: 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.
In Arizona , buying a used car from a is generally exempt from sales tax . These are classified as "casual sales" and do not incur the state's Transaction Privilege Tax (TPT). However, if you buy from a dealership , you will likely pay a combined tax rate of approximately 8.1% to 9.1% , depending on the city and county. 1. Private Party vs. Dealership Sales buying a used car in arizona sales tax
: 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. : No state or city sales tax is
: 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. These are classified as "casual sales" and do
: Casual sales from out-of-state private parties are also generally exempt from Arizona use tax. Arizona Used Car Sales Tax: What You Need to Know
The entity you purchase from determines whether you pay tax at the time of sale.