Arkansas charges 6.5% sales tax on vehicle purchases, plus local taxes that vary by county

Arkansas applies a 6.5% state sales tax to all vehicle purchases. On top of that, your county adds its own local sales tax, which ranges from 0.125% to 2.875% depending on where you live. The total you pay is the state rate plus your county's rate combined.

The tax is calculated on the purchase price of the vehicle. If you buy a car for $20,000 in a county with a 1% local tax, you would pay $20,000 × 0.075 (6.5% + 1%) = $1,500 in sales tax. Some counties have higher rates, so your actual total tax could be lower or higher than this example.

You pay this tax when you register the vehicle with the Arkansas Department of Motor Vehicles, not at the dealership. The dealership does not collect it — you settle it during the title and registration process.

Key Takeaways

  • Arkansas state sales tax on vehicles is 6.5%, and your county adds between 0.125% and 2.875% on top of that amount.
  • The tax is based on the purchase price of the vehicle, and you pay it when you register with the Department of Motor Vehicles, not at the dealership.
  • Different counties have different local tax rates, so the total you owe depends on where you live or where the vehicle will be registered.
  • Trade-in value reduces the taxable amount — you pay tax only on the net price after subtracting what the dealer gave you for your old vehicle.

How county location affects your total tax

Your county's local sales tax rate is the deciding factor in how much you actually pay. Pulaski County (which includes Little Rock) charges 2.875% local tax, making the combined rate 9.375%. Faulkner County charges 1.5% locally, bringing the total to 8%. Some rural counties charge only 0.125%, which means you pay just 6.625% total.

If you are buying a vehicle in one county but registering it in another, the tax rate of the county where you register it is what applies. This matters if you live near a county line — registering in a lower-tax county saves money, but you must actually live or keep the vehicle there.

You can find your county's exact local rate by contacting your county assessor's office or checking the Arkansas Department of Revenue website, which lists all county rates.

Trade-ins and how they reduce what you owe

If you trade in an old vehicle, the sales tax applies only to the difference between the new car's price and what the dealer gives you for the trade-in. This is called the net taxable amount. If your new car costs $25,000 and the dealer credits you $8,000 for your old car, you pay tax on $17,000, not $25,000.

The dealer handles this calculation at the time of sale. When you go to register the vehicle, you will bring the bill of sale showing the trade-in credit, and the Department of Motor Vehicles will use that net amount to calculate the tax you owe.

Keep the bill of sale and any paperwork showing the trade-in amount — you will need it to prove the reduced taxable price if there are any questions during registration.

Private sales and out-of-state purchases

If you buy a vehicle from a private seller in Arkansas, you still owe sales tax on the purchase price. You pay it during registration, just as you would with a dealership purchase. The tax is based on the price you and the seller agreed to, which you will report on the title process.

If you buy a vehicle out of state and bring it to Arkansas to register it, Arkansas sales tax applies. You cannot avoid the tax by purchasing elsewhere. The Department of Motor Vehicles will calculate and collect the tax based on the vehicle's fair market value if the purchase price seems unusually low.

For out-of-state purchases, bring the bill of sale and title from the other state when you register. The DMV will use the documented purchase price to calculate your Arkansas tax.

When you pay the tax and where

You pay sales tax when you explore for title and registration at your county's Department of Motor Vehicles office or through an authorized third-party registration service. You cannot pay it at the dealership — the dealership's job is to sell you the car, not to collect state taxes.

Bring your bill of sale, proof of insurance, and a valid ID. The DMV staff will calculate the exact amount owed based on your county's tax rate and the vehicle's purchase price. You can pay by cash, check, or card, depending on the office.

Registration must happen within 30 days of purchase. If you delay beyond that, you may face late fees in addition to the sales tax.

Special cases: electric vehicles and other exemptions

Arkansas does not offer a sales tax exemption for electric vehicles or hybrids. You pay the full state and local sales tax rate regardless of the vehicle type or fuel source.

Vehicles purchased by nonprofit organizations, government agencies, or for specific commercial uses may may have access to for exemptions, but these are narrow and require documentation. If you believe your purchase falls into an exemption category, ask the DMV staff or contact the Arkansas Department of Revenue before you register.

Most personal vehicle purchases are subject to the full tax rate with no reduction or exemption available.

Frequently Asked Questions

What is the total sales tax rate in my county?

The total is 6.5% state tax plus your county's local rate. To find your county's local rate, contact your county assessor's office or visit the Arkansas Department of Revenue website, which lists all 75 county rates. Rates range from 0.125% to 2.875% locally, so your total could be anywhere from 6.625% to 9.375%.

Do I pay sales tax on a used vehicle?

Yes. Used vehicles purchased from a dealer or private seller are subject to the same 6.5% state tax plus local tax. The tax is based on the purchase price you pay, not the vehicle's original price or book value.

Can I avoid sales tax by registering in a different county?

No. The tax rate that applies is the rate of the county where you register the vehicle and where you will keep it. You cannot register a vehicle in a low-tax county if you actually live in a high-tax county — the DMV requires proof of residency or where the vehicle will be garaged.

What happens if I buy a car and don't register it right away?

You must register within 30 days of purchase. If you wait longer, you will owe late fees on top of the sales tax. The sales tax amount itself does not change, but penalties add to your total cost.

Is sales tax the only cost I pay at registration?

No. You also pay registration fees, which vary by vehicle weight and type. Sales tax and registration fees are separate charges. Bring enough money or a payment method to cover both when you go to the DMV.