Buying A Used Car In Arizona Sales Tax Review

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

: 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. 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 The entity you purchase from determines whether you

: 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. : Adds a 2

: 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.