Car Sales Tax in Arizona
Arizona drivers can expect to pay an average combined total sales tax of 6.3% on car purchases.
Written by Kaitlin May
Reviewed by Jessica Barrett
Although it’s not the highest, Arizona has a substantial statewide sales tax of 5.6%. The total amount applied to car purchases will include local government sales tax rates, which can add up to 6.3% or higher in Arizona.
Going into a car purchase with a budget is essential, but there are more costs to consider than just the price tag on the vehicle. Sales tax can make an impact on the price of the vehicle you’re looking at and each area has a unique rate applied to purchases.
Instead of getting blindsided by the sales tax in your Arizona zip code, it’s best to pinpoint what the sales tax rates will look like ahead of time. If you don’t know where to look, don’t worry—the
car insurance
comparison app Jerry
has drawn up a complete guide to car sales tax in Arizona.Find out if you can reduce your monthly car payments in minutes
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How much is the car sales tax rate in Arizona?
All used and new car purchases in Arizona have the statewide sales tax of 5.6% applied to them. Unfortunately, the price isn’t capped there. County or local sales tax is specific to each area within Arizona, and that’s tacked on in addition to the statewide rate.
If you’re a Pinal County resident, you’re paying the highest sales tax rate in Arizona at a combined 11.2%. If you live in Mohave, the northwest corner of the Grand Canyon state, your sales tax rate is the lowest at 8.6%.
Keep in mind that counties in Arizona can charge up to .7% in sales tax, while cities can charge up to 2.5%.
How are car trade-ins taxed in Arizona?
One way to circumvent some sales tax in Arizona is with a trade-in. Since most dealers offer the option to trade in your old vehicle for a credit toward your new one, you can save money on the difference.
Say you’re planning on hitting the desert roads in a brand new
Ford F-150
for close to $30,000. If you have a trade-in worth $5,000, you’ll receive a $5,000 credit toward your new ride—placing your payment around $25,000. That means you’ll only be paying the combined sales tax on the $25,000 amount instead of the full price of the new model.You’ll also be in luck if your dealer applies rebates or incentives to your purchase in Arizona. If there’s a $1,000 cash rebate applied to a $30,000 F-150, you’ll just pay the sales tax on the $29,000.
How to calculate sales tax on a car in Arizona
Put the whiteboard away—calculating the sales tax on your car in Arizona has never been easier thanks to this
Vehicle Use Tax Calculator
. Offered by the state of Arizona, the simple tool helps you determine the sales tax on your purchase according to your dealership’s zip code.Key Takeaway Add your local or county sales tax to the statewide sales tax of 5.6% in Arizona to estimate the total combined sales tax where you live.
MORE:
Car loan in Arizona 2022
Exemptions from Arizona car sales tax
In some cases, you won’t have to worry about sales tax on your vehicle at all. It’s possible to apply for an exemption if any of these scenarios apply to you:
- You have an electric vehicle
- You’re a health officer
- You represent a nonprofit or religious organization
- You’re the survivor of a fallen military member
- You live on a reservation as a tribal member
- You’re widowed or disabled
- You’re an active or veteran military member
How to estimate Arizona tax, title, and registration fees
Sales tax won’t be the only line item on the receipt for your car purchase. Keep in mind that title, registration, license plate transfer, and documentation fees all play a role in the final price.
Here’s what you can expect to pay for each additional expense in Arizona:
Cost | Average cost |
|---|---|
Sales tax | 6.3% |
Registration fee | $8 |
Title fee | $4 |
Air quality research fee | $1.50 |
Documentation fee | $410 |
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* checking your rate won’t affect your credit score
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One less common fee to look out for in Arizona is a Vehicle License Tax (VLT). It’s an annual fee for your vehicle’s registration that starts at 60% of the manufacturer’s base retail price and is reduced by 16.25% for the years following the initial registration.
How to find affordable car insurance in Arizona
Once you’ve navigated through the sales tax and fees for your car purchase, there’s one more stop:
car insurance
. You’ll need to protect your investment with the right coverage, and that’s never been easier than it is with Jerry
.Jerry’s a one-stop car insurance shop with the best quotes from over 50 top insurance companies. Once you choose from curated quotes, Jerry will handle the leg work so you can skip the paperwork and unnecessary phone calls.
With your new policy, you can join Jerry users to save an average of $800+ per year!
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FAQ
How much is sales tax on a used car in Arizona?
Used car purchases are treated the same way as new car deals in Arizona, so the statewide tax of 5.6% will be applied to your bill. You’ll need to add your local or county sales tax to that amount to get the total combined sales tax on your vehicle.
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