Arkansas Sales Tax Rate & Rules (2026)

Last updated: 2026-03-27

What is the sales tax rate in Arkansas?

What is taxable in Arkansas?

How do you register to collect sales tax in Arkansas?

What is the economic nexus threshold for Arkansas?

How to register for sales tax in Arkansas

Before you can collect sales tax, you need to register with the Arkansas Department of Finance and Administration. Here is the step-by-step process.

1. Register online through the Arkansas Taxpayer Access Point (ATAP) at atap.arkansas.gov
2. Provide your FEIN or SSN, business entity type, and location information
3. There is no fee for an Arkansas Sales & Use Tax Permit
4. Arkansas is a member of the Streamlined Sales Tax (SST) program — you can also register through the SST Registration System at sstregister.org
5. Permits are typically issued within 5-7 business days of application

How to collect sales tax in Arkansas

Once registered, you are responsible for charging the correct amount of sales tax on every taxable transaction. Here is how the collection process works in Arkansas.

1. Determine taxability of each product or service — Arkansas taxes most tangible goods and some services
2. Calculate the correct combined rate (state + county + city) based on the delivery destination — Arkansas is a destination-based state
3. Charge sales tax at the point of sale and separately itemize it on receipts and invoices
4. Accept Arkansas resale certificates (Form ST391) from buyers purchasing goods for resale
5. Maintain detailed records of all sales, tax collected, and exemption certificates for at least 3 years

How to file and remit sales tax in Arkansas

Filing your sales tax return on time is critical to avoid penalties. Arkansas requires electronic filing for most businesses.

1. Log in to the Arkansas Taxpayer Access Point (ATAP) to file your return
2. Filing frequency is assigned based on tax liability — monthly (over $100/month average), quarterly ($25-$100), or annually (under $25)
3. Report gross sales, deductions, exempt sales, and net taxable sales
4. Remit payment electronically by the 20th of the month following the reporting period
5. Timely filers may qualify for a vendor discount (2% of the first $1,000 collected)
6. Keep all returns and supporting documentation for at least 3 years

What is exempt from Arkansas sales tax?

Not everything is subject to sales tax. Arkansas provides exemptions for certain products, buyers, and uses. Always verify the specific exemption requirements with the Arkansas Department of Finance and Administration.

• •Sales for resale with a valid Arkansas resale certificate (Form ST391)
• •Prescription drugs and certain medical devices
• •Sales to the federal and state governments
• •Manufacturing machinery and equipment (partial exemption)
• •Agricultural inputs including feed, seed, and fertilizer
• •Sales to qualified nonprofits with an exemption letter
• •Motor fuels subject to the separate motor fuel tax

What are the highest combined sales tax rates in Arkansas?

Because Arkansas allows local jurisdictions to add their own sales taxes on top of the state rate, combined rates vary by location. Here are some of the highest combined rates in major Arkansas cities.

What is use tax in Arkansas?

Arkansas use tax applies when you buy taxable goods from out-of-state sellers who do not collect Arkansas sales tax. The use tax rate is the same as the sales tax rate for your location. Businesses must report and pay use tax on their regular sales tax return. This commonly applies to online purchases, catalog orders, and supplies bought from out-of-state vendors.

Does Arkansas have marketplace facilitator rules?

Arkansas requires marketplace facilitators to collect and remit sales tax on behalf of third-party sellers for sales delivered into Arkansas. This applies to platforms like Amazon, eBay, Etsy, and similar marketplaces. If all of your sales go through a marketplace facilitator, the platform handles the tax obligation for those transactions. You remain responsible for any direct sales.

What are the penalties for sales tax non-compliance in Arkansas?

Arkansas imposes a penalty of 5% per month on unpaid tax (up to 35%). Interest accrues at 10% per year on outstanding balances. Failure to file returns can result in the state estimating your liability and revoking your sales tax permit. Fraudulent failure to remit collected sales tax is a felony in Arkansas, with penalties including fines and imprisonment.

This is general information, not legal or tax advice. Tax rules change frequently — always verify with the official state agency. Sources: Arkansas Department of Finance and Administration.