Arkansas

Provinces
Arkansas
Provinces
Arkansas
About
Arkansas
About
Arkansas
Arkansas
Arkansas

Standard rate

The standard rate in Arkansas for sales tax for 2024 is 6.5-11.5%.

Reduced rate

The reduced rate in Arkansas for sales tax ranges from 0-10%.

Sales of tax-free products and services

Long-Term Rental Vehicle Tax is exempt from sales tax in Arkansas.

Who is Obliged to Register for Sales Tax in Arkansas

When you sell in Arkansas and have “sufficient activity” in the state, you need to be registered to collect and pay sales tax in Arkansas.
Standard rate 6.5-11.5% Reduced rate 0-10% Threshold $100,000
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Threshold

Starting July 1, 2019, online sellers or remote sellers with an economic presence or establishing nexus in Arkansas must register to collect sales tax if they have $100,000 in annual Arkansas gross sales or 200+ transactions to Arkansas customers. Merchant thresholds by state Marketplace thresholds by state The special rules are applicable to the SAAS business. Software as Service Tax Thresholds by state.

Online Marketplaces

  • If all your sales in Arkansas come from a marketplace reseller platform, in this case, you can’t register for paying sales tax in Arkansas. Your marketplace promoter pays the sales tax itself.
  • If you are selling through your own website, then you will need to register for paying sales tax, if you meet the threshold for remote sellers.
  • In general, the same rules apply to the remote seller and the marketplace facilitator.

Sales tax payment and filing date

Depending on your tax liability, determine your filing frequency – either annual, monthly, or quarterly:
  • Annual – $0 to $25.00;
  • Quarterly – $25.01 to $100.00;
  • Monthly – $100.01 and up.
The Arkansas Department of Finance and Administration requires all sales tax filing to be completed by the 20th of the month following the assigned filing period. If the filing due date falls on a weekend or holiday, sales tax is due the next day. Quarterly filing periods end on the last days of March, June, September, and December.

Penalty and interest

  • Late Filing – 5% of the tax due per month or cut (maximal 35%);
  • Late Payment – 5% of the tax due per month or cut (maximum 35%).

Exemption

There are no specific exemptions mentioned in the provided text.

Arkansas Sales Tax Holiday

Arkansas has one annual sales tax holiday that takes place during the first weekend of August. This means it starts at 12:01 am on the Saturday of the first weekend in August and runs for 48 hours, ending at 11:59 pm on the following Sunday.

Here’s a breakdown of the Arkansas tax holiday:

Dates: Typically falls on the first weekend of August. For 2024, it’s Saturday, August 3rd to Sunday, August 4th.

Items exempt from tax:

  • Clothing and footwear: Priced at less than $100 per item;
  • School supplies (general);
  • School art supplies;
  • School instructional materials;

Important notes:

  • All retailers in Arkansas are required to participate in the sales tax holiday.
  • Local and state sales tax are not charged on qualifying items during this period.

Arkansas Sales Tax Nexus:

  • Physical Nexus: Physical presence, such as having an office, warehouse, employees, or other tangible property in the state, establishes Nexus for sales tax.
  • Economic Nexus: For sales tax purposes, a business must have more than $100,000 in sales or 200 transactions in Arkansas during the current or previous year to establish economic Nexus​
October 10, 2024 139
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