The Arkansas sales tax rate is 6.5%, but most transactions are taxed at a higher combined rate once county, city, and special district levies are added. Those local taxes range from 0.5%–5.0%+, depending on where the sale takes place.

Below, we’ll cover how Arkansas’s state and local sales tax rates are structured, how to calculate the combined rate for a specific transaction, and how to assess your business’s obligations in the state.

Highlights

• Arkansas’s 6.5% state sales tax rate is the base. Combined rates across the state can be much higher once local taxes are added.

• The state uses origin sourcing for in-state sellers and destination sourcing for remote sellers. Economic nexus thresholds determine when remote sellers need to collect sales tax.

• Certain goods, such as groceries, are taxed at a reduced state rate, but exemptions are narrow.

What is the Arkansas sales tax rate?

Arkansas’s base state sales tax rate is 6.5%.

The rate applies to most tangible goods and a range of services, including repair and installation labor, unlike many states.

In addition to the base rate, there are two supplemental state taxes that apply in specific situations:

• Tourism tax (2.0%): This applies to certain transactions such as short-term rentals and tourism-related admissions.

• Reduced food rate (0.125%): With some exceptions, food for home consumption is taxed at a reduced 0.125% state rate, though local taxes still apply.

For most retail transactions, 6.5% is your starting point. The final rate depends on local taxes where the transaction is sourced.

How does Arkansas’s sales tax rate work?

Arkansas uses a split-sourcing rule, which determines whether you charge tax based on your location or your customer’s location.

Here’s how it works:

In-state sellers

Sellers with a physical presence in Arkansas charge the combined rate determined by their business location. For example, a store in Fort Smith would charge Fort Smith’s rate on all Arkansas sales, no matter where the customer lives.

Remote sellers

Sellers with no physical presence in Arkansas charge based on where the customer receives the goods. Exceeding $100,000 in sales or 200 transactions in Arkansas will prompt sales tax nexus. Once either threshold is crossed, a remote business must register, collect, and remit Arkansas sales tax.

Here are a few other details worth knowing:

• SSUTA membership: Arkansas participates in the Streamlined Sales and Use Tax Agreement (SSUTA), which standardizes definitions and exemption certificate processes across states.

• Use tax: If sales tax isn’t collected on a taxable purchase (often from out-of-state sellers), the buyer owes use tax at the same rate. Businesses are responsible for self-reporting these amounts.

How do you calculate Arkansas sales tax?

The formula for calculating Arkansas sales tax is straightforward. You need to multiply the sale amount by the total combined rate for the transaction location. For example, a $150 sale in Fayetteville, where the combined rate is 9.75%, uses this calculation: $150 × 0.0975 = $14.63 in sales tax.

The challenge is determining which rate to apply. Arkansas has hundreds of local jurisdictions, and rates change regularly due to new city levies, county adjustments, and special districts. Stripe’s sales tax calculator lets you search combined rates by location without manually tracking each component. It’s a practical tool for spot-checking rates or estimating liability on specific transactions. But at high volume, manual calculation is nearly impossible. Stripe Tax pulls current rates and applies them to transactions in real time, which removes the rate-lookup problem entirely and generates the reports you need when it’s time to file.

What are the local sales tax rates in Arkansas?

Local sales taxes in Arkansas come from three sources: counties, cities, and special improvement or transit districts. Because all three are added to the 6.5% state rate, combined rates in some parts of the state exceed 11%, and a single transaction can sometimes include four separate tax components.

2026 Arkansas sales tax range

Some businesses operating in multiple locations must manage different rates at each point of sale.

What are Arkansas’s sales tax rates by city?

It’s important to consider a city’s sales tax rates, which affect the overall combined rate. The figures below reflect the minimum combined rates, although rates within cities might be higher.

Little Rock’s rate is notably lower compared to cities such as Springdale and Fayetteville, which can have sales tax rates as high as 10%. Always verify current rates with the Arkansas Department of Finance and Administration before filing, because city and district rates change throughout the year.

What are Arkansas’s sales tax rates by county?

County rates in Arkansas range from 1%–3%, though most counties sit at or near 2%. The combined minimum rates below reflect the state rate, plus the county rate only. Actual rates in cities are usually higher.

Even counties with lower rates or no county sales tax, such as Faulkner County and Saline County, can have much higher combined rates once city and district taxes are added.

Does Arkansas’s sales tax rate apply to your business?

Whether your business has nexus in Arkansas and an obligation to collect and remit sales tax depends on your physical and economic footprint in the state. If you’re already selling into Arkansas at any volume, it’s worth assessing your situation.

Physical nexus is established by:

• Having offices, warehouses, or inventory in Arkansas, including third-party fulfillment.

• Employees, contractors, or sales representatives regularly working in the state.

• Regular in-person activity in Arkansas, such as trade shows.

If you’ve established physical or economic nexus (e.g., $100,000 in sales in Arkansas or 200 separate transactions into the state), you’ll need to register.

Once registered, remember the following:

• Most goods are taxed at the full rate.

• Groceries are taxed at a reduced 0.125% state rate.

• Prepared food, candy, and soft drinks are taxed at the full rate.

• Certain items (e.g., manufacturing equipment, agricultural inputs, prescription drugs) might be exempt from sales tax.

Stripe Tax automatically handles rate calculation and collection across jurisdictions, including Arkansas’s layered local rates. It applies the correct combined rate at the transaction level and generates filing reports as needed.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. In addition, it automatically calculates and collects sales tax, VAT, and GST on both physical and digital goods and services—in all US states and in more than 100 countries.

Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful API.

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration, or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: Let Stripe manage your global tax registrations and benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

• Simplify filing: Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.

Learn more about Stripe Tax, or get started today.