Arkansas Sales Tax Guide 2025: A Step-by-Step Guide for Businesses

Arkansas Sales Tax: 2025 Overview

Sales tax in Arkansas is a 6.5% statewide rate in 2025, with additional local taxes ranging from 0.25% to 5.125%, creating combined rates as high as 11.625%. As of 2025, Arkansas participates in the Streamlined Sales Tax initiative (SSUTA), simplifying compliance for remote sellers.

Known for its complex local tax structures, Arkansas continues to be a state where accurate tax calculations are critical for businesses.

Arkansas Sales Tax Due Date

In Arkansas, the due dates for paying sales taxes depend on your assigned filing frequency, which is determined by your total taxable sales.

Filing Frequency	Criteria	Due Date
Monthly	For businesses collecting more than $200 in sales tax per month.	Due on the 20th of the following month.
Quarterly	For businesses collecting $25–$200 in sales tax per month.	Due on the 20th of the month following the quarter (e.g., April 20 for Q1).
Annually	For businesses collecting less than $25 in sales tax per month.	Due on January 20 of the following year.

Key Notes

• If the due date falls on a weekend or holiday, the payment is typically due on the next business day.
• Late filings or payments may result in penalties and interest, so timely submissions are crucial.
• Payments and filings can be completed through the Arkansas Taxpayer Access Point (ATAP).

Arkansas Sales Tax Rate in 2025

Arkansas imposes a 6.5% state sales tax, with local rates varying from 0.25% to 5.125%, creating combined rates up to 11.625% in some areas. The total sales tax rate depends on the combination of state, county, and city taxes.

Tax Type	Rate	Description
State Sales Tax	6.5%	Applies to most retail sales of tangible personal property, taxable services, and digital goods.
Local Sales Tax	Varies by Location	Additional sales tax imposed by cities and counties, ranging from 0.25% to 5.125%.
Reduced Rate for Groceries	0.125%	Applies to eligible food and food ingredients, excluding prepared food, candy, and soft drinks.

2025 Arkansas Local Sales Tax Rates Table

Below is a table highlighting the 20 largest cities in Arkansas, list along with their respective local and combined sales tax rates:

City	Local Sales Tax Rate	Total Sales Tax Rate
Benton	2.5%	9.0%
Bentonville	2.0%	8.5%
Bryant	3.0%	9.5%
Cabot	2.0%	8.5%
Conway	1.75%	8.25%
Fayetteville	2.0%	8.5%
Fort Smith	2.0%	8.5%
Hot Springs	1.5%	8.0%
Jacksonville	2.0%	8.5%
Jonesboro	2.5%	9.0%
Little Rock	1.5%	8.0%
North Little Rock	1.0%	7.5%
Pine Bluff	1.5%	8.0%
Rogers	2.0%	8.5%
Russellville	1.5%	8.0%
Sherwood	1.0%	7.5%
Springdale	2.0%	8.5%
Texarkana	2.0%	8.5%
West Memphis	1.0%	7.5%
Searcy	1.0%	7.5%

Notes

• Sales tax rates can vary significantly by city and county.
• The total sales tax rate is the sum of the state rate (6.5%) and the local rate.
• Rates are subject to change, so it’s important to verify with the Arkansas Department of Finance and Administration.

Arkansas Sales Tax Calculator Example with Customers in Multiple Locations

An online retailer based in New York establishes economic nexus in Arkansas by exceeding $100,000 in annual sales, requiring them to collect and remit sales tax for purchases made by Arkansas residents. The retailer makes sales to customers in multiple cities, each with different local tax rates.

Detail	Description
Business	Online retailer based in New York with economic nexus in Arkansas.
Customer Purchases	Customer A in Little Rock $1,200 total, $800 taxable, $400 exempt (e.g., groceries or medications). Customer B in Fayetteville $900 total, $600 taxable, $300 exempt. Customer C in Jonesboro $500 total, $400 taxable, $100 exempt.
Customer Locations	Little Rock 1.5% local tax + 6.5% state tax. Fayetteville 2.0% local tax + 6.5% state tax. Jonesboro 2.5% local tax + 6.5% state tax.

Arkansas Sales Tax Calculations

Customer	Taxable Amount	State Tax (6.5%)	Local Tax	Total Sales Tax Due
Customer A	$800	$800 × 6.5% = $52.00	$800 × 1.5% = $12.00	$52.00 + $12.00 = $64.00
Customer B	$600	$600 × 6.5% = $39.00	$600 × 2.0% = $12.00	$39.00 + $12.00 = $51.00
Customer C	$400	$400 × 6.5% = $26.00	$400 × 2.5% = $10.00	$26.00 + $10.00 = $36.00

Total Sales Tax Due in Arkansas

$64.00 (Customer A) + $51.00 (Customer B) + $36.00 (Customer C) = $151.00

Key Considerations for Businesses

• Location Accuracy: Verify customer addresses to determine local tax rates. For example, Little Rock, Fayetteville, and Jonesboro have different local taxes.
• Exemption Management: Correctly classify exempt items like groceries or medications and maintain exemption documentation.
• Tax Reporting: Track sales and tax collected by city to file accurate returns with the Arkansas Department of Finance and Administration.

Is there an Arkansas SaaS sales tax?

Yes, Arkansas imposes sales tax on certain Software as a Service (SaaS) products, as SaaS is generally treated as taxable tangible personal property when accessed electronically.

Category	Details	Examples
Taxable SaaS	SaaS products that provide access to prewritten software delivered electronically are subject to Arkansas’s 6.5% state sales tax, plus any applicable local taxes.	Cloud-based accounting software, CRM tools.
Non-Taxable SaaS	Custom software services or consulting where software is incidental to the service may not be taxable.	Custom-built software solutions.
Requirements for Businesses	SaaS providers with nexus in Arkansas must collect and remit sales tax for taxable transactions.	Out-of-state providers meeting nexus thresholds.

Additional Considerations

• Taxability depends on whether the SaaS product is classified as prewritten or customized.
• Businesses can streamline compliance by getting started with Kintsugi for sales tax automation, ensuring accurate tax calculations and filings.
• For further guidance, consult the Arkansas Department of Finance and Administration (DFA) or a tax professional.

Is there sales tax on clothing in Arkansas?

Yes, Arkansas imposes sales tax on clothing, but with specific exemptions:

Category	Details
Taxable Clothing	Most clothing and footwear items are subject to Arkansas's state sales tax of 6.5%, plus any applicable local sales taxes.
Exemptions	Clothing items priced at less than $4 are exempt. Certain accessories and protective equipment (e.g., helmets, gloves) may also be exempt during tax-free weekends.
Annual Sales Tax Holiday	Typically held in early August. Clothing, school supplies, and certain accessories are tax-exempt during this period.

FAQs

What is the sales tax rate in Arkansas?

The sales tax rate in Arkansas is 6.5% statewide, with additional local taxes ranging from 0.25% to 5.125%, resulting in a combined rate of up to 11.625% depending on the location.

How do you calculate Arkansas sales tax?

To calculate Arkansas sales tax, multiply the taxable amount by the 6.5% statewide rate, then add any applicable local taxes, which range from 0.25% to 5.125%, based on the customer’s location. Ensure exemptions are applied accurately.

Sales Tax Nexus in Arkansas

Sales tax nexus in Arkansas establishes a business's obligation to collect and remit sales tax, triggered by physical presence, economic activity, or relationships with in-state entities.

Type of Nexus	Description	Threshold/Criteria
Physical Nexus	Created by having a physical presence in Arkansas, such as a location, employees, or inventory.	Office, warehouse, storefront, or employees operating in Arkansas.
Economic Nexus	Triggered by making substantial sales into Arkansas, even without a physical presence.	More than $100,000 in gross sales or 200 separate transactions in the current or previous year.
Affiliate Nexus	Created through relationships with in-state businesses that help facilitate sales.	An Arkansas-based affiliate promotes or sells products for the out-of-state retailer.
Marketplace Nexus	Applies to sales made through marketplace facilitators operating in Arkansas.	Facilitators must collect and remit sales tax on behalf of sellers.
Inventory Nexus	Triggered by storing inventory in Arkansas, even if through a third party (e.g., warehouses).	Any physical inventory located in Arkansas.
Employee or Agent Nexus	Having employees, independent contractors, or agents perform services in Arkansas.	Sales or service activities conducted by representatives in Arkansas.

Notes

• Arkansas uses both physical presence and economic presence to determine nexus, in accordance with state legislation.
• Businesses with nexus in Arkansas must register for a sales tax permit and collect sales tax on taxable sales.
• Marketplace facilitators are responsible for collecting and remitting sales tax for third-party sales made through their platforms.

FAQs

What is the sales tax nexus in Arkansas?

Sales tax nexus in Arkansas is established through a physical presence (e.g., office or employees) or economic nexus, triggered by exceeding $100,000 in annual sales or 200 transactions within the state, requiring businesses to collect and remit sales tax.

Arkansas Sales Tax Exemptions in 2025

In 2025, Arkansas maintains its 6.5% state sales tax, with exemptions for groceries, prescription medications, agricultural supplies, and manufacturing equipment.

What is an Arkansas state tax-exempt certificate?

An Arkansas state tax-exempt certificate, also known as Form ST391, is a document that allows eligible buyers to make tax-exempt purchases in Arkansas. It certifies that the buyer qualifies for an exemption under Arkansas sales tax law.

• Purpose: Used for transactions exempt from sales tax, such as purchases by government agencies, nonprofit organizations, or for resale purposes.
• Usage: The buyer provides the certificate to the seller at the time of purchase to avoid paying sales tax.
• Retention: Sellers must keep a copy of the certificate on file to validate tax-exempt transactions in case of an audit.

Valid Reasons for Exemption

Exemption Category	Description	Examples
Resale	Items purchased for resale.	Products bought by retailers for inventory.
Manufacturing	Qualifying equipment and materials used in production.	Machinery, raw materials for production.
Nonprofit Organizations	Tax-exempt entities making qualified purchases.	Purchases by charitable organizations.
Government Agencies	Federal, state, or local government entities.	Office supplies bought by government offices.

What is exempt from sales tax in Arkansas?

Over 80% of business owners face challenges navigating sales tax compliance. Understanding Arkansas sales tax exemptions can help businesses reduce costs, increase revenue, and streamline operations.

This table highlights key exempt items:

Category	Exempt Items
Essential Goods	Groceries: Eligible food and food ingredients are taxed at a reduced rate.
	Prescription drugs and insulin.
	Durable medical equipment and prosthetics for home use with a prescription.
Agricultural Products	Seeds, fertilizers, pesticides, and feed for livestock.
	Machinery and equipment used directly in farming.
Manufacturing	Machinery and equipment used in manufacturing or processing.
	Utilities used in manufacturing (e.g., electricity and natural gas).
Nonprofit Organizations	Purchases by qualifying nonprofit organizations for exempt purposes.
Government Entities	Purchases made by federal, state, and local government entities.
Educational Materials	Textbooks and educational materials used by schools and universities.
Occasional Sales	Casual sales by individuals not engaged in a business.

Additional Notes

• Some exemptions, such as for agricultural or manufacturing equipment, may require documentation, such as an exemption certificate.
• Reduced rates may apply to specific categories, like groceries.

What services are exempt from sales tax in Arkansas?

In Arkansas, certain services are exempt from sales tax. Here are examples of services generally not subject to sales tax:

Category	Description	Examples
Professional Services	Services where expertise is the primary component.	Legal services, accounting, consulting.
Medical Services	Healthcare-related services.	Doctor visits, hospital stays, surgeries.
Educational Services	Instructional or educational activities.	Tutoring, college courses, training programs.
Financial Services	Transactions related to banking and finance.	Loan processing, investment management.
Real Estate Services	Services related to real estate transactions.	Home appraisals, property inspections.
Nonprofit Activities	Services provided by qualified nonprofit entities.	Fundraising events, charitable activities.

Arkansas Sales Tax Permits, Registration, and Filing in 2025

This section simplifies obtaining permits, filing returns, and meeting payment deadlines effectively for businesses with buyers in Arkansas.

How do I get a Arkansas sales tax permit?

To obtain a sales tax permit in Arkansas, follow these steps:

• Register Online: Visit the Arkansas Taxpayer Access Point (ATAP) to start your registration.
• Provide Business Details: Submit information such as your business name, address, type of business entity, and federal EIN or Social Security number.
• Pay the Registration Fee: Arkansas does not charge a fee for obtaining a sales tax permit.
• Receive Your Permit: Once approved, you'll receive an Arkansas Sales Tax Permit, which allows you to collect and remit sales tax.
• Note: Arkansas requires businesses with physical or economic nexus to register for a permit before collecting sales tax.

How do I submit a Arkansas sales tax registration?

To register for Arkansas sales tax, follow these steps. Arkansas also offers customer support for registration through their website or by phone at (501) 682-7104.

Determine if You Need to Register

You must register for Arkansas sales tax if your business:

• Has a physical presence (nexus) in Arkansas (e.g., office, warehouse, employees).
• Meets economic nexus thresholds by making over $100,000 in sales or 200 or more separate transactions in Arkansas within the current or previous year.

Gather Required Information

Before starting, ensure you have:

• Business Information: Legal name, DBA (if applicable), federal EIN or SSN.
• Address Details: Physical and mailing addresses.
• Business Type: LLC, sole proprietorship, corporation, etc.
• Sales Estimates: Estimated taxable sales in Arkansas.
• Bank Account Information: For filing and payment setup.

Register Online

• Go to the Arkansas Taxpayer Access Point (ATAP).
• Create an account or log in.
• Select Register a New Business and follow the prompts to complete your sales tax registration.

Submit Application

• Review the form for accuracy before submitting.
• Once approved, you will receive your Arkansas Sales and Use Tax Permit, allowing you to collect and remit sales tax.

Begin Collecting and Filing Sales Tax

• Start collecting Arkansas sales tax on taxable transactions.
• File and remit collected sales tax through the ATAP portal based on your assigned filing frequency (monthly, quarterly, or annually).

Arkansas Sales Tax Filing

This section breaks down Arkansas sales tax requirements, including filing rules, taxable items, and permits.

What are the main Arkansas filing requirements?

Arkansas sales tax filing requirements depend on the size and frequency of taxable sales:

• Filing Frequency: Businesses must file monthly, quarterly, or annually based on their total sales tax liability.
• Due Date: Returns are due on the 20th of the month following the reporting period.
• Filing Method: Returns must be filed electronically through the Arkansas Taxpayer Access Point (ATAP).
• Additional Requirements: Businesses must report all taxable and exempt sales and remit payment for collected taxes by the due date to avoid penalties and interest.

Filing Frequency Criteria

Filing Frequency	Criteria
Monthly	For businesses collecting more than $200 in tax per month.
Quarterly	For businesses collecting $200 or less in tax per month but more than $1 per quarter.
Annually	For businesses collecting $1 or less in tax per quarter.

What does Arkansas sales tax apply to?

Arkansas sales tax applies to the following categories, with certain exemptions such as for groceries, prescription medications, and manufacturing equipment.

Category	Description	Examples
Tangible Personal Property	Most goods, unless exempt.	Furniture, electronics, clothing (if taxable).
Taxable Services	Certain services are subject to sales tax.	Amusements, cleaning services, some repairs.
Digital Goods	Digital products transferred electronically.	Prewritten software, e-books, digital media.
Leases and Rentals	Rentals of equipment and property.	Equipment rentals, car rentals.
Prepared Foods	Meals and drinks sold by food service businesses.	Restaurant meals, takeout, catering.

Note: Arkansas also allows local jurisdictions to impose additional sales taxes, which may increase the total rate depending on the location of the transaction.

How to file sales tax in Arkansas

To file sales tax in Arkansas, follow these steps:

• Log in to ATAP: Access the Arkansas Taxpayer Access Point (ATAP) using your credentials.
• Complete the Sales Tax Return: Enter total taxable sales, exempt sales, and any applicable local taxes.
• Calculate Tax Due: ATAP automatically calculates the sales tax owed based on your entries.
• Submit Payment: Pay electronically through ATAP or by other approved methods.
• Meet Deadlines: Returns are due by the 20th of the month following the reporting period (monthly, quarterly, or annually, depending on your assigned frequency).
• Maintain Records: Keep copies of filed returns and payment confirmations for audit purposes.

FAQs

What day is Arkansas sales tax due?

Arkansas sales tax is due on the 20th of the month following the reporting period for monthly and quarterly filers, or January 20th for annual filers. Deadlines adjust to the next business day if they fall on weekends or holidays.

Is there a tax-free weekend in Arkansas?

Yes, Arkansas offers a tax-free weekend annually, typically during the first weekend in August. During this time, certain school supplies, clothing, and footwear are exempt from state and local sales taxes.

What is the penalty for paying sales taxes late in Arkansas?

In Arkansas, late sales tax payments incur a 5% penalty per month (up to 35%) plus interest on unpaid taxes. Penalties may be waived for reasonable cause.

Automate Your Arkansas Sales Tax with Kintsugi

Managing Arkansas sales tax compliance can be complex, from verifying local tax rates to tracking exemptions and meeting filing deadlines. Kintsugi simplifies this process with powerful automation tools designed for modern businesses.

Feature	Description
Accurate Tax Rate Calculations	Automatically apply the correct state and local sales tax rates based on your customer’s location.
Exemption Management	Seamlessly identify and apply exemptions for groceries, prescription medications, and other qualifying items.
Effortless Filing	Streamline your tax reporting and filing process with integrations that calculate, track, and submit sales tax payments.
ERP and eCommerce Integration	Connect with platforms like Shopify, QuickBooks, Amazon, and more for seamless tax data management.

Let Kintsugi handle the complexities of Arkansas sales tax so you can focus on growing your business. Visit our Product Platform and Pricing pages to learn more and get started today!