Arkansas Sales Tax

Arkansas Sales Tax Guide (2026)

6.5% at state level, with a local tax cap that sounds generous until you learn most buyers have to claim it back on a form rather than receive it at the till.[1]

5 min read • Reviewed by Tax Advisory Team • Verified • Sources: Arkansas DFA & A.C.A.
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Quick Facts

Sales Tax at a Glance

State base rate
6.5% [1]
Local rate range
0%–6.125% [2]
Little Rock rate
8.625% [2]
State grocery rate
0% since Jan 1, 2026 [3]
Local cap per invoice
$2,500 [4]
Economic nexus
$100k OR 200 sales [5]
Permit fee
$50 [6]
Sourcing
Destination-based [7]
Prewritten software
Taxable [8]
Book a Sales Tax Consultation Talk to a Tax Expert

The $2,500 local cap is a rebate claim, not a register discount

Arkansas caps city and county tax at the first $2,500 of a single invoice, but for most purchases the seller still charges full local tax on the whole amount and the buyer claims the excess back from DFA on Form ET-179A.[4]

Applied at the till only for vehicles, aircraft, watercraft & manufactured homes Everything else goes through Form ET-179A Business & nonprofit buyers only One-year filing deadline City and county caps computed separately Permit holders deduct it on their own return
Individual consumers get nothing. The rebate is open only to businesses, government agencies, schools, churches and nonprofits, so a private buyer pays full local tax on the entire invoice with no route to recovery.[4]
Estimate

Arkansas sales tax calculator

Arkansas · state rate 6.5%
DFA republishes its city and county rate table every quarter.
Rate applied–
Estimated sales tax–
Total with tax–

Estimate only, and it does not apply the $2,500 single-transaction cap on qualifying purchases.[4] Talk to CrownGlobe about rebate claims.

Rates & Registration

Arkansas Sales Tax Rates, Nexus & the state rate schedule

Arkansas state rates by category

General goods & services6.5%
Food & food ingredients0%
Manufacturing utilities0.625%
Electricity for manufacturing1.625%
Parks & tourism levy2%

Local city and county tax applies on top of every line except where a specific exemption removes it, and it still applies in full to food.[3]

Who must register

Either trigger applies: economic nexus at more than $100,000 of aggregate sales or 200 or more separate transactions delivered into Arkansas in the current or previous calendar year, or any physical presence. The transaction test is still in force.[5]

Zeroed does not mean untaxed: Act 1008 of 2025 dropped the state rate on food to 0% from 1 January 2026, but city and county tax on groceries was untouched, so a grocery sale in a 3.25% locality still carries 3.25%.[3]

Compliance

Sales Tax Registration and Filing

An Arkansas sales tax permit costs $50, paid on application.

How to register

  • Confirm nexus→
  • ATAP application→
  • Pay $50 permit fee→
  • Permit issued→
  • File electronically

Remote sellers may register instead through the Streamlined Sales Tax central registration system rather than applying directly to DFA.[6]

Filing & due dates

ReturnApplies toDue
Excise tax return ET-1Permit holders20th of next month
First prepaymentLarger filersMid-month
Second prepaymentLarger filersLate month

Interest runs at 10% a year on tax not paid by the due date, with a failure-to-pay penalty of 5% per month and a further 5% penalty for missing a required electronic payment.[9]

Pricing

Sales Tax & Nexus Pricing

Multi Tax Filing – $50 Per State/Month

ServiceWhat’s Included
Multi-state registrationNexus tracking, permit setup, and state agency coordination.
Monthly filingSales tax returns filed in every registered state.
Exemption & audit supportCertificate handling and notice response.
Get Started with Multi-State Filing
Taxability

Taxable vs. exempt

Arkansas taxes tangible goods and prewritten software broadly, zero-rates groceries at state level only, and leaves custom software and most professional services out of the base.[1]

Generally taxable

  • Tangible retail goodsA.C.A. 26-52-301
  • Prewritten software, incl. electronic deliveryA.C.A. 26-52-304
  • Specified digital productsA.C.A. 26-52-301
  • Candy & soft drinksFull 6.5% state rate
  • Prepared foodA.C.A. 26-52-317
  • Seller-billed delivery chargesPart of sales price

Exempt or zero-rated

  • Food & food ingredients0% state, local applies
  • Prescription drugsA.C.A. 26-52-406
  • Durable medical equipmentA.C.A. 26-52-433
  • Custom computer softwareProgramming service
  • Qualifying farm purchasesFarmer ID card
  • Sales for resaleWith exemption certificate
Worth flagging: candy, soft drinks, dietary supplements and prepared food are statutorily outside the definition of food and food ingredients, so items sitting side by side on the same shelf can carry 0% and 6.5% state rates respectively.[3]
Reference

Glossary of key terms

Gross receipts tax
Arkansas’s statutory name for its sales tax, administered under the GR rules in the state’s tax regulations.
Compensating use tax
Arkansas’s use tax counterpart, charged at the same rate on goods bought outside the state for Arkansas use.
Single transaction
Property or taxable services on one invoice for one local jurisdiction, the unit the $2,500 cap is measured against.
Form ET-179A
The claim form by which a business or nonprofit recovers local tax paid above the $2,500 cap.
ATAP
The Arkansas Taxpayer Access Point, used for registration, filing and rebate claims.
Reduced food tax
The separate state rate category for food and food ingredients, now set at 0%.
FAQ

Sales Tax FAQs

6.5% at state level. City and county taxes add on top and can reach roughly 6% combined in the highest jurisdictions, so total rates commonly run between 8% and 10%.

The state rate on food and food ingredients dropped to 0% on 1 January 2026 under Act 1008 of 2025. City and county tax was not affected and still applies at the full local rate, so groceries are not tax free.

City and county tax applies only to the first $2,500 of a single invoice. For vehicles, aircraft, watercraft and manufactured homes the cap is applied at the point of sale. For everything else the seller charges full local tax and eligible business, government and nonprofit buyers claim the excess back on Form ET-179A within one year.

More than $100,000 in aggregate sales or 200 or more separate transactions delivered into Arkansas in the current or previous calendar year. Arkansas has not repealed its transaction-count test.

Prewritten software is taxable as tangible personal property, including when it is delivered electronically or loaded and left. Custom software written for a specific customer is treated as a nontaxable programming service.

$50, paid electronically when the application is submitted through the Arkansas Taxpayer Access Point. Remote sellers may alternatively register through the Streamlined Sales Tax system.

Verification

Sources & methodology

  1. Arkansas DFA – State Sales & Use Tax Rates
  2. Arkansas DFA – City & County Tax Rates
  3. Arkansas DFA – 2025 Sales Tax Law Changes
  4. Arkansas DFA – Sales & Use Tax FAQs
  5. Arkansas DFA – Remote Sellers
  6. Arkansas DFA – Register for a Tax Account
  7. Arkansas DFA – Streamlined Sales Tax Project
  8. Arkansas Rules – Gross Receipts Tax Rules
  9. Arkansas DFA – Excise Tax Administration
  10. Arkansas DFA – Sales & Use Tax Due Dates
  11. Arkansas DFA – Local Tax Rebate Form ET-179A
  12. Arkansas DFA – Consumer Use Tax
  13. Arkansas Taxpayer Access Point
  14. Arkansas DFA – Sales & Use Tax Home
Methodology: Every rate, cap and deadline is taken from the Arkansas Department of Finance and Administration or the Arkansas Code directly. DFA republishes its city and county rate table each quarter, so local figures are rechecked every three months.
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