Arizona aircraft sales and use tax

Do you pay sales tax on an aircraft bought in Arizona?

Taxed. 5.6 percent state transaction privilege tax plus county and city tax, which vary by location.

• Table 1 provides the tax rates which combine the state's transaction privilege tax rate of 5.6% and the county excise tax rate.

  Arizona Department of Revenue, TPT and Other Tax Rate Tables, effective September 1, 2026 · checked October 18, 2026

Do you owe use tax on an aircraft bought outside Arizona?

Taxed. Use tax applies to an aircraft bought elsewhere for use in Arizona, and ADOT will not register the aircraft until it has been paid.

• unless the applicable tax has been paid as shown by a receipt from the collecting officer.

  Arizona Revised Statutes, A.R.S. 28-8322 · checked October 18, 2026

What aircraft sales tax exemptions does Arizona have?

Depends. Aircraft sold to carriers and operators carrying persons for hire, to foreign governments, and to nonresidents who will not use them in Arizona except to remove them are exempt from the retail tax.

• Persons who are not residents of this state and who will not use such property in this state

  Arizona Revised Statutes, A.R.S. 42-5061(B)(8)(c) · checked October 18, 2026

Are aircraft rentals taxed in Arizona?

Taxed. Renting an aircraft falls under the personal property rental classification. The only aircraft exemption there is for nonprofit, accredited colleges renting to their own students and staff.

• The personal property rental classification is comprised of the business of leasing or renting tangible personal property

  Arizona Revised Statutes, A.R.S. 42-5071(A) · checked October 18, 2026

• Leasing or renting aircraft, flight simulators or similar training equipment to students or staff by nonprofit,

  Arizona Revised Statutes, A.R.S. 42-5071(A)(6) · checked October 18, 2026

Is flight instruction taxed in Arizona?

Not clearly published. No exemption for flight instruction at a for-profit school was found. How a combined dual-instruction charge splits between the taxable aircraft rental and the instructor's service is not clearly published.

The state's published guidance does not clearly answer this.

Are aircraft parts and maintenance labor taxed in Arizona?

Not clearly published. Repair equipment and supplies used for certificated carriers' aircraft are exempt. For general aviation, not clearly published; a 2025 bill (SB 1085) proposed widening the exemption, and whether it passed has not been confirmed.

• Machinery, tools, equipment and related supplies used or consumed directly in repairing, remodeling or maintaining aircraft

  Arizona Revised Statutes, A.R.S. 42-5061(B)(9) · checked October 18, 2026

Does Arizona register or tax aircraft every year?

Taxed. Aircraft based in Arizona are registered with ADOT each year and pay an aircraft license tax of 0.5 percent of the average fair market value for the make, model and year, at least $20. A nonresident's aircraft based here 90 consecutive days or less, with no intrastate commercial use, is excepted.

• on the basis of one-half percent of the average fair market value

  Arizona Revised Statutes, A.R.S. 28-8335 · checked October 18, 2026

• at least $20 for a full year of registration.

  Arizona Revised Statutes, A.R.S. 28-8335 · checked October 18, 2026

• Owned by a nonresident who bases the aircraft in this state for a period of not more than ninety consecutive days

  Arizona Revised Statutes, A.R.S. 28-8322 · checked October 18, 2026