tax rate, and collect the difference if you didn't.
Example: a $25,000 car with a $5,000 trade-in in Phoenix
At Phoenix's rate (9.1% (city rate 2.0% above $14,338)), the tax on a $25,000 used car from a dealer with a $5,000 trade-in is about $1,774.70. Without the trade-in it would be about $2,189.70, so the trade-in saves about $415.00 in tax.
On $20,000 (the price minus the $5,000 trade-in): 8.3% state, county and base city tax ($1,660) plus Phoenix's extra 0.8% on the first $14,338 ($114.70), for about $1,775. Without a trade-in it's about $2,190. Open this example in the calculator, then change the price, trade-in and ZIP to your own.
Dealer doc fees in Arizona
On top of tax, dealers charge a documentation ("doc") fee for paperwork. The average doc fee in Arizona is about $588, against a national average of $471 (CarEdge, State of Dealer Fees 2026).
Arizona has no legal cap on doc fees, so the amount is up to the dealer and it's negotiable. If a dealer's fee is well above $588, ask for it to come off the price.
The LotGauge calculator checks any doc fee you enter against the Arizona average. See also how to get the out-the-door price.
Related guides
How sales tax works on a used car · The trade-in tax credit by state · Private seller vs. dealer · How to read a buyer's order
Sources
Arizona Department of Revenue, TPT rate table. Arizona Department of Revenue, TPR 03-7 (trade-ins, citing A.R.S. § 42-5001). Arizona Department of Revenue, Model City Tax Code trade-in exclusion. Arizona Department of Revenue, Understanding Use Tax. City of Phoenix, Combined Tax Rate Chart (January 2026). Doc fee averages: CarEdge, State of Dealer Fees 2026. Checked November 2026. Tax figures are examples for a typical dealer purchase, not tax advice; confirm the exact amount on your purchase contract.