How much is sales tax on used cars in Phoenix, AZ? This quick guide explains rates, fees, and how to avoid surprises when buying.
Buying a used car feels like a win because duh!
I mean it’s lower prices, slower depreciation, and a wider selection.
But if you’re in Phoenix, there’s one line item that can still surprise you: sales tax.
Most buyers either forget about it or underestimate how much it can impact their final cost.
So let’s break it down.
Here’s what you actually pay in sales tax on used cars in Phoenix AZ, how it’s calculated, when and where it applies, and how to avoid getting blindsided during your next car purchase.
Quick Answers First
Sales tax rate in Phoenix (Maricopa County): 8.6%
Applies to both private and dealer sales? Mostly dealer
Out-of-state buyers? May still owe AZ tax
Any exemptions? A few — we’ll cover them below
Let’s unpack each of these.
What’s the Sales Tax on Used Cars in Phoenix, AZ?
The combined sales tax rate for used vehicles in Phoenix is 8.6%. That’s made up of:
- State sales tax: 5.6%
- Maricopa County tax: 0.7%
- City of Phoenix tax: 2.3%
That means if you buy a $15,000 used vehicle, you could pay $1,290 in tax on top of that.
So yeah, it adds up fast.
Who Actually Pays Sales Tax?
Here’s where things split depending on who you’re buying from:
1. Dealership Sales
Buying from a licensed dealer? Yes — you’ll pay the full sales tax.
It’s typically added at the time of sale and included in your final financing or out-the-door cost.
Most dealers in Phoenix will handle all DMV paperwork and submit tax payments on your behalf.

2. Private Party Sales
Buying from another person — Craigslist, Facebook Marketplace, neighbor, etc.?
You might think you’re skipping tax. You’re not.
While private sellers don’t charge you tax directly, you still owe sales tax when you go to register the vehicle in your name at the Arizona MVD.
They’ll calculate the tax based on Fair Market Value, not necessarily what you paid.
That means if you got a “deal,” the MVD might still expect full tax if they think the car was worth more.
How the Tax Is Calculated
Arizona doesn’t just take your sale price at face value.
Here’s how the state typically calculates it:
- Start with the vehicle’s sale price
- Subtract any trade-in value (but not down payments)
- Add documentation fees, if taxable
- Apply the 8.6% rate
Example Breakdown:
Let’s say you’re buying a used car listed at $18,000.
You trade in a car worth $3,000
Dealer charges a $500 doc fee
Taxable amount: $15,500
Sales tax (8.6%): $1,333
Your out-the-door price jumps to $19,833, and that’s before registration and title fees.
Are There Any Exemptions?
Yes, but they’re rare.
You might qualify for sales tax exemptions in Phoenix if:
- You’re transferring a vehicle between immediate family (e.g., parent to child)
- You’re moving to Arizona and registering a vehicle you already own
- You’re a nonresident military member stationed in AZ
- You’re buying for a nonprofit or tax-exempt entity
But 99% of buyers won’t fall under these categories.
For most everyday buyers, the tax is a sure thing.
Registration Fees Are Separate
A lot of people confuse sales tax with registration fees, but they’re two separate bills.
When registering your used vehicle in Phoenix, you’ll also pay:
Vehicle License Tax (VLT) – based on value
Registration fee – flat $8
Title fee – $4
Air quality fee – $1.50
Plate fee – varies
The VLT is where it gets tricky . It is calculated at 60% of MSRP and adjusted for depreciation.
So even if your car is 5 years old, you’ll still see some decent fees depending on the make and model.
What If You’re Buying Out-of-State?
Let’s say you find a great deal in California or Nevada and want to bring it back to Phoenix.
Here’s what happens:
- Arizona will still expect sales tax when you register the car
- If you already paid tax in another state, AZ may credit it toward your balance, but not always
- You’ll still pay registration and title fees here
Moral of the story? You rarely get to “skip” Arizona’s hand in your wallet, even if you cross state lines.
Why This Matters Before You Shop
A lot of buyers focus on the price tag and forget to add tax into the mix.
So let’s say you’ve got a $10,000 budget.
If you ignore the 8.6% tax, you’re over budget before you even register the car.
Smart buyers plan ahead:
- Run tax estimates based on real car values
- Ask dealers for “out the door” quotes, not just list price
- Factor in registration fees if buying from a private party
Recommended Dealer: DR AUTO SALES, PC
If you’re buying a used vehicle in Phoenix and don’t want to deal with shady fees or surprise taxes, check out DR AUTO SALES, PC.
Here’s why they stand out:
Transparent pricing: They clearly break down costs — no surprises when it’s time to pay
Experienced staff: They’ll walk you through how the tax, title, and registration work
Quality selection: Whether you’re after trucks, sedans, or SUVs, their used inventory is clean and reliable
Financing options: They’ll help you get the paperwork and tax folded into an affordable monthly plan
This spot is worth visiting for buyers looking for used cars for sale in Phoenix. Their reputation for honesty and smooth sales makes them a go-to for locals who hate hidden fees.
Tips to Keep Your Final Cost Low
Nobody wants to pay more than they have to. Here are a few ways to keep your tax bill from blowing up:
✅ Negotiate the Price, Not Just the Monthly Payment
Every dollar you knock off the sale price saves you 8.6 cents in tax.
✅ Factor Trade-Ins Into Your Deal
Arizona lets you deduct the trade-in value from the taxable amount. That’s rare — and helpful.
✅ Buy Near Month-End or Holiday Sales
Dealers are more willing to cut prices, and that can lower both your base cost and your tax total.
✅ Ask for a Full “Out-the-Door” Quote
Don’t guess what you’ll owe. Get everything upfront, including tax, fees, and licensing.

Final Thoughts
Arizona’s sales tax on used cars isn’t the highest in the U.S., but it can still hit your wallet if you’re not ready for it.
Whether you’re buying from a dealer or private party, expect to pay 8.6% on top of your car’s value, plus the usual registration fees.
Planning ahead means fewer surprises, and more control over your budget.
And if you want to skip the stress and know exactly what you’re paying, give DR AUTO SALES, PC a call.
They’re local, trusted, and make the buying process smooth from start to finish.…