Arkansas Sales Tax: The State Rate and Local Add-Ons

Arkansas has a state sales tax of 6.5 percent. However, most purchases in Arkansas are subject to a higher total rate because cities and counties add their own local sales taxes on top of the state rate. Your actual sales tax depends on where you make the purchase within the state.

Local tax rates range from 0.125 percent to 5.375 percent, which means the combined state and local rate can be as low as 6.5 percent in some areas or as high as 11.875 percent in others. A purchase that costs $100 might have $6.50 in tax in one county and $11.88 in another, depending on the local rates in effect.

Key Takeaways

  • Arkansas state sales tax is 6.5 percent, but local taxes add between 0.125 and 5.375 percent on top of that amount.
  • The total sales tax you pay depends on the city and county where you make your purchase, not where you live.
  • Groceries, prescription medications, and medical devices are exempt from Arkansas sales tax.
  • You can find your exact local rate by entering your address on the Arkansas Department of Revenue website or asking a retailer.

How Local Sales Taxes Work in Arkansas

When you buy something in Arkansas, the retailer collects both the state tax and any local taxes that explore to that location. The local portion goes to the city or county where the sale happened. This means the tax rate can change depending on which side of a city or county line you cross, even if you are buying the same item.

Some Arkansas cities have higher local rates than others because they use sales tax revenue for schools, roads, public safety, or other services. A city might add 2 percent while a neighboring county adds only 0.5 percent. The retailer's register is programmed with the correct rate for that address, so you do not have to calculate it yourself.

What Is and Is Not Taxed in Arkansas

Not everything you buy in Arkansas is subject to sales tax. Groceries — items you buy at a supermarket to cook at home — are not taxed. This includes bread, milk, vegetables, meat, and canned goods. However, prepared food, restaurant meals, and items from a deli counter are taxed at the full rate.

Prescription medications and medical devices prescribed by a doctor are also exempt from sales tax. Over-the-counter medicines like pain relievers and cold medicine are taxed. Clothing and shoes are taxed in Arkansas, unlike some other states that exempt them.

Services are generally not subject to sales tax in Arkansas. If you pay a plumber, electrician, or hair salon, you typically do not pay sales tax on the labor. However, if you buy a product from them — like a bottle of shampoo at a salon — that product is taxed.

Finding Your Exact Local Sales Tax Rate

The Arkansas Department of Revenue maintains a sales tax rate lookup tool on its website. You can enter your street address, city, or ZIP code to see the exact combined state and local rate for that location. This tool is updated regularly as cities and counties change their rates.

If you are shopping online or by phone and want to know the tax rate before you buy, you can also call the retailer and give them your address, or check the retailer's website — most major retailers show the estimated tax before you complete your purchase. Local tax rates can change, so if you are planning a large purchase, it is worth checking the current rate.

Sales Tax on Online and Out-of-State Purchases

If you order something online from a retailer that has a physical location in Arkansas or meets certain sales thresholds, Arkansas sales tax applies to your order. The retailer collects the tax based on the address where the item is being shipped. If you order from a retailer with no Arkansas presence and no obligation to collect Arkansas tax, you technically owe "use tax" on that purchase, though most individuals do not report it.

Use tax is a backup tax that applies when sales tax was not collected. It is the same rate as sales tax for your location. In practice, use tax is rarely enforced against individual shoppers, but it exists in Arkansas law. Businesses are more likely to be required to track and report use tax on their purchases.

How Sales Tax Affects Your Budget

Because Arkansas sales tax rates vary by location, the total cost of your purchase is not always clear from the price tag. A $50 item costs $53.25 in a 6.5 percent tax area but $55.94 in an 11.875 percent tax area. Over time, this difference adds up, especially if you live in a high-tax county.

If you are moving to Arkansas or relocating within the state, checking the local sales tax rate for your new area can help you understand how much more or less you will pay for everyday purchases. Grocery shopping is the same everywhere because groceries are not taxed, but other regular expenses like gas, household supplies, and clothing will vary.

Frequently Asked Questions

Is Arkansas sales tax the same everywhere in the state?

No. The state rate is 6.5 percent everywhere, but local taxes range from 0.125 to 5.375 percent depending on your city and county. Your total rate could be anywhere from 6.5 to 11.875 percent.

Do I pay sales tax on groceries in Arkansas?

No. Groceries purchased at a supermarket are not taxed. This includes fresh produce, meat, dairy, and canned goods. Prepared foods, restaurant meals, and deli items are taxed.

What if I buy something online and have it shipped to Arkansas?

If the retailer has a physical location in Arkansas or meets sales thresholds, Arkansas sales tax is collected based on your shipping address. If not, you may owe use tax, though it is rarely enforced for individual purchases.

Can the local sales tax rate change?

Yes. Cities and counties can adjust their local rates, though changes are not frequent. Check the Arkansas Department of Revenue website before making a large purchase to confirm the current rate for your location.

Are clothes and shoes taxed in Arkansas?

Yes. Unlike some states, Arkansas taxes clothing and shoes at the full sales tax rate. There is no clothing exemption.