Key takeaways
- Arkansas sales tax rates: The state rate is 6.5%, and local taxes push combined rates up to about 11.6%. Since January 1, 2026, groceries are taxed at 0% at the state level, though local taxes still apply.
- Economic nexus: Remote sellers must collect once they exceed $100,000 in Arkansas sales or 200 transactions in the current or previous calendar year.
- Filing & penalties: Returns are due on the 20th of the month after the reporting period. Failure to file and failure to pay each cost 5% per month, up to 35%.
Arkansas sales tax key facts (2026)
| Item | Arkansas |
|---|---|
| Statewide sales tax rate | 6.5% |
| Combined rate range | up to ~11.6% (local 0–5%) |
| Economic nexus threshold | $100,000 or 200 transactions (current or prior year) |
| Sourcing | Destination-based |
Collect and file Arkansas sales tax with Taxually: LumaTax monitors your nexus, registers you and files your returns.
Is SaaS taxable?
No.
| Item | Arkansas |
|---|---|
| Groceries (home consumption) | 0% state (eff Jan 1 2026); local tax still applies |
| Return due date | 20th of the month after the reporting period |
| Governing agency | Arkansas DFA |
What is the sales tax rate in Arkansas?
Arkansas’s state sales tax rate is 6.5%. City and county taxes (roughly 0–5%) are added on top, and Arkansas has some of the highest combined rates in the country — up to about 11.6% in some jurisdictions. A 2% tourism tax also applies to certain transactions such as short-term rentals and tourism admissions.
Look up the exact combined rate by address with the DFA local tax lookup rather than relying on the state rate alone.
Do you have sales tax nexus in Arkansas?
Nexus is the connection that obligates your business to collect and remit Arkansas sales tax. You can establish it two ways — physically or economically. Either one is enough.
Physical nexus
You have physical nexus if you have a tangible presence in Arkansas, such as:
- An office, warehouse, or distribution center in Arkansas
- Employees or staff in the state
- Property or inventory (including Amazon-FBA stock) in Arkansas
Economic nexus
Out-of-state sellers establish economic nexus once they exceed $100,000 in Arkansas sales or 200 separate transactions in the current or previous calendar year. Crossing either threshold triggers a collection obligation.
Marketplace facilitators (Amazon, Etsy, and similar) collect and remit on the sales they facilitate; if you sell only through a marketplace, those sales generally don’t count toward your own threshold, but direct sales through your own channels do.
What is taxable in Arkansas?
Most tangible personal property is taxable, along with some services (Arkansas taxes more services than many states, including certain repair and installation labor). Exemptions include items such as agricultural inputs, manufacturing equipment, and prescription drugs. Shipping and handling tied to a taxable sale are generally taxable.
Arkansas also runs a Back-to-School sales tax holiday each August, exempting clothing under $100 and school supplies from state and local tax.
Is SaaS taxable in Arkansas?
No. Arkansas does not tax SaaS. (Note that downloaded digital products such as e-books, apps, and downloadable software are taxable when sold to end users — SaaS is the exception.)
How is food taxed in Arkansas?
As of January 1, 2026, Arkansas eliminated its state sales tax on groceries (the previous reduced rate was 0.125%), so food for home consumption is now taxed at 0% at the state level — though local taxes still apply. Prepared food, candy, and soft drinks remain taxable at the full state and local rates.
How to register for an Arkansas sales tax permit
To collect Arkansas sales tax you need a sales tax permit. Taxually can register for you, or you can apply online through the Arkansas Taxpayer Access Point (ATAP). Registration carries a $50 non-refundable fee, and the permit typically arrives by mail in 8–10 working days.
You’ll need your SSN or ITIN, business identification details, entity type, the nature of your business, and your NAICS code.
How to collect sales tax in Arkansas
Arkansas is a destination-based state — charge tax based on where the buyer receives the goods, whether you’re located inside or outside Arkansas. Apply the full combined state-plus-local rate for that delivery address.
Filing and paying Arkansas sales tax
The DFA assigns monthly, quarterly, or annual filing based on the tax you collect. Returns are due on the 20th of the month following the reporting period (next business day if that falls on a weekend or holiday).
File and pay online through ATAP, or by mail using Form ET-1 from the DFA. Taxually’s software automates the full process.
Prompt-payment discount: Arkansas gives a 2% discount on the state and local tax due for timely filing, capped at $1,000 per month.
Penalties for late or non-compliant filing
Failing to file or pay on time triggers these penalties:
- Failure to file: 5% of the tax due per month, up to 35%.
- Failure to pay: 5% of the tax due per month, up to 35%.
- Interest of 10% per year on late or underpaid tax.
Frequently asked questions
What is the sales tax rate in Arkansas in 2026?
The state rate is 6.5%. Local taxes push combined rates as high as about 11.6% in some areas.
What is the economic nexus threshold for Arkansas?
$100,000 in Arkansas sales or 200 separate transactions in the current or previous calendar year.
Is SaaS taxable in Arkansas?
No. Arkansas does not tax SaaS, although downloaded digital products are taxable.
Are groceries taxed in Arkansas?
The state grocery tax was eliminated effective January 1, 2026, so groceries are 0% at the state level — but local taxes still apply. Prepared food, candy, and soft drinks are taxed at full rates.
When are Arkansas sales tax returns due?
On the 20th of the month following your reporting period, or the next business day if that date is a weekend or holiday.
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