Arizona car tax
Arizona charges a yearly Vehicle License Tax (VLT) in place of personal property tax. The tax value starts at 60% of the manufacturer's base retail price and drops 16.25% each year. VLT is paid with registration to ADOT MVD.
A.R.S. §28-5801. Year 1 = 60% of MSRP × $2.80 per $100. Each later year the value drops 16.25% and the rate is $2.89 per $100. The minimum is $10. Age is counted in 12-month periods from the car's first registration, not from the model year.
Arizona car tax calculator
- $35,000 MSRP × 12.1624 mills (vehicle age 2 yr) = $425.68
Based on the manufacturer's original list price (MSRP), not what you paid. Your bill may be prorated for months you owned the car.
How the tax drops as a $35,000 car ages in Arizona
Same car, each year of ownership. The rate falls as the car gets older.
Buying a car in Arizona: one-time tax
Arizona transaction privilege (sales) tax — 5.6%, plus local sales tax where you live. Your trade-in is subtracted before tax.
City and county TPT is added on top. Private-party sales are not taxed.
Registration and due dates
Registration is $8, plus a $1.50 air-quality fee and a $32 public safety fee. Title costs $4.
Paid every year with registration renewal by the expiration date. Owners can renew for 1, 2, 3, 4, or 5 years.
Cut what your car costs in Arizona
Car tax is set by your town, but your loan and insurance aren't. Refinancing a car loan at a lower rate often saves more each year than the tax itself.
Questions
How is the Arizona VLT calculated?
In the first year the value is 60% of the base retail price and the tax is $2.80 per $100. Each later year the value drops 16.25% and the tax is $2.89 per $100.
Is the VLT deductible?
Yes. VLT is value-based, so it can be deducted as a personal property tax on a federal itemized return.
Does buying a used car reset the VLT?
No. VLT follows the car's age from its first registration, not when you bought it.
Sources
Last checked October 14, 2026. Rates are for passenger cars owned by individuals; leased, business and specialty vehicles can differ. Confirm with your tax collector or commissioner of the revenue.