Arkansas has a high combined sales tax averaging 9.44% — among the top five highest in the US. The state has progressively reduced its grocery tax (now just 0.125% state rate), but local jurisdictions still apply their full rates to groceries. Fayetteville's 9.75% combined rate reflects booming growth in northwest Arkansas.
Arkansas sales tax overview
| Component | 2026 Rate |
|---|---|
| State sales tax | 6.50% |
| Avg local add-on | 2.94% |
| Avg combined | 9.44% |
| Maximum combined | 11.63% |
Note: Arkansas reduced state grocery tax to 0.125% in 2023. Local groceries still taxed at full local rate.
Arkansas sales tax by city
Combined state + local sales tax rates for major cities in Arkansas:
| City | Combined Rate |
|---|---|
| Little Rock | 9.00% |
| Fort Smith | 9.25% |
| Fayetteville | 9.75% |
What's exempt in Arkansas
Groceries
Reduced state rate: 0.100% (vs. 6.50% general). Local rates may still apply.
Clothing & footwear
Taxed at standard rate.
Prescription drugs
Exempt from sales tax (typical across most states).
Arkansas sales tax holidays
During a sales tax holiday, qualifying items are exempt from Arkansas sales tax. Some local jurisdictions may opt out — check with retailers near you.
Back-to-School
1st weekend of August
Clothing ≤$100, school supplies (no limit), electronics ≤$1000
How Arkansas sales tax is calculated
Sales tax in Arkansas is calculated by multiplying the pre-tax purchase price by the applicable combined rate. The formula is simple:
Sales Tax = Purchase Price × 9.44% (avg combined)
Total = Purchase Price + Sales Tax
The exact rate depends on where the purchase occurs — the state base rate (6.50%) plus any local city or county add-ons. Arkansas allows local jurisdictions to add their own taxes, so the rate varies by location.
Quick calculation examples at average rate 9.44%:
$100 item
$9.44 tax
$109.44 total
$250 item
$23.60 tax
$273.60 total
$500 item
$47.20 tax
$547.20 total
$1,000 item
$94.40 tax
$1094.40 total
Additional tax-free items in Arkansas
Beyond the standard exemptions, Arkansas also provides sales tax relief on these categories:
Exemptions may have conditions. Always verify with the Arkansas Department of Revenue for complete rules.
Arkansas sales tax in context: rates, history, and neighbors
Arkansas's 6.5% state sales tax is among the higher base rates in the South, and combined with aggressive county and city taxes the average combined rate of 9.44% ranks 4th-highest nationally. Fayetteville (9.75%), Hot Springs (9.5%), and Fort Smith (9.25%) are typical NWA/major-city combined rates. Arkansas dramatically reduced its grocery tax — from 6.5% to 2% in 2007, then to 1.5% in 2011, and finally to 0.125% in 2023 (HB 1497). Local groceries still taxed at full local rate, so combined grocery tax in Little Rock is about 3-4%. Compared to neighbors: Tennessee (9.55%), Mississippi (7.07%), Louisiana (10.01%), Missouri (8.42%), and Texas (8.20%) — Arkansas's combined rate sits in the higher range. Arkansas joined the Streamlined Sales Tax Agreement in 2008, simplifying multi-state compliance for businesses.
Online shopping & Arkansas sales tax
Arkansas enforces economic nexus — out-of-state online sellers with $100,000 or more in Arkansas sales must collect and remit sales tax. Arkansas is a member of the Streamlined Sales Tax (SST) Agreement, which simplifies multi-state tax compliance for online retailers.
Use Tax reminder: If you purchase taxable goods online from a seller who does NOT collect Arkansas sales tax, you technically owe Use Tax — the same rate as sales tax, reportable on your Arkansas state tax return. Use Tax enforcement on consumers is rare but the obligation exists for significant purchases.
How much Arkansas sales tax on common purchases?
Using Arkansas's average combined rate of 9.44%:
| Purchase | Price | Sales Tax | Total |
|---|---|---|---|
| Grocery cart | $150 | $4.56 | $154.56 |
| Clothing / shoes | $120 | $11.33 | $131.33 |
| Prescription drug | $80 | Exempt | $80.00 |
| Smartphone | $999 | $94.31 | $1093.31 |
| Laptop / tablet | $1,299 | $122.63 | $1421.63 |
| New car ($35,000) | $35,000 | $3304.00 | $38304.00 |
| Home appliance | $1,500 | $141.60 | $1641.60 |
| Restaurant meal | $60 | $5.66 | $65.66 |
Based on Arkansas's average combined rate of 9.44%. Exact tax depends on city/county. Use our calculator above for specific locations and amounts.
Collecting sales tax in Arkansas: business guide
If you sell goods or taxable services to Arkansas customers, here's what you need to know:
- Registration: Register for a Arkansas sales tax permit/license through the Arkansas Department of Revenue before making your first taxable sale. Most states process registrations online within a few days.
- Economic nexus (online sellers): If you have $100,000+ in Arkansas annual sales or 200+ transactions, you must collect Arkansas sales tax even without a physical presence in the state — per South Dakota v. Wayfair (2018). You must collect both state (6.50%) and applicable local rates.
- Destination vs origin sourcing: Arkansas uses destination-based sourcing for most sales — the tax rate where the buyer receives the goods applies. Always use the customer's delivery address to determine the rate.
- Filing frequency: Frequency depends on your Arkansas sales volume — monthly for high-volume sellers, quarterly or annually for low-volume sellers. Check with the Arkansas Department of Revenue for your specific filing schedule.
- Marketplace sales: If you sell through Amazon, Etsy, eBay, or similar platforms, the marketplace is required to collect and remit Arkansas sales tax on your behalf — you don't need to collect it separately on marketplace transactions.
- Resale certificates: Businesses purchasing goods for resale can provide a Arkansas resale certificate to suppliers to avoid paying sales tax on wholesale purchases. Keep copies of all resale certificates for audits.
Streamlined Sales Tax (SST): Arkansas is a full member of the Streamlined Sales Tax (SST) Agreement, which simplifies multi-state sales tax registration and compliance through a single registration portal (streamlinedsalestax.org).
Arkansas-specific business compliance details
Arkansas businesses register through the Arkansas Department of Finance and Administration (DFA) at atap.arkansas.gov for an Arkansas Sales and Use Tax permit. Filing is monthly for businesses with $1,000+/month in tax, quarterly for $200-1,000, and annually for under $200. Out-of-state sellers with $100,000+ in Arkansas sales (or 200+ transactions) must register for economic nexus collection. Arkansas is a Streamlined Sales Tax (SST) Agreement member — businesses can use the central registration through streamlinedsalestax.org for simplified multi-state compliance. Marketplace facilitators (Amazon, Etsy, eBay) collect Arkansas tax on third-party sales. Arkansas uses destination-based sourcing — buyer's address determines the rate. Penalties: 5% of unpaid tax per month, capped at 35%.
Arkansas sales tax frequently asked questions
How much sales tax is on groceries in Arkansas?
Arkansas now taxes groceries at a reduced state rate of 0.125% (just one-eighth of a percent at the state level). However, county and city taxes still apply to groceries at their full rate — typically 1.5%–4.5%. In Little Rock, groceries face approximately 2%–3% total tax (0.125% state + local portion), significantly less than general merchandise at 9%.
What is the back-to-school tax holiday in Arkansas?
Arkansas's Back-to-School Sales Tax Holiday occurs the first Saturday and Sunday of August. Exempt items include: clothing and footwear ≤$100 per item, school supplies (no dollar limit), and electronics ≤$1,000 per item. The exemption applies to state sales tax; most but not all local jurisdictions also participate.
What is the sales tax rate in Fayetteville, AR vs Little Rock?
Fayetteville's combined rate is 9.75%, compared to Little Rock at 9%. The difference comes from additional local sales taxes approved by voters in Fayetteville to fund transit, parks, and infrastructure. Northwest Arkansas (Fayetteville/Rogers/Bentonville area) has grown rapidly due to Walmart's HQ presence, driving additional local tax revenue needs.