Is There Sales Tax In Arkansas?

The state Use Tax rate is the same as the Sales Tax rate, 6.500%. In addition, you are required to remit the city and/or county tax where the items are first delivered in Arkansas. A list of tax rates for cities and counties may be obtained from the Sales Tax and Use Tax Section or downloaded from our website.

What is exempt from sales tax in Arkansas?

Some goods are exempt from sales tax under Arkansas law. Examples include prescription drugs, purchases made with food stamps, and some farming equipment.

What items are taxable in Arkansas?

Arkansas imposes sales tax on all purchases of tangible personal property unless a specific exemption applies. Services are taxable only if the service is specifically enumerated by law as a taxable service. Use tax was designed to assure fair competition between Arkansas businesses and their out-of- state competitors.

Is Arkansas state tax free?

Arkansas collects income taxes from its residents at the following rates. 0.9% on the first $4,299 of taxable income. 2.4% on taxable income between $4,300 and $8,399. 3.4% on taxable income between $8,400 and $12,699.

What is Arkansas sales tax in 2022?

6.5%
Current Tax Rate is 6.5% (non-food items).

Is food taxed in Arkansas?

The information contained in this guide is based on the Arkansas Code and Rules in effect on January 1, 2018. Beginning July 1, 2011, the state sales and use tax rate on food and food ingredients will be reduced to 1.5%.

How much is Arkansas sales tax on a car?

6.5%
A state tax rate of 6.5% applies to all car sales in Arkansas, but your total tax rate will depend on county and local taxes, which may add up to an additional 5%. The average total car sales tax in Arkansas is 9.133%. Buying a car isn’t just about the sticker price.

What states have no sales tax?

The 5 states without sales tax

• Alaska. Known as ‘The Last Frontier’, Alaska is the most tax-friendly state in the country.
• Delaware. The ‘First State’ also does not charge its residents or visitors any state sales tax.
• Montana.
• New Hampshire.
• Oregon.
• Sales tax isn’t the only tax to consider.

Who has to pay sales tax in Arkansas?

Sales and Use Tax
The Arkansas sales tax is 6.5% of the gross receipts from the sales of tangible personal property and certain selected services. “Sale” includes the lease or rental of tangible personal property.

Does Arkansas tax Social Security?

For instance, Arkansas exempts Social Security benefits and up to $6,000 of retirement income from its state income tax. And, as a plus for veterans, all military pension income is tax-exempt.

What is Arkansas grocery tax?

6.500% State Reduced Food Tax. – 01/01/2019. 0.125%

Is Arkansas a high tax state?

Arkansas has a 6.50 percent state sales tax rate, a max local sales tax rate of 6.125 percent, and an average combined state and local sales tax rate of 9.47 percent. Arkansas’s tax system ranks 44th overall on our 2022 State Business Tax Climate Index.

Is there personal property tax in Arkansas?

Arkansans are required to pay personal property taxes every year. Personal property taxes are applied to items such as vehicles, trailers, motorcyles, etc. and are paid to your county collector. Most counties provide online property tax payments, which you can find by visiting ar.gov/tax.

What city has the highest taxes in Arkansas?

Arkansas: Sales Tax Handbook
Combined with the state sales tax, the highest sales tax rate in Arkansas is 12.625% in the city of Gillham.

What state has the highest sales tax?

Here are the 10 states with the highest sales tax rates:

• California (7.25%)
• Indiana (7.00%)
• Mississippi (7.00%)
• Rhode Island (7.00%)
• Tennessee (7.00%)
• Minnesota (6.88%)
• Nevada (6.85%)
• New Jersey (6.63%)

What is Arkansas liquor tax?

“Spirituous Liquor” is taxed at the rates of: Two dollars and fifty cents ($2.50) on each gallon sold or offered for sale in the State of Arkansas AND.
Statistics.

Why is sales tax so high in Arkansas?

In addition to having one of the broader sales tax bases in the country, Arkansas also has the third highest average sales tax rate in the country (including local sales tax rates). Together, these mean that Arkansas is heavily reliant on the sales tax for funding state and local government services.

How long do you have to pay sales tax on a car in Arkansas?

30 days
Calculating Arkansas Car Sales Tax:
To begin with, a vehicle has to be registered with the DMV no later than 30 days from the day it was purchased. The sales tax is calculated on the total amount of the sale (less trade-in value).

Which state has lowest sales tax?

Factoring the combination of state and average local sales tax, the top five highest total sales tax states as ranked by the Tax Foundation for 2021 are: Tennessee 9.55% Louisiana 9.52%
Residents of these states pay the least in sales taxes overall:

• Alaska 1.76%
• Oregon 0%
• Delaware 0%
• Montana 0%
• New Hampshire 0%

How much is property tax in Arkansas?

Overview of Arkansas Taxes
Property taxes in Arkansas are generally lower than in most other states. The statewide average effective property tax rate is just 0.61%, 12th-lowest in the U.S.

Does Arkansas tax retirement income?

The state of Arkansas charges an Individual Income Tax that applies to most forms of retirement income. The only retirement-income sources that are not are subject to income tax in Arkansas are Social Security and railroad retirement benefits. There is a $6,000 deduction on employer sponsored pension plans in Arkansas.