County or local sales tax is specific to each area within Arizona, and that’s tacked on in addition to the statewide rate. Counties in Arizona can charge up to .7% in sales tax, while cities can charge up to 2.5%.

Pinal County: Combined 11.2% (the highest sales tax rate in Arizona)

Mohave County: Combined 8.6%

Maricopa County (Tucson, Phoenix): Combined 6.3%

Trade-ins can help you lower the taxable cost of your car

A trade-in

can help you circumvent some sales tax in Arizona. That’s because most dealers offer the option to trade in your used car for a credit toward your new one, and you’ll save money on the (taxable) difference.

Example: Say you’re planning on hitting the desert roads in a brand new car, the

Ford F-150

Car price: $30,000

Trade-in value of used vehicle: $5,000

Final payment: $25,000

In this example, you’ll only be paying the combined sales tax on the $25,000 amount at the time of purchase. Thanks to your trade-in vehicle, you can avoid paying the full sales price of the new model.

Dealers can also help you lower taxable costs by applying rebates or incentives to your motor vehicle in Arizona, even if it’s not a trade-in. For instance, if there’s a $1,000 cash rebate applied to a $30,000 purchase price F-150, you’ll just pay the Arizona sales tax on the $29,000.

How to calculate sales tax on a car in Arizona

It’s easy to calculate the sales tax on your car with the state’s official

Vehicle Use Tax Calculator

from the Arizona Department of Revenue. You can determine the sales tax on your purchase according to your dealership’s zip code, which provides the applicable local and state tax rates.

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.

Exemptions from Arizona car sales tax

In some cases, you might not have to worry about sales tax on your vehicle at all. You may apply for an exemption if:

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 tribal reservation

You’re widowed or disabled

You’re an active or veteran military member

Here is the complete

list of eligible Arizona residents

(and application forms).

How to estimate Arizona tax, title, and registration fees

State sales tax will not be the only line item on the receipt for your car purchase. The DMV will also charge you title, registration, license plate transfer, and doc 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

One less common fee to look out for in Arizona is a

Vehicle License Tax (VLT)

. This is 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.