The base sales tax rate in Arkansas is 6.5%, and this applies to the whole state. However, the rate you will likely pay as a consumer or have to collect as a business will differ depending on your specific location within the state, or where your customers are having their orders shipped to, we call these; local sales tax rates.

Sales tax in Arkansas is similar to other states in the sense that business owners are responsible to collect and convey the sales tax which the business collects over to the Arkansas Department of Finance and Administration, as “sales and use tax”.

So, the way in which Arkansas’ sales tax is calculated is the base rate of 6.5% throughout the whole state, with the additional percentage rate of each county, town, or district added on to it, this will equal the total Arkansas sales tax you will have to pay as a consumer or collect as a business. The sales and use tax rate in a specific Arkansas location has three parts: the state tax rate, the local tax rate, and any district tax rate that may be in effect.

Sales tax in Arkansas

What is the sales tax in Arkansas? It is 6.5%.

Any retail, gas station/convenience store, restaurant-related business, or similar business you visit in Arkansas should charge you the prevailing rate of sales tax in Arkansas according to the county, and or city they are located in.

While paying sales tax is mostly applicable to the sale of products, it may also apply to certain service-related businesses such as sales of gas, water, electricity, most solid waste disposal, telephone, and prepaid telecommunications and repair services. If you are unsure whether your business should collect Arkansas sales tax, you may want to visit the Arkansas Department of Finance and Administration.

As a consumer, paying the state sales tax for Arkansas is a seamless process that you do not need to worry about too much when dining out at a restaurant, going to do the shopping, or even taking your car in for a service. However, as a business owner or someone looking to start a business in Arkansas, it is a totally different matter.

If you are responsible for collecting sales tax from your customers, it is essential to know and understand exactly what your responsibilities entail. These include where you need to remit your businesses collected sales tax to, following the rules of Arkansas’ sales tax collection, and ensuring that you are paying the state of Arkansas the correct sales tax you collect and on time.

In some instances, this may apply to online businesses, and if you are a participant of the Amazon FBA program, or have an online business with a lot of your sales taking place in Arkansas, you will most likely be subject to sales tax collection depending on where your products are warehoused and the volume of your annual transactions. This is why it is crucial if you are unsure to check with the guidelines for online business owners on the Arkansas Department of Finance and Administration website.

State Sales Tax for Arkansas

The state sales tax in Arkansas is 6.5%, however, the range of sales tax you will have to pay with the state rate plus the county, town, or district rates is between 6.5%-11.5%, with the range of local sales tax rates being 0%-5%. To help, we have included a table (below) that lists the sales tax rate for each county within the state. The table combines the base rate of 5.6% and the local county rate to give you a total tax rate for each county within Arkansas.

Arkansas has a lot of different counties, 75 in total. The Arkansas sales tax rate for most counties is 2%-2.5%, which means that most counties, when combined with the statewide sales tax rate, charge a total of 8%-8.5%.

What you will find in the U.S., which is different from some other countries, is that when you see the prices of products such as clothes in a retail store, or food on a menu in a restaurant, it is usually that price plus state, county, and city sales tax.

So, when you checkout your items in a store or request the bill at a restaurant, you will likely pay the price you saw on the label or menu + state + county and sometimes + city or other local sales tax. This often takes foreigners and those not used to this system by surprise because, in many other countries, the price you see is the price you pay, and the price quoted includes any sales tax or value-added tax (VAT).

Example of Arkansas Sales Tax Rules in Little Rock

To get a basic understanding of how Arkansas sales tax rules are imposed on state, county, city, and other local sales and use tax on most products and some services purchased in the state are simplified as you can make a quick calculation of the amount of Arkansas sales tax you will pay based on the product price and sales tax rate charged within the county you are purchasing from.

So, if you are going out for a meal in Pulaski County, the sales tax is 1%. Usually, you would add this to the base rate of Arkansas sales tax, which is 6.5%, and you would expect to pay a total of 7.5% sales tax as the table below will suggest. However, because you are not just in Pulaski, but more specifically Little Rock, which is a city located in Pulaski, you must pay the Little Rock sales tax of 1.5% along with the Pulaski and Arkansas sales tax rates, 6.5% + 1% + 1.5% = 9%.

So, when you spend $250 in a Little Rock, AR restaurant, and ask for the check (bill), expect to see a further 9% added to the total, making the total amount you will pay $272.50 ($22.50 in Arkansas sales tax).

State of Arkansas Sales Tax Rules for Businesses

As a business owner selling taxable goods or services, you act as an agent of the state of Arkansas by collecting tax from purchasers and passing it over to the Arkansas Department of Finance and Administration.

You must be aware that any sales tax collected from Arkansas’ residents belongs to the Department, meaning that it is entirely your responsibility as a business owner who collects sales tax to manage the amount of tax you collect and convey to the Department of Finance and Administration, which will result in avoiding any penalties and accumulative interest.

There is a specific terminology surrounding whether, as a business, you need to collect Arkansas sales tax. This is called “Sales Tax Nexus.” It basically means, does your business have a “significant presence” in the state. It used to be that sales tax nexus only applied to businesses with a physical presence in the state, such as having employees, an office or warehouse, or a retail store.

Any of the following criteria may be considered by the state of Arkansas as qualifying a seller/business to have sales tax nexus:

  • An office or place of business (owned or leased)
  • A warehouse or agency in Arkansas (owned or leased)
  • Real or personal property

Your business will qualify for sales tax nexus in Arkansas if, as a vendor, you turnover more than $100,000 in sales annually or more than 200 transactions within the state. This means that the state considers these vendors obligated to collect and remit sales tax from buyers within Arkansas.

To learn exactly what the Arkansas Department of Finance and Administration determines to be sales tax nexus in Arkansas, head over to the specific PDF provided on the website.

If you go to page 1 under, “doing business as”, you will see what Arkansas constitutes for your business as being eligible for collecting sales tax from your customers.

Check out the Avalara website that gives you the specific breakdown of various Arkansas sales tax rates, not just for counties, but for cities and towns in Arkansas. The rates you see below will often be higher than the flat-rate sales tax charges per county because each city and town charges more which drives up the overall Arkansas sales tax based on the zip code you are located in.

You can also visit the Arkansas Sales & Use Tax Rate Look Up page that allows you to enter a street address, city, and zip code to determine the exact tax jurisdiction and reporting criteria.

The table below lists the 75 Arkansas counties that charge sales tax within the state. Arkansas’ sales tax is based on the base rate plus the county/district rate, so the rates below are indicative of the total Arkansas sales tax you will pay or have to collect from your customers.

Arkansas Sales Tax Rates by CountyTotal Arkansas Sales Tax RateArkansas State Sales Tax Rate
Arkansas County Sales Tax7.5%6.5%
Ashley County Sales Tax8%6.5%
Baxter County Sales Tax7.75%6.5%
Benton County Sales Tax7.5%6.5%
Boone County Sales Tax7.75%6.5%
Bradley County Sales Tax8.5%6.5%
Calhoun County Sales Tax9%6.5%
Carroll County Sales Tax7%6.5%
Chicot County Sales Tax8.5%6.5%
Clark County Sales Tax8%6.5%
Clay County Sales Tax8%6.5%
Cleburne County Sales Tax8.13%6.5%
Cleveland County Sales Tax9.75%6.5%
Columbia County Sales Tax8%6.5%
Conway County Sales Tax8.25%6.5%
Craighead County Sales Tax7.5%6.5%
Crawford County Sales Tax8.25%6.5%
Crittenden County Sales Tax9.25%6.5%
Cross County Sales Tax9.5%6.5%
Dallas County Sales Tax8.5%6.5%
Desha County Sales Tax8%6.5%
Drew County Sales Tax8.75%6.5%
Faulkner County Sales Tax7%6.5%
Franklin County Sales Tax8.5%6.5%
Fulton County Sales Tax9.5%6.5%
Garland County Sales Tax8%6.5%
Grant County Sales Tax7.75%6.5%
Greene County Sales Tax7.88%6.5%
Hempstead County Sales Tax9.5%6.5%
Hot Spring County Sales Tax8%6.5%
Howard County Sales Tax9.25%6.5%
Independence County Sales Tax8%6.5%
Izard County Sales Tax7%6.5%
Jackson County Sales Tax8.75%6.5%
Jefferson County Sales7.75%6.5%
Johnson County Sales Tax7.5%6.5%
Lafayette County Sales Tax8.75%6.5%
Lawrence County Sales Tax9%6.5%
Lee County Sales Tax7.5%6.5%
Lincoln County Sales Tax8.5%6.5%
Little River County Sales Tax9.38%6.5%
Logan County Sales Tax8.5%6.5%
Lonoke County Sales Tax7.5%6.5%
Madison County Sales Tax8.5%6.5%
Marion County Sales Tax8.25%6.5%
Miller County Sales Tax7.75%6.5%
Mississippi County Sales Tax9%6.5%
Monroe County Sales Tax6.5%6.5%
Montgomery County Sales Tax9.5%6.5%
Nevada County Sales Tax8.5%6.5%
Newton County Sales Tax7.5%6.5%
Ouachita County Sales Tax9%6.5%
Perry County Sales Tax8.75%6.5%
Phillips County Sales Tax8.5%6.5%
Pike County Sales Tax8.5%6.5%
Poinsett County Sales Tax8.25%6.5%
Polk County Sales Tax8.5%6.5%
Pope County Sales Tax7.5%6.5%
Prairie County Sales Tax8%6.5%
Pulaski County Sales Tax7.5%6.5%
Randolph County Sales Tax7.75%6.5%
Saint Francis County Sales Tax9.5%6.5%
Saline County Sales Tax6.88%6.5%
Scott County Sales Tax9.13%6.5%
Searcy County Sales Tax8%6.5%
Sebastian County Sales Tax7.75%6.5%
Sevier County Sales Tax9.63%6.5%
Sharp County Sales Tax8.25%6.5%
Stone County Sales Tax8%6.5%
Union County Sales Tax8.5%6.5%
Van Buren County Sales Tax8.5%6.5%
Washington County Sales Tax8%6.5%
White County Sales Tax8.25%6.5%
Woodruff County Sales Tax8.5%6.5%
Yell County Sales Tax8.38%6.5%

Arkansas Department of Finance and Administration Contact Details

Most communication with the Arkansas Department of Finance and Administration can be conducted through their online services which are available 24/7, or via telephone which is possible between the hours of 8:00 am – 5 pm (Central Daylight Time) Monday through Friday (except US holidays). Here are the main contact methods:

Here is the main address for the Arkansas Department of Finance and Administration:

Arkansas Department of Finance and Administration
1509 W 7th St,
Little Rock, AR 72201
United States
Website: https://www.dfa.arkansas.gov/excise-tax/sales-and-use-tax/
Phone Number: (501)-682-7104 (if calling from outside the U.S., dial 001-501-682-7104)
Email: Sales.tax@dfa.arkansas.gov

If you would like to email the Arkansas Department of Finance and Administration, you must use the specific email above as that is the section which deals with any sales tax queries or concerns. They can also be contacted on Twitter and Facebook.

Join the Conversation: