Arizona used car dealer paperwork and sales tax guide
How Arizona sales tax works on a used-car deal, how trade-ins and dealer fees are treated, and the title forms and notices a Arizona dealer prints.
Last checked November 14, 2026
This is a plain-language summary of how a used-car deal works out in Arizona: the sales tax, what happens to a trade-in, how dealer fees are treated, and the paperwork a dealer prints. DMS Apex uses these same rules to work out each Arizona deal.
Arizona tax and fees at a glance
| Item | Arizona |
|---|---|
| State tax | 5.6% state rate plus local tax |
| Who pays it | Collected by the dealer |
| Trade-in | Reduces the tax |
| Document fee | Not part of the taxable amount |
| Service contract | Not taxed |
| Starting title fee in DMS Apex | $4 |
How Arizona sales tax is worked out
Arizona: 5.6% state transaction privilege tax plus the county and city rates (type the combined rate from the Department of Revenue table) on the price and other charges, less the trade-in. A reasonable, separately stated document fee and a separately stated service contract are not taxed. The Buyer's Order prints the 15-day / 500-mile warranty statement Arizona requires on a used-vehicle agreement. Title fee starts at $4.
Other required notices
Arizona requires the following wording on the Buyer's Order. DMS Apex prints it.
- The seller hereby warrants that this vehicle will be fit for the ordinary purposes for which the vehicle is used for 15 days or 500 miles after delivery, whichever is earlier, except with regard to particular defects disclosed on the first page of this agreement. You (the purchaser) will have to pay up to $25.00 for each of the first two repairs if the warranty is violated.
Arizona paperwork a dealer prints
DMS Apex prints these documents for a Arizona deal, all in black and white:
- Buyer's Order with Arizona's used-vehicle warranty statement
- Buyers Guide
This is general information, not legal or tax advice. Arizona rules change: confirm current requirements with the Arizona Department of Transportation Motor Vehicle Division or the Arizona Department of Revenue.
Common questions
How much is sales tax on a used car in Arizona?
5.6% state rate plus local tax. A trade-in reduces the taxable amount. See the table above and confirm the current rate with the Arizona Department of Transportation Motor Vehicle Division or the Arizona Department of Revenue.
Does a trade-in lower the tax in Arizona?
Yes. In Arizona the trade-in allowance reduces the amount the tax is figured on.
Is the dealer fee taxed in Arizona?
No. In DMS Apex the document fee is not part of the taxable amount for Arizona.
Does DMS Apex print Arizona dealer forms?
Yes. It prints Buyer's Order with Arizona's used-vehicle warranty statement, Buyers Guide.
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