Arkansas: Sales Tax Handbook
Arkansas Sales Tax Rate
|State Sales Tax||Local Sales Tax Range||Average Local Tax||Average Combined Tax||Max Combined Tax|
|6.50%||0.00% - 4.75%||1.969%||8.469%||11.25%|
2016 Arkansas Sales Tax Handbook
Arkansas Table of Contents
- List of Local Sales Tax Rates
- Sales Tax Calculator
- Sales Tax Exemption Certificates
- Sales Tax Info For Businessowners
- Taxable vs. Non-Taxable Purchases
- Sales Tax on Cars & Vehicles
- More Information
Arkansas' Sales Tax By The Numbers:
Arkansas has a higher-than-average sales tax, including when local sales taxes from Arkansas's 202 local tax jurisdictions are taken into account.
Rankings by Average State + Local Sales Tax:
Ranked 5th highest by combined state + local sales tax
Ranked 13th highest by per capita revenue from state + local sales taxes ($1,271 per capita)
Rankings by State Sales Tax Only:
Ranked 4th highest by state sales tax rate
Ranked 15th highest by per capita revenue from the statewide sales tax ($960 per capita)
Printable PDF Arkansas Sales Tax Datasheet
Arkansas has a statewide sales tax rate of 6.50%, which has been in place since 1935.
Municipal governments in Arkansas are also allowed to collect a local-option sales tax that ranges from 0.00% to 4.75% across the state, with an average local tax of 1.969% (for a total of 8.469% when combined with the state sales tax). The maximum local tax rate allowed by Arkansas law is 5.50%. You can lookup Arkansas city and county sales tax rates here.
This page provides an overview of the sales tax rates and laws in Arkansas. If you are a business owner and need to learn more about things like getting a sales tax permit, filing a sales tax return, or making tax-exempt purchases for resale see the Arkansas Sales Tax Handbook's Table of Contents above.
What is exempt from sales taxes in Arkansas?
Many states have special sales tax rates that apply to the purchase of certain types of goods, or fully exempt them from the sales tax altogether. Here's how Arkansas taxes five types of commonly-exempted goods:
For more details on what types of goods are specifically exempt from the Arkansas sales tax see Arkansas sales tax exemptions. To learn more about what types of transactions are subject to the sales tax to begin with, see what purchases are taxable in Arkansas? Taxation of vehicle purchases in particular are discussed in the page about Arkansas' sales tax on cars.
Are services subject to sales tax in Arkansas?
"Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In Arkansas, specified services are taxable.
About the Arkansas Sales Tax
The state of Arkansas has a simple sales tax system. The state has a flat sales tax percentage rate that will not vary depending on location. It should be noted, however, that both cities and counties charge their own taxes, which will be added to the flat state tax, to create a compounded total percentage rate. These local additions may vary significantly depending on which jurisdiction you are in.
It is also worth noting that Arkansas is considered to be a Streamlined Sales Tax State, which means that the state has simplified their sales tax reporting requirements to encourage out-of-state businesses to collect and remit sales tax from buyers in Arkansas.
Is the Arkansas Sales Tax Destination-Based or Origin-Based?
Arkansas is a destination-based sales tax state, which means that sales tax rates are determined by the location of the buyer when the transaction is completed. This means that, for orders placed via the internet/mail by a customer within Arkansas from a Arkansas vendor, the vendor must collect a sales tax rate applicable at the buyer's address (including any applicable local sales taxes). This can significantly increase the complication of filing your sales tax return, because different sales tax rates must be charged to different buyers based on their location.
Is Arkansas a Streamlined Sales Tax State?
Arkansas is a member of the Streamlined Sales and Use Tax Agreement, which means that the Arkansas Department of Finance and Administration has taken significant steps to simplify Arkansas's sales tax rules and administration process.
Contact the Arkansas Department of Finance and Administration
The Arkansas Sales Tax is administered by the Arkansas Department of Finance and Administration. You can learn more by visiting the sales tax information website at www.dfa.arkansas.gov.
Phone numbers for the Sales Tax division of the Department of Finance and Administration are as follows:
- Local Phone: (501) 682-7104
Learn More: Our Book Recommendations
If you would like to learn more about how to manage your Arkansas sales taxes, we recommend the following books:
Simplify Arkansas sales tax compliance! We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. Click here to get more information.
Arkansas Sales Tax Rates by Zip Code:
Need an updated list of Arkansas sales tax rates for your business? Download our Arkansas sales tax database!