This blog was last updated on January 8, 2026
Arkansas imposes a statewide sales and use tax rate of 6.5%, as established under the Arkansas tax code. While Arkansas does not allow local jurisdictions to levy their own independent sales tax structures, cities and counties may impose additional local sales taxes that apply on top of the Arkansas state tax rate.
As a result, the total Arkansas state tax burden can vary depending on where a transaction occurs. Businesses selling taxable goods or services in Arkansas, whether in-state or remotely, must understand and comply with AR sales tax law, including registration, collection, filing and remittance requirements.
What’s Taxable in Arkansas?
Under Arkansas sales tax law, sales and use tax generally applies to tangible personal property and certain enumerated services. Sellers offering taxable products or services are required to collect and remit Arkansas sales tax or Arkansas use tax, depending on the nature of the transaction.
Common taxable items and services in Arkansas include:
- Clothing
- Prewritten computer software delivered in tangible format
- Over-the-counter drugs without a prescription
- Telecommunication services
- Medical equipment
- Computer software maintenance contracts
Sales Tax Nexus in Arkansas
A seller is liable to collect and remit Arkansas sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
AR: Physical Nexus
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Arkansas.
AR: Economic Nexus
Arkansas enforces economic nexus for remote sellers and marketplace facilitators. A business may be required to register and collect Arkansas sales tax if, during the previous calendar year, it had:
- Over $100,000 in sales, or
- More than 200 separate transactions made within Arkansas.
More details are available on the Arkansas Department of Finance & Administration Retail Sellers Page.
Arkansas Sales Tax Exemptions
Certain transactions are exempt from Arkansas sales and use tax under the Arkansas tax code. General exemptions tyipically include:
- Most services, unless specifically taxable under statute.
- Prescription drugs
- Agricultural items
- Newspapers
Entity or Use Based Exemptions
Arkansas also exempts sales to certain entities from the sales/use tax, including the following:
- Nonprofit hospitals and sanitariums
- Retailers selling for resale
- Industrial processors
- Churches and charitable organizations
- Schools
- Government
How to Claim Sales Tax Exemption in Arkansas
To claim an exemption, an entity must provide an exemption certificate with the sale. The Treasury accepts SST Certificate of Exemption – FOOO3 or Exemption Certificate FORM ST-391 as the most commonly used forms.
Additional guidance on acceptable exemption formats can be found in Sales and Use tax Forms (General section).
Arkansas Filing and Remittance Requirements
Arkansas does offer multiple methods for filing and remitting sales and use tax:
- Electronic filing through Arkansas Taxpayer Access Point (TAP)
- Simplified Electronic Return (SER) for SST participants and their affiliates
- Paper filing, including the Consumer’s Use Tax Report (Form CU1)
Businesses with average net sales of $200,000 or more per month must make required sales tax prepayments. Act 1142 also requires certain out-of-state sellers with high taxable sales volume to submit prepayments equal to 80% of their monthly state liability. Under Ark. Code Ann. §26-52-512, these prepayments must be made via electronic funds transfer (EFT).
Frequently Asked Questions
Is Arkansas a part of the Streamlined Sales Tax (SST) initiative?
Yes, Arkansas is part of the Streamlined Sales Tax (SST) initiative, a multi-state agreement designed to simplify and standardize sales tax rules. More information concerning SST may be found here.
Does Arkansas have sales tax holidays?
Yes. Arkansas offers an annual back-to-school sales tax holiday, during which qualifying school supplies, clothing, and accessories may be purchased tax-free.
Are there any special point of sale fees in Arkansas?
Yes, Arkansas imposes certain point-of-sale fees on specific products, including E911 and tire removal fees, which are collected from the final consumer at retail.
Does Arkansas apply sales tax to shipping charges?
In most cases, Arkansas considers shipping, freight, and transportation charges to be part of the taxable sales price when the underlying product is taxable.
What is the current sales tax rate in Arkansas?
The current sales tax rate in Arkansas is 6.5%.
For sourcing sales tax, is Arkansas origin or destination based?
Arkansas is destination based for sales tax sourcing.
Can I use the Simplified Electronic Return (SER) in Arkansas if I’m not in the SST Model 1 program?
Yes. Arkansas accepts SER filings from any seller or tax provider capable of transmitting the return properly. Sellers do not need to participate in the SST Model 1 program to use SER—providers like Sovos can file on a seller’s behalf.
How to Register for a Arkansas Sales Tax License?
Arkansas businesses or individuals selling tangible personal property or certain services to Arkansas consumers may need register to collect sales tax when meeting qualifying requirements. More information may be found here: Register for a Tax Account
Additional Resources
For more information on U.S. sales tax compliance across all 50 states, check out our:
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