How to Calculate Auto Sales Tax for a Resident of Arizona

by Lauren Farrelly

Each state has its own sales tax rate, and the rate can vary based on the type of product being purchased. In Arizona, a sales tax is not collected on the vehicle purchase but rather a Vehicle License Tax is levied against the vehicle. the tax The tax rate will vary based upon whether it is a new or used vehicle.

The tax rate for a new vehicle is calculated at $2.80 per $100 of the assessed value of the vehicle, and $2.89 for each $100 of the assessed value on used vehicles.

Assess the value of the new vehicle. Multiply the base retail price by 60% (0.60) for a new car.

Determine how many years the vehicle has been previously registered in Arizona (if purchasing a used car). For each year, reduce the retail price by 16.25%.

Determine your Vehicle License Tax. For a $25,000 new vehicle, the equation would be: $25,000 x 0.60 (60% assessed value since it is a new vehicle) = $15,000, then $15,000/$100 = 150, then 150 x $2.80 = $420 vehicle license tax. For a $15,000 used vehicle that has been registered in Arizona for two years, the equation would look like this: 60% - (16.25% x 2) = 27.50, then $15,000 x 0.2750 = $4,125, then $4125/$100 = 41.25, then 41.25 x $2.89 = $119.21 vehicle license tax.

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About the Author

Lauren Farrelly has been writing and producing for television since 2003. She has experience covering sports, business news and general news events for CNBC, ESPN and Bleacher Report. Farrelly has a BA in broadcast journalism from Arizona State University.

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