Arkansas state seal

ArkansasSales Tax

A Complete Guide For Businesses

Automate My ArkansasSales Tax Filings

State Rate
6.5%

Local Tax
yes

Phone
(501) 682-7104

General requirements

Arkansas is a destination-based state (sales are taxed where the buyer is located).

  • Sales tax is charged on the retail sale of tangible personal property (TPP) and certain services
  • For distributors, items purchased for resale aren’t taxed

You can file returns and make payments online at Arkansas Taxpayer Access Point.

Rates

The state general sales tax rate is 6.5% (specialized taxes apply in some cases, such as the 10% mixed drink tax). Additional city and county local taxes apply and range from 1% to 3%. Here's a list of cities and counties with local tax rates.

For a fast and accurate sales tax rate lookup by zip code, use our up-to-date calculator below.

Look up your Arkansas sales tax rate:

How food is taxed

The reduced food tax is 1.5% for grocery-type food items. Prepared food, candy, and soft drinks are taxed at the full rate.

Nexus in Arkansas

Business activities that establish a minimum tax connection to the state include:

  • Maintaining a physical place of business including a warehouse or distribution center
  • Having employees, independent contractors, or representatives working in the state
  • Owning property in the state

Find out more about nexus in Arkansas in their guide for remote sellers.

Filing schedule

Returns are due on the 20th of the month following the end of the tax period.

The prompt payment discount is 2% on the state tax due and 2% on the local tax due, not to exceed $1,000 in a month.

Registering to collect sales tax in Arkansas

A completed application for a sales tax permit and a $50 non-refundable fee is required to register new businesses. It takes approximately eight to ten working days to process the application. You’ll receive the permit in the mail.

You can find the Application for Sales and Use Tax Permit online.

Penalties

10% interest is charged on underpayments or late payments. Penalties are charged as follows:

  • Failure to file: 5% of the tax due for each month that return goes unfiled, not to exceed 35% of the total tax due
  • Failure to pay: 5% of the tax due for each month that it remains unpaid, not to exceed 35% of the total tax due

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