Free Arkansas Sales Tax Calculator

Arkansas Sales Tax Calculator

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How To Use The Arkansas Sales Tax Calculator

Our Arkansas Sales Tax Calculator is designed to make your tax calculations quick and easy. Follow the simple steps below:

Step-by-Step Guide

Select a ZIP Code or Tax Region
- Use the dropdown menu to search for and select the ZIP code or tax region relevant to your transaction.
- If you’re unsure, start typing the city or ZIP code in the search bar to quickly narrow your options.
Enter the Taxable Amount
- Input the total amount you want to calculate taxes on. This could be the price of goods or services before tax.
- For example, if your item costs $100, simply type “100” into the field.
Get Instant Tax Calculations
- Click “Calculate” to view a detailed breakdown of the applicable tax rates, including:
  - State Tax
  - County Tax
  - City Tax
  - Special Tax (if applicable)
- The calculator will display the total combined tax rate and the exact amount owed.

Example

Let’s say you live in ZIP code 72201 (Little Rock):

Taxable amount: $200
Combined tax rate: 8.625%
Result: You’ll see a breakdown of the $17.25 total tax, including the state, county, and city contributions.

Arkansas Sales Tax Breakdown

Overview of Tax Components

Arkansas sales tax consists of multiple components that combine to form the total tax rate applied to a purchase. Here’s a breakdown:

State Rate
The base tax rate applied across the entire state of Arkansas. For 2025, the state sales tax rate is 6.5%.
County Rate
Additional taxes imposed by individual counties. These rates vary depending on the county. For example, counties like Pulaski may have higher rates than rural areas.
City Rate
Cities can impose their own sales tax rates on top of state and county taxes. Urban areas often have higher city rates due to greater demand for public services.
Special Rate
Certain regions may include special tax rates for transportation or infrastructure projects. These are less common but can significantly affect the total tax rate.

Example:

A purchase in Little Rock (ZIP code 72201) incurs a combined tax rate of 8.625%, which includes the state rate (6.5%), a county rate (1%), and a city rate (1.125%).

Why Regional Variations Matter

Sales tax rates can vary significantly between Arkansas’ urban centers and rural areas. Understanding these differences is crucial for both businesses and residents to ensure accurate tax compliance.

Urban Areas
Cities like Fayetteville (ZIP 72701) or Fort Smith (ZIP 72901) often have higher combined rates due to city-specific taxes that fund local projects like road maintenance or public safety initiatives.
- Example: Fayetteville’s combined rate is 10.75%, significantly higher than the state minimum.
Rural Areas
In contrast, rural regions like Newton County (ZIP 72624) may only apply the state rate and a minimal county rate, resulting in a combined rate as low as 7.5%.
Tourism Hotspots
Areas like Eureka Springs (ZIP 72631) may impose special rates to fund tourism-related infrastructure, leading to higher tax rates.

Table of Arkansas Sales Tax Exemptions

Category	Exemption Description
Nonprofit and Charitable Organizations	Sales by churches, sales by nonprofit humane societies, and sales to organizations like Boy Scouts, Girl Scouts, 4-H Clubs, and Future Farmers of America (FFA).
Food and Agriculture	Sales of raw farm products, livestock, poultry, and dairy; agricultural fertilizers, chemicals, and feedstuffs; food sold in public schools or college cafeterias.
Educational and Cultural	Textbooks and instructional materials sold to schools, tickets to athletic events at schools, and sales to museums and symphonies.
Medical and Health	Prescription drugs, medical equipment paid for by Medicaid/Medicare, insulin, and test strips. Sales of durable medical equipment and prosthetics prescribed by a physician.
Manufacturing	Sales of manufacturing equipment and materials, utilities used in manufacturing processes, and pollution control equipment.
Sales Tax Holiday	Exemptions for clothing, school supplies, and electronic devices during the first weekend of August.
Transportation and Automotive	Sales of specific motor vehicles to municipalities or nonprofit organizations, as well as fuel and parts used in transportation.
Energy	Sales of electricity and natural gas used in specific manufacturing processes or agricultural facilities.
Construction	Sales of property incorporated into a structure during construction and equipment for exempt uses.

Data Retrieved From: https://arkleg.state.ar.us/

Arkansas Sales Tax Exemptions

Arkansas sales tax laws include several exemptions aimed at reducing the tax burden on specific groups, industries, and goods. These exemptions cover a broad range of items, services, and entities, helping to stimulate certain sectors and alleviate costs for nonprofits and individuals.

Sales Tax Overview

Sales tax is levied on retail sales, collected by retailers, and remitted to the state. Retailers retain 2% of state and local taxes as a collection fee if taxes are remitted on time. While sales tax applies broadly, numerous exemptions ensure targeted relief.

Key Exemptions

The following categories of sales are exempt from Arkansas sales tax:

Nonprofit and Charitable Organizations

Sales by churches.
Sales by charitable organizations not engaged in for-profit activities.
Sales to nonprofit humane societies, orphans’ homes, and children’s homes.
Sales to organizations like the Boy Scouts, Girl Scouts, 4-H Clubs, and Future Farmers of America (FFA).

Food and Agriculture

Sales of raw farm products, livestock, poultry, and dairy from small producers.
Sales of agricultural fertilizers, chemicals, vaccines, and feedstuffs.
Food sold in public schools or college cafeterias.
Food and food ingredients purchased by nonprofit agencies for free distribution to the needy.

Educational and Cultural

Sales of textbooks, library books, and instructional materials to public schools or the state.
Tickets to athletic events at public or private elementary and secondary schools.
Sales to museums and symphony orchestras.

Medical and Health

Sales of prescription drugs and medical equipment paid for by Medicaid, Medicare, or government subsidies.
Sales of insulin and test strips.
Rental, sale, or repair of durable medical equipment, prosthetics, and mobility-enhancing equipment prescribed by a physician.

Industrial and Manufacturing

Sales of equipment and materials used in manufacturing, including items to repair or expand existing facilities.
Sales of electricity and natural gas used in manufacturing processes like tile or aluminum production.
Sales of catalysts, chemicals, and equipment for air or water pollution control.

Other Specific Goods and Services

Sales of advertising space in newspapers and periodicals.
Sales of motor fuel on which motor fuel tax has been paid.
Sales of dyed distillate special fuel and biodiesel fuel.
Tickets to certain fairs, rodeos, and nonprofit events.

Sales Tax Holiday

Arkansas offers a sales tax holiday during the first weekend of August, exempting the following:

Clothing, accessories, and equipment.
School supplies, art supplies, and instructional materials.
Electronic devices like laptops and tablets.

Manufacturing-Specific Exemptions

Manufacturers benefit from reduced or exempt rates for certain utilities and materials:

Natural Gas and Electricity: Taxed at a reduced rate of 0.125% for direct use in manufacturing processes.
Equipment and Parts: Exempt if used in repair or replacement of machinery directly involved in production.

Notable Exemptions for Specific Sectors

Transportation and Automotive: Sales of specific motor vehicles to municipalities or nonprofit organizations are exempt.
Energy: Electricity and utilities used in grain drying or aquaculture facilities.
Construction: Sales of property that becomes part of a structure during construction contracts.

FAQ: Arkansas Sales Tax

What is Arkansas’ state sales tax rate?

Arkansas has a state sales tax rate of 6.5%. Additional county, city, and special rates can apply, making the total combined rate vary by location.

What is sales tax, and how is it applied in Arkansas?

Sales tax is a levy on the sale of goods and services. In Arkansas, retailers collect sales tax from customers at the point of sale and remit it to the state.

How does the sales tax holiday work in Arkansas?

The sales tax holiday occurs during the first weekend of August each year. Items such as clothing, school supplies, and electronics are exempt from sales tax during this period.

Who is responsible for collecting and remitting sales tax?

Retailers are required to collect sales tax from customers and remit it to the Arkansas Department of Finance and Administration. Retailers may keep 2% of the state and local tax as a collection fee if they remit on time.

What types of goods are subject to sales tax in Arkansas?

Tangible personal property, digital products, and specified services are generally subject to sales tax. This includes items like clothing, motor vehicles, digital subscriptions, and household appliances.

Are services taxable in Arkansas?

Yes, many services are taxable, including cable television, cleaning services, lawn care, telecommunications, and more. Some services, like medical care, are exempt.

Are groceries taxed in Arkansas?

Food and food ingredients are taxed at a reduced excise rate of 0.125%. Items purchased with Food Stamp benefits are exempt from sales tax.

Are digital products taxable in Arkansas?

Yes, digital products like digital books, audio-visual works, and software subscriptions sold to end-users are subject to sales tax.

How do businesses register to collect sales tax?

Businesses must register with the Arkansas Department of Finance and Administration for a sales tax permit. Registration can be done online.

What happens if a business fails to remit sales tax on time?

Late payments may result in penalties, interest, and the loss of the 5% collection fee.

Are retailers compensated for collecting sales tax?

Retailers can retain 2% of the state and local tax collected, up to $1,000 per month for state tax and $3,000 per month for local tax, as a collection fee if they remit taxes on time.

Why do sales tax rates vary in Arkansas?

Arkansas allows counties and cities to impose additional sales taxes on top of the state rate. These rates vary based on the location and local government regulations.

How can I determine the total sales tax rate for a specific ZIP code?

Use the Arkansas Sales Tax Calculator or visit the Arkansas Department of Finance and Administration website to find rates for specific regions.

What is the highest combined sales tax rate in Arkansas?

Combined rates vary but can exceed 11% in some areas when including state, county, city, and special district taxes.

Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.

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