Arkansas sales tax is a tax on most goods you buy, set at 6.5% statewide, plus local taxes that vary by county and city

When you buy something in Arkansas, you pay the state sales tax of 6.5% on top of the price. Most counties and cities add their own local sales tax on top of that. The total you pay depends on where you are in the state. For example, if you buy a $100 item in Pulaski County (which includes Little Rock), you pay 6.5% state tax plus 2.5% local tax, for a total of 9%. In other counties, the local rate is different, so your total could be 7%, 8%, or higher.

The state collects the sales tax and sends a portion to local governments. You do not pay sales tax separately—it is added to your bill at checkout. The store is responsible for collecting it from you and sending it to the state.

Key Takeaways

  • Arkansas state sales tax is 6.5%, but your total rate includes local taxes that range from 0.5% to 3.625% depending on your county and city.
  • Most goods are taxed, but groceries, prescription medications, and some medical equipment are exempt from sales tax.
  • You pay sales tax at the register when you buy items; the store collects and sends it to the state.
  • Online purchases from out-of-state sellers may or may not be taxed depending on whether the seller has a physical presence in Arkansas.

What items are taxed and what are not

Groceries are not taxed in Arkansas. This includes bread, milk, eggs, vegetables, meat, and other food you cook at home. However, prepared food, restaurant meals, and food from a deli counter are taxed. Candy and soft drinks are also taxed.

Prescription medications are not taxed. Over-the-counter medicines like aspirin and cold medicine are taxed. Medical equipment such as wheelchairs, walkers, and diabetic supplies may be exempt, but the rules vary by item. If you use medical equipment, ask the seller whether sales tax applies.

Clothing is taxed in Arkansas. Shoes, shirts, pants, and coats all have sales tax added. Services like haircuts, repairs, and labor are generally not taxed, though some services have their own rules.

Local sales tax rates by county

Arkansas has 75 counties, and each one sets its own local sales tax rate. The state rate is always 6.5%, but local rates range from 0.5% to 3.625%. This means your total sales tax bill can be anywhere from 7% to 9.625% depending on where you shop.

The largest cities have some of the highest combined rates. Little Rock (Pulaski County) has a 9% total rate. Fayetteville (Washington County) has an 8.625% total rate. Smaller towns and rural areas often have lower local rates, sometimes as low as 7% total.

If you move between counties or shop near a county line, your rate changes. A store in one county charges a different rate than a store across the line. You can find your exact local rate by entering your address on the Arkansas Department of Finance and Administration website or by asking the store.

How sales tax is calculated at checkout

The store's register automatically calculates sales tax based on your location. If you buy a $50 item in a county with a 9% total rate, the tax is $4.50, and your total bill is $54.50. The tax is rounded to the nearest cent.

Some stores show the tax separately on your receipt so you can see how much you paid in tax. Others include it in the total. Either way, the amount you owe is the same. If you buy multiple items, tax is calculated on each taxable item, then added together.

If you return an item, the store refunds the tax along with the purchase price. If you exchange an item for a different one, the store recalculates tax based on the new item's price.

Sales tax on online and out-of-state purchases

When you buy something online from a large retailer like Amazon, you usually pay Arkansas sales tax if the seller has a warehouse or office in Arkansas. This is called "nexus." If the seller has no physical presence in the state, they may not charge you sales tax at checkout, though Arkansas law says you technically owe "use tax" on those purchases.

Use tax is a tax on items you buy outside Arkansas or online and bring into the state. It is the same rate as sales tax. Most people do not pay use tax because it is not collected at checkout and is rarely enforced for individual purchases. However, if you buy a car or other high-value item out of state, you may owe use tax when you register it in Arkansas.

Small online sellers and marketplaces are not required to collect sales tax in every state. If you buy from a small seller and no tax is charged, you are not responsible for tracking it down and paying it yourself as an individual.

Who collects and where the money goes

The store collects sales tax from you at the register. The store then sends the tax to the Arkansas Department of Finance and Administration, usually monthly or quarterly depending on the store's size. The state keeps the 6.5% state portion and distributes the local portion to the county and city where the purchase was made.

Local governments use their share of sales tax to fund schools, roads, police, fire departments, and other services. Some cities and counties have voted to add extra sales tax for specific projects like a new library or stadium. These temporary taxes expire after a set number of years unless voters renew them.

Frequently Asked Questions

Do I pay sales tax on groceries in Arkansas?

No. Groceries like bread, milk, eggs, meat, and vegetables are not taxed. However, prepared food, restaurant meals, candy, and soft drinks are taxed. If you are unsure whether an item counts as a grocery, ask the cashier.

What is the difference between sales tax and use tax?

Sales tax is charged when you buy something in a store or from an online seller with a presence in Arkansas. Use tax is owed on items you buy outside the state or online from sellers without an Arkansas presence. They are the same rate, but use tax is rarely collected from individuals at checkout.

Why does the sales tax rate change depending on where I shop?

Arkansas allows each county and city to set its own local sales tax rate on top of the 6.5% state rate. A store in Little Rock charges a different rate than a store in a smaller town because they are in different tax jurisdictions.

Do I have to pay sales tax on prescription medications?

No. Prescription medications are exempt from sales tax in Arkansas. Over-the-counter medicines like aspirin and cough syrup are taxed. Medical equipment may be exempt depending on the item—ask the seller if you are unsure.

Can I get a refund of sales tax I already paid?

If you return an item within the store's return window, you get a refund of the full purchase price including tax. If you exchange an item for a different one, the store recalculates tax based on the new item's price and adjusts your refund accordingly.