How does sales tax work in Arkansas?

How is sales tax calculated in Arkansas?

The base state sales tax rate in Arkansas is 6.5%. Local tax rates in Arkansas range from 0% to 5%, making the sales tax range in Arkansas 6.5% to 11.5%.

What do you charge sales tax on in Arkansas?

Goods that are subject to sales tax in Arkansas include physical property, like furniture, home appliances, and motor vehicles. Arkansas charges a 1.5% reduced rate on the purchase of groceries. Some services in Arkansas are subject to sales tax.

How does vehicle sales tax work in Arkansas?

Arkansas collects a 6.5% state sales tax rate on the purchase of all vehicles which cost more than 4,000 dollars. Vehicles which were purchased at a cost of 4,000 dollars or less are not applicable for state sales tax, and will not be charged.

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Who is exempt from paying sales tax in Arkansas?

Some customers are exempt from paying sales tax under Arkansas law. Examples include government agencies, some nonprofit organizations, and merchants purchasing goods for resale. Sellers are required to collect a valid exemption or resale certificate from buyers to validate each exempt transaction.

Are Arkansas taxes high?

According to a midyear report from the Tax Foundation, a Washington tax-policy group, Arkansas’ average combined state and local sales-tax rate is 9.48%, making it the third-highest statewide average in the country, behind Louisiana at 9.55% and Tennessee at 9.547%.

Can you make payments on sales tax in Arkansas?

Arkansas has a payment plan for Arkansas state sales tax and businesses can choose to pay monthly or quarterly.

How often do you file sales tax in Arkansas?

In Arkansas, you will be required to file and remit sales tax either monthly, quarterly or annually. Arkansas sales tax returns are always due the 20th of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.

Do I charge sales tax on services?

Depending on your state, the installation and warranty might be subject to sales tax. In other instances, if you provide a service in conjunction with a tangible product, but the product is secondary or incidental, the service might not be taxable at all.

Do I have to charge sales tax in Arkansas?

Arkansas has a statewide sales tax rate of 6.5%, which has been in place since 1935. Municipal governments in Arkansas are also allowed to collect a local-option sales tax that ranges from 0% to 5% across the state, with an average local tax of 2.12% (for a total of 8.62% when combined with the state sales tax).

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How much sales tax do you pay on a used car in Arkansas?

The sales tax sits at 6.5% for used vehicles. Arkansans do not have to pay the sales tax on used vehicles that cost fewer than $4,000.

How much will my tags cost in Arkansas?

The following are registration fees based on your vehicle: 3,000 pounds and under $17. 3,001 to 4,500 pounds $25. 4,501 pounds and over $30.

Can you finance sales tax on a car in Arkansas?

Arkansas law gives you credit for such a sale as long as it was within 45 days before or after the purchase of the recently acquired vehicle. Bring the bill of sale for the old vehicle with you when paying tax so you receive this credit.

What items are tax free in Arkansas?

Smartphones, tablets and computers now included in Arkansas tax-free weekend. That list of tax-free products includes school supplies, art supplies, clothing items under $100 — and new this year — computers, cell phones, and tablets.

Are groceries taxed in Arkansas?

In the state of Arkansas, any food or food ingredients taxed will be taxed at a reduced state rate of 1.5%. Some food items are considered to be ineligible for a reduced rate will be taxed at the regular state rate.

Do you have to pay sales tax on a used tractor in Arkansas?

Arkansas Code Annotated § 26-52-403 provides a sales and use tax exemption for the purchase of farm machinery and equipment. … The gross receipts or gross proceeds derived from the sale of new and used farm equipment and machinery is exempt from gross receipts tax.

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