Navigating Sales Tax in Arkansas

This guide provides an overview of Sales Tax in Arkansas, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Arkansas.

Last Updated: May 2025
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1935

Arkansas became the first U.S. state to implement a statewide sales tax by popular vote.

Arkansas at a glance.

State

Arkansas

Tax Rate Range

6.5% - over 11%

Economic Nexus Threshold

$100,000 in annual sales or 200 transactions into the state

Filling Deadlines

20th of the month following the reporting period

Is SaaS Taxable?

No

Base Tax Rate:

6.5%

When should your
business collect Sales
Tax in Arkansas?

You must collect Arkansas sales tax as soon as your business establishes physical or economic nexus. This includes having a physical presence such as employees, inventory, or a storefront, or exceeding the economic threshold of $100,000 in sales or 200 transactions. Once nexus exists, you must charge sales tax on all taxable sales delivered to Arkansas customers.

Arkansas physical sales tax nexus.

A physical sales tax nexus in Arkansas formed when a business maintains a physical presence in the state.

Sales tax physical nexus checklist for Arkansas

The following conditions might establish a physical nexus in Arkansas:

Which services are taxable in Arkansas?

Arkansas taxes only certain specified services, and most professional services remain exempt.

Arkansas sales tax information:

Sales tax in Arkansas is calculated using a combined rate made up of the state tax plus any county and city local taxes, based on the destination of the sale.

Taxable items include tangible personal property, digital goods, prepared food, lodging, utilities, certain rentals, and specified taxable services.

Register for a sales tax permit through the Arkansas Taxpayer Access Point (ATAP) system. Approval is issued online, and the permit must be kept active through ongoing filings.

Charge the correct combined state and local rate based on where the product is delivered, show the tax separately on receipts, collect it at the point of sale, and remit it through ATAP according to your filing frequency.

Sales Tax return due dates explained.

Arkansas requires sales tax returns to be filed monthly, quarterly, or annually based on the business’s sales volume. All returns, regardless of frequency, are due on the 20th of the month following the reporting period. If the due date falls on a weekend or holiday, the return is due on the next business day. Timely filing and payment are essential to avoid penalties.

Quarterly Filing Deadlines

FAQs

Marketplaces collect tax on your behalf, but you must still register if you exceed economic nexus thresholds.

Yes. Shipping charges are taxable in Arkansas when the underlying sale is taxable.

Yes. Arkansas taxes digital goods such as e-books, movies, music, and SaaS.

Related content.

Navigating Sales Tax in Arkansas

This guide provides an overview of Sales Tax in Arkansas, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Arkansas.

Last Updated: May 2025
Group 427320837 e1763784339445

1935

Arkansas became the first U.S. state to implement a statewide sales tax by popular vote.

Arkansas at a glance.

State

Arkansas

Tax Rate Range

6.5% - over 11%

Economic Nexus Threshold

$100,000 in annual sales or 200 transactions into the state

Filling Deadlines

20th of the month following the reporting period

Is SaaS Taxable?

No

Base Tax Rate:

6.5%

When should your
business collect Sales
Tax in Arkansas?

You must collect Arkansas sales tax as soon as your business establishes physical or economic nexus. This includes having a physical presence such as employees, inventory, or a storefront, or exceeding the economic threshold of $100,000 in sales or 200 transactions. Once nexus exists, you must charge sales tax on all taxable sales delivered to Arkansas customers.

Arkansas physical sales tax nexus.

A physical sales tax nexus in Arkansas formed when a business maintains a physical presence in the state.

Sales tax physical nexus checklist for Arkansas

The following conditions might establish a physical nexus in Arkansas:

Which services are taxable in Arkansas?

Arkansas taxes only certain specified services, and most professional services remain exempt.

Arkansas sales tax information:

Sales tax in Arkansas is calculated using a combined rate made up of the state tax plus any county and city local taxes, based on the destination of the sale.

Taxable items include tangible personal property, digital goods, prepared food, lodging, utilities, certain rentals, and specified taxable services.

Register for a sales tax permit through the Arkansas Taxpayer Access Point (ATAP) system. Approval is issued online, and the permit must be kept active through ongoing filings.

Charge the correct combined state and local rate based on where the product is delivered, show the tax separately on receipts, collect it at the point of sale, and remit it through ATAP according to your filing frequency.

Sales Tax return due dates explained.

Arkansas requires sales tax returns to be filed monthly, quarterly, or annually based on the business’s sales volume. All returns, regardless of frequency, are due on the 20th of the month following the reporting period. If the due date falls on a weekend or holiday, the return is due on the next business day. Timely filing and payment are essential to avoid penalties.

Quarterly Filing Deadlines

FAQs

Marketplaces collect tax on your behalf, but you must still register if you exceed economic nexus thresholds.

Yes. Shipping charges are taxable in Arkansas when the underlying sale is taxable.

Yes. Arkansas taxes digital goods such as e-books, movies, music, and SaaS.

Related content.

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