The Arkansas state sales tax rate is 6.5%. Some cities and counties add up to a 3.5% local sales tax. Certain items are exempt. The average total sales tax after local taxes is 9.26%.
Sales Tax Collection and Rates
If your Arkansas business sells taxable goods or services, you must collect sales tax from customers and send it to the state. This is an important responsibility, and you could face penalties for not following sales tax laws.
Historical Perspective
Sales tax has a long history, dating back to ancient Egypt. Arkansas first passed a sales tax in 1935 at a lower rate, which has gradually increased over time to 6.5% today.
Additional Information
- Cities or counties marked with † have a local sales tax. The county rate ranges from 0% to 3.25%, while the cities rate varies from 0% to 3.5%.
- Some taxes in Arkansas include rental tax, sellers use tax, lodgings tax, and more.
- Sales tax revenue is an essential source of income for the state, contributing to funding and governance.
- As a business owner in Arkansas, it is crucial to collect sales tax from customers and remit it to the state.
You can use a sales tax calculator to find the total price including tax.