Arkansas Sales Tax Calculator

State rate, local rates and who sets them

Arkansas charges a 6.50% state sales and use tax, unchanged since July 1, 2013. Cities and counties add their own taxes, which average 2.98%, so the typical combined rate is 9.48% and the highest is 12.63%. Local rates are adopted by individual cities and counties, often after a local vote, and the Department of Finance and Administration (DFA) collects them alongside the state tax.

DFA publishes local rate changes each quarter and offers address-based Local Tax Lookup Tools. Since January 1, 2008, local tax has been based on the point of delivery: if you do not take the goods at the store, the rate is the one for the address they are delivered to. So two buyers in the same store can pay different rates if one takes the item home and the other has it delivered to another city.

Groceries are free of state tax from January 1, 2026

Arkansas has eliminated its state tax on food. DFA's rate schedule shows the reduced state food tax at 0.000% effective January 1, 2026; it had been 0.125%. City and county sales taxes still apply to groceries, so a grocery receipt is not necessarily tax-free. It carries the local rate only.

Example: a $150.00 grocery trip in an area with the average local rate of 2.98% costs $4.47 in tax. Before 2026, the state's 0.125% added another $0.19. Candy, soft drinks and prepared food (food sold heated, mixed by the seller, or sold with utensils provided by the seller) are not "food and food ingredients" for this purpose and are taxed at the full 6.50% state rate plus local tax. The state repeal, made by the Grocery Tax Relief Act of 2025, does not affect county and city grocery taxes.

Vehicles: three tiers for used cars and a local tax cap

Used vehicles get special treatment under Act 1013, effective for sales on or after January 1, 2022:

How the local cap works

The reduced 3.5% rate applies only to the state portion; local tax is not reduced. However, Arkansas still caps local tax on single transactions for motor vehicles licensed for highway use, aircraft, watercraft and manufactured housing. DFA guidance says sellers collect city and county tax on a maximum of $2,500 for these items, while state tax applies to the full price. Since January 1, 2008 the cap no longer applies to anything else. ATVs, off-road motorcycles, travel trailers and boat trailers are taxed in full.

On a $15,000.00 used car, that means $975.00 of state tax plus local tax on only $2,500. At the average local rate of 2.98%, the local part is about $74.50, not $447.00.

The August sales tax holiday

Under Act 757 of 2011, Arkansas holds a sales tax holiday on the first weekend of August each year. In 2026 it ran from 12:01 a.m. Saturday, August 1, to 11:59 p.m. Sunday, August 2. Both state and local tax are waived on qualifying items:

• Clothing and footwear priced under $100 per item
• Clothing accessories and equipment under $50 per item
• School supplies, school art supplies and school instructional materials on DFA's product list
• Electronic devices commonly used by students in a course of study

Holiday pricing rules shoppers trip over

The limit is per item, not per receipt. DFA's example: two $50 shirts and $75 jeans are all tax-free even though the total is $175, while a $125 pair of shoes is fully taxable. "Buy one, get one 50% off" deals cannot be averaged, so a $120 pair of jeans is taxed and the $60 second pair is exempt. Store coupons can bring an item under the limit; manufacturer coupons and rebates cannot. An order qualifies if you order and pay during the holiday and the seller accepts it for immediate shipment, even if it is delivered afterwards. Protective gear and sports equipment such as cleats, helmets and skates are not "clothing" and stay taxable.

Use tax on out-of-state purchases

If you buy something from an out-of-state seller that does not charge Arkansas tax, you owe use tax at 6.50% plus the city and county rate where the item is first delivered. DFA provides the Individual Consumer Use Tax Form (CU-1) in the income tax booklet. If you legally paid sales tax to another state, you can credit it against the Arkansas tax and pay only the difference.

Arkansas compared with neighbouring states

Arkansas has one of the highest average combined rates in the country at 9.48%. In its region only Louisiana (10.13%) and Tennessee (9.61%) are higher on average. Its 6.50% state rate is higher than Missouri's 4.23% and Texas's 6.25%, but below the 7.00% charged by Mississippi and Tennessee.

Common Arkansas sales tax mistakes

• Assuming groceries are now tax-free. Only the state food tax was eliminated; city and county taxes still apply.
• Capping local tax on everything. The $2,500 local cap applies only to highway vehicles, aircraft, watercraft and manufactured housing, not to ATVs, trailers or general goods.
• Applying the reduced 3.5% used-car rate to local tax. It reduces only the state portion.
• Using the store's rate for a delivered item. Tax follows the delivery location.

Step by step: tax on an $8,000 used car

Here is how the rules combine on a $8,000.00 used car bought by someone living in an area with the average local rate of 2.98%.

• State tax: the price is between $4,000 and $9,999, so the reduced 3.5% rate applies: $280.00.
• Local tax: city and county tax applies to only $2,500 of the price: $74.50.
• Total: $354.50, an effective rate of 4.43%.
• For comparison, applying the full average combined rate of 9.48% to the whole price would give $758.40, far more than is actually due.