Arkansas's statewide sales tax is 6.5 percent

Arkansas charges a 6.5 percent sales tax on most retail purchases. This is the base rate set by the state. However, your actual tax rate depends on where you shop, because counties and cities in Arkansas can add their own local sales taxes on top of the state rate. Your total sales tax bill is the combination of the state rate plus any local additions in your area.

The 6.5 percent rate applies to tangible goods — things you can touch and take home. It covers clothing, groceries, household items, electronics, and most other retail purchases. Some items are taxed at a lower rate or not taxed at all, which we cover below.

Key Takeaways

  • Arkansas's state sales tax is 6.5 percent, but your total rate is higher if your county or city adds a local tax.
  • Most counties add between 0.5 and 2.5 percent in local tax, bringing total rates to between 7 and 9 percent depending on where you live.
  • Groceries, prescription medications, and medical equipment are taxed at a lower rate or not taxed, while prepared food and restaurant meals are fully taxed.
  • You can find your exact local rate by entering your address on the Arkansas Department of Finance and Administration website or asking a retailer in your area.

How local taxes change your rate

While the state rate is fixed at 6.5 percent, Arkansas counties and cities have the power to add their own sales taxes. These local additions vary widely. Some counties add as little as 0.5 percent, while others add 2.5 percent or more. A few areas have no additional local tax beyond the state rate, though this is uncommon.

This means your actual sales tax rate depends entirely on your location. If you live in a county that adds 1 percent, your total rate is 7.5 percent. If your county adds 2 percent, you pay 8.5 percent. The same item costs different amounts in tax depending on which city or county you buy it in. Retailers in your area know their local rate and will show it on your receipt.

What items are taxed at a lower rate

Arkansas taxes most groceries at a reduced rate of 1.5 percent instead of the full sales tax rate. This applies to unprepared food you buy at a grocery store or supermarket — items like bread, milk, vegetables, meat, and canned goods. The reduced rate is meant to lower the tax burden on basic food purchases.

Prescription medications and certain medical equipment are either taxed at the reduced 1.5 percent rate or not taxed at all, depending on the specific item. Prepared food — restaurant meals, deli items, and food from a hot bar — is taxed at the full rate. The distinction is whether the food is ready to eat or requires preparation at home.

Items that are not taxed

Arkansas does not charge sales tax on certain purchases. Prescription drugs filled by a licensed pharmacist are not taxed. Medical equipment and devices prescribed by a doctor — such as wheelchairs, hearing aids, and diabetic supplies — are typically exempt. Some educational materials and textbooks may also be exempt under specific circumstances.

Services are generally not subject to sales tax in Arkansas. If you pay for labor, repair work, or professional services, those charges are not taxed. However, if you buy a physical product as part of that service — for example, parts replaced during a repair — the parts themselves may be taxed.

Finding your exact local rate

The easiest way to find your exact sales tax rate is to visit the Arkansas Department of Finance and Administration website and use their sales tax rate lookup tool. You enter your address or zip code, and the tool shows you the combined state and local rate for your area. This takes less than a minute and gives you the precise number.

You can also ask any retailer in your area what the local sales tax rate is — they calculate it every day and can tell you when ready. Your receipt will also show the tax rate applied to your purchase. If you are shopping online from an Arkansas retailer, the checkout page should display the tax rate before you complete your order.

How sales tax is collected and used

When you buy something in Arkansas, the retailer collects the sales tax from you at the time of purchase and holds it temporarily. The retailer then sends the collected tax to the state and local tax authorities on a regular schedule — usually monthly or quarterly, depending on the retailer's size and the rules of their county.

The state portion of the tax goes to the Arkansas state budget and funds state services. The local portion goes to the county or city where the purchase was made and funds local services like schools, roads, and emergency services. This is why rates vary by location — each area sets its own local rate based on its budget needs.

Sales tax on online purchases

Online retailers are required to charge Arkansas sales tax on purchases shipped to an Arkansas address if the retailer has a physical presence in the state or meets certain sales thresholds. Large national retailers like Amazon, Walmart, and Target collect and remit Arkansas sales tax on orders shipped to Arkansas residents. Smaller online sellers may not collect tax, though Arkansas law requires you to report and pay tax on those purchases yourself when you file your state income tax return — though few people do.

When you buy online from an Arkansas retailer or a large national retailer, the tax is calculated based on the delivery address, not where the retailer is located. If you have items shipped to different counties in Arkansas, each shipment is taxed at the rate for that county.

Frequently Asked Questions

What is the total sales tax rate where I live?

Your total rate is the 6.5 percent state rate plus your local county and city additions. Use the Arkansas Department of Finance and Administration rate lookup tool on their website, or ask a local retailer. Rates range from about 7 percent to 9.5 percent depending on your location.

Are groceries taxed the same as other items?

No. Unprepared groceries like bread, milk, and vegetables are taxed at 1.5 percent. Prepared food from restaurants or deli hot bars is taxed at the full rate. The difference is whether the food is ready to eat or requires cooking at home.

Do I pay sales tax on prescription medications?

No. Prescription drugs filled by a licensed pharmacist are not taxed in Arkansas. Over-the-counter medications are taxed at the full rate, but prescription medications are exempt.

Do online purchases have sales tax?

Large online retailers like Amazon and Walmart collect Arkansas sales tax on orders shipped to your address. Smaller sellers may not, though you are technically required to report and pay the tax yourself. The tax is based on your delivery address, not the retailer's location.