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.
What is sales tax in Arkansas 2022?
6.5%
Current Tax Rate is 6.5% (non-food items).
What is the state sales tax in Arkansas?
6.5%
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.
Does Arkansas have local sales tax?
There are more than 300 local taxes in Arkansas since local taxes have become a reality. Most cities and counties have local taxes. Cities and counties have the authority to enact a local sales and use tax if it is passed by an election of the voters in their jurisdiction.
How do I find my local and state sales tax?
Here are more ways to get this information:
- Search online (try a ZIP code search as taxes can vary by community)
- Check local store receipts.
- Ask a competent merchant or cashier in your area.
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.
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.
Is Arkansas a tax friendly state?
According to the Tax Foundation, Arkansas has the third-highest average combined state and local sales tax rate in the nation. But, overall, Arkansas is a tax-friendly state for retirees.
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 is the grocery tax in Arkansas?
0.125%
State Tax Rates
| Statewide Tax Rates | Code | Rate |
|---|---|---|
| State Sales and Use Tax | – | 6.500% |
| State Reduced Food Tax | – | 0.125% |
| State Electricity Manufacturing Tax | – | 1.625% |
| State Manufacturing Utility Tax | – | 0.625% |
What is sales tax in Little Rock AR?
9.625%
14 referendum, Little Rock’s overall local sales-tax rate will increase to 9.625% beginning in January 2022. Even with the proposed increase, comparable sales-tax rates exist in other Arkansas cities, according to data from the Sales Tax Clearinghouse.
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 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.
| Title | Posted |
|---|---|
| Liquor Revenue FYE 2020 | 07/02/2020 |
| Liquor Revenue FYE 2019 | 07/05/2019 |
| Liquor Revenue FYE 2018 | 07/03/2018 |
| Liquor Revenue FYE 2017 | 07/03/2017 |
What is the combined state and local sales tax?
There are five states that have an average local tax higher than their state tax– Alaska, New York, Colorado, Louisiana, Alabama. The combined sales taxes for state and average local range from 0% to 9.47%. The average combined sales tax is 6.35%. 33 states fall above this average and 17 fall below.
What are state and local taxes?
The taxes that can be deducted include state and local (for example, (i.e., city, county or municipal taxes) income taxes and property taxes. Taxpayers can also choose to deduct their sales taxes in place of their state income tax, which would be beneficial to those in states with low or no income taxes.
How do I know if I have to pay local taxes?
Check with your local taxing agency to determine when you need to deposit local taxes. After the end of the year, send Form W-2 to everyone you employed during the year. Form W-2 lists the amount of taxes you withheld from each employee’s wages.
Is Arkansas going to eliminate state income tax?
Arkansas Attorney General proposes eliminating state income tax by 2030 | KATV.
Is Arkansas getting rid of state income tax?
The income tax cuts signed that were signed into law on Thursday are the largest in state history, according to the Department of Finance and Administration. Starting in 2022, the state’s top income tax rate 5.9% will drop to 5.5%. The rate will continue to drop until 2025 when it reaches 4.9%, according to the law.
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.
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%.
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.