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Arkansas Sales Tax

On this page you will find handy sales and use tax information about Arkansas.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Arkansas that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Sales Tax Rates
State Rate

6.500%
Range of Local Rates

0% – 10.5% A cap on the local sales/use tax applies on sales of any item of tangible personal property. Some local jurisdictions do not impose a sales tax.
Local Rates Apply to Use Tax

Yes
Remote Seller Nexus Rules
CLICK-THROUGH NEXUS

10/27/2011 – repealed effective 6/30/2019
AFFILIATE NEXUS

10/27/2011 – repealed effective 6/30/2019
ECONOMIC NEXUS

7/1/2019
MARKETPLACE NEXUS

7/1/2019
Sales Tax Holidays
Annual Sales Tax Holiday

August 1, 2026 - August 2, 2026

  1.  Electronic Devices
  2. School Supplies
  3. School Art Supplies
  4. School Instructional Materials
  5. Clothing

For more information, click here.
Administration Information
Streamlined Sales Tax Status

Full Member
NUMBER OF TAXING AUTHORITIES

392 Sales Tax Jurisdictions

HOME RULE AUTHORITIES

N/A
Sales Tax Sourcing (Intrastate)

Destination
Sales Tax Return Due Date

The 20th of the month following the reporting period
Exemption Information
RESALE CERTIFICATE

Arkansas Resale Certificate
TYPES OF EXEMPTIONS

Product types of exemptions: manufacturing equipment and machinery, pollution control machinery and equipment, sewer services, dental appliances, electricity used in manufacturing, agricultural and livestock, timber harvesting equipment, farm equipment and machinery, newspapers

 

Entity types of Exemption: sales by churches, sales to the U.S. government only

 

Arkansas Exemption Certificate Forms
History & Fun Facts
HISTORY

Arkansas enacted its state sales or gross receipts tax in 1937 and it was later codified in 1941. In 1949, the state enacted the compensating use tax.

 

Arkansas amended its sales and use tax laws in 2003 to conform with the Streamlined Sales and Use Tax Agreement.
FUN FACTS
  • In Arkansas, sales of new motor vehicles to blind U.S. Armed Services veterans are exempt from state sales and use tax.
  • In Arkansas you can be taxed for body modifications such as tattoos, electrolysis, and piercings They are all considered taxable services.

Arkansas Reduces Tax on Utilities Used in Manufacturing

Arkansas has implemented an emergency rule which reduces the sales and use tax rate on natural gas and electricity. Effective July 1, 2007, the tax rate for utilities used directly in the actual manufacturing process is reduced from 6% to…

Arkansas Amended Statute Provides Resale Exemption for Services

On March 19, 2007, Arkansas Governor, Mike Beebe, signed H.B. 1622, which amends and provides that a person performing taxable labor to for another person who holds a retailer’s permit is not required to collect and remit Arkansas sales tax…

Arkansas Governor Repeals Motor Vehicle Lease Provision

On March 28, 2007, Arkansas Governor, Mike Beebe, signed H.B.2226 – repealing conflicting language in Arkansas law pertaining to sales tax on leases or rentals of motor vehicles. The repealed provision stated that any person engaged in the business of…

Arkansas SST Legislation Becomes Law

Arkansas Governor Riley signed the state’s SST conformity legislation, which will become effective January 1, 2008. Additionally, in response to the Agreement’s ban on states imposing tax caps, Arkansas will enact a rebate or credit for local taxes paid in…

SST Board Repeals MPU

In December 2006, the Governing Board voted to repeal the controversial multiple points of use (MPU) provisions previously included with the SST Agreement and, instead, adopt sourcing rules for software transactions. Prior to the repeal, a business purchaser was required…

Arkansas’ Enactment of Bills Brings State into SST Conformity.

In order to bring the state into SSTP conformity by January 1, 2008, Arkansas Governor Mike Beebe signed four bills into law: a credit or rebate of overpayment of local taxes on the first $2,500 of a qualifying single transaction;…

Arkansas Governor Reduces Grocery Tax

On February 15, 2007, Arkansas Governor Mike Beebe signed into law Senate Bill 185 which reduces the state sales and use tax rate on food and food ingredients from 6% to 3%, effective July 1, 2007. The 3% state rate…

Arkansas Regulation Addresses Labor

The State of Arkansas has added a new regulation that clarifies the treatment of labor charges that stem from equipment used in manufacturing. According to the new regulation, the service of installing, altering, adding to or replacing machinery is exempt…

SST Board Resolves Bundling Issues

After six years of negotiations, the Streamlined Sales Tax (SST) Governing Board has adopted a compromise rule despite concerns regarding the complexity of the definition and interpretation. Several states had originally objected to the inclusion of rules that allowed a…

Recent SST Meeting Generated Two Significant Results: Origin Sourcing Defeated; CSP Contract Approved

During the SST Governing Board meeting, both sourcing amendments proposed by Texas and Ohio were defeated. The proposals aimed to give states the option of local sourcing in contrast to the current destination sourcing of SSTP states. The Ohio amendment…

Streamlined Sales Tax – September 30 Amnesty Deadline Passes

Taxpayers who register to file sales/use tax returns under the Streamlined Sales Tax Project are granted full amnesty which includes forgiveness of all open sales and seller’s use tax, interest, and penalties for prior period sales/use tax liabilities by member…

Arkansas implements tax on certain services.

As of July 1, 2004 Arkansas is imposing gross receipts tax on the following services: 1) wrecker and towing; 2) collection and disposal of solid wastes; 3) cleaning parking lots and gutters; 4) dry cleaning and laundry services; 5) industrial…

Arkansas amnesty program enacted.

Arkansas Act 70 (House Bill 1100) enacts a state amnesty for voluntary payment of state taxes beginning July 1, 2004 through December 31, 2004. To be eligible for complete amnesty, a taxpayer must apply and submit all applicable forms between…

The State of Arkansas makes major legislative changes.

The Arkansas legislature has made several substantial changes to the state tax laws, some of which go into effect on March 1st. The first of these changes is the increase of the Arkansas Sales and Use Tax rate. Effective March…

Arkansas auto insurance settlement.

All applicable taxes must be included by the insurer to the insured, or to the person with claim against the insured, in the settlement of a claim for damages to an automobile as a total loss. These taxes include sales…

Arkansas rate increase proposed.

In the Governor’s State of the State Address on January 14, 2003, he included a proposal for an increase in sales and use tax from 5.125% to 5.75%. In response to the $474 million in revenue required to avoid budget…