Arizona Vehicle Tax Overview
Arizona applies a transaction privilege tax (TPT) instead of a traditional sales tax on vehicle purchases. The state also has a Vehicle License Tax (VLT) that's assessed annually based on the vehicle's value.
Transaction Privilege Tax Structure
- State Rate: 5.6%
- County Rates: 0.7% to 1.3%
- City Rates: Up to 4%
- Private Party Sales: Use tax applies
Major City Total Rates
- Phoenix: 8.6% (5.6% state + 0.7% county + 2.3% city)
- Tucson: 8.7%
- Mesa: 8.3%
- Scottsdale: 8.05%
- Glendale: 9.2%
Vehicle License Tax (VLT)
- New Vehicles: 60% of MSRP
- Used Vehicles: Based on depreciated value
- Annual Rate: $2.80 per $100 of assessed value
- Minimum VLT: $10
Registration Fees (2024)
- Basic Registration: $8
- Public Safety Fee: $32
- Air Quality Research Fee: $1.50
- Title Fee: $4
- License Plate Fee: $8
Tax Exemptions
- Native Americans on reservations
- Disabled veterans (specific conditions)
- Certain nonprofit organizations
- Military personnel (specific conditions)
- Government vehicles
Registration Requirements
- New Residents: 7 months to register
- Insurance: Mandatory coverage
- Documentation:
- Valid Arizona driver's license
- Proof of insurance
- Vehicle title
- Emissions test (if required)
Emissions Testing
- Required Areas:
- Phoenix Metropolitan Area
- Tucson Area (Pima County)
- Test Fee: $20-$35
- Frequency: Biennial for most vehicles
- Exemptions:
- Model years newer than 5 years
- Electric vehicles
- Classic/collector vehicles
Special Vehicle Categories
- Alternative Fuel Vehicles:
- Lower VLT rate
- HOV lane access
- Special plates available
- Classic Cars:
- Collector vehicle plates
- Reduced registration fees
- Emissions exemptions
Regional Considerations
- Phoenix Metro:
- Emissions testing required
- Higher combined tax rates
- Rural Areas:
- No emissions testing
- Lower combined tax rates
Money-Saving Tips
- Compare city tax rates before purchase
- Consider alternative fuel vehicles
- Check for veteran benefits
- Research multi-year registration options
- Maintain emissions compliance
Common Questions
- Q: How is VLT calculated?
A: Based on MSRP and depreciation schedule
- Q: Do I need emissions testing?
A: Required in Phoenix and Tucson areas
- Q: Can I transfer plates?
A: Yes, with applicable fees