State guide · AR
Arkansas sales tax and property tax
January 2026 ended the state's tax on groceries, but not the city and county taxes on them, and the property tax works on a calendar that runs a year behind.
Facts read on official Arkansas pages on · Checked by Radif Partners · How we calculate
- State sales tax
- 6.5%
- Local sales taxes
- Yes, by address
- Groceries
- Exempt from the state rate
- Clothing
- Taxed like other goods
- Median property tax
- $1,113
- Effective property rate
- 0.52% · #40 of 51
Arkansas charges a 6.5% state sales tax, a rate unchanged since July 1, 2013, and cities and counties add their own taxes based on the delivery address. The big change of 2026 is food: under Act 1008 of 2025, the state rate on food and food ingredients fell to 0% on January 1, 2026, so a $150 grocery bill now owes $0.00 of state tax, though city and county taxes still apply to it. Prescription drugs are exempt, clothing is taxed except on the first weekend of August, and used cars between $4,000 and $10,000 pay a reduced 3.5%. Property tax is modest: the median owner paid $1,113 in 2024 on a $215,600 home (Census ACS), an effective rate of 0.52%, ranked 40 of 51. Homes are assessed at 20% of market value, and the homestead credit reaches $600 on bills paid in 2026.
Total to pay
$106.50
Sales tax $6.50 · 6.5% of the price
| Price before tax | $100.00 |
| State tax · 6.5% | $6.50 |
| Local tax · 0% | $0.00 |
| Total | $106.50 |
Rule applied: general state rate. Exact local rate for an address: Arkansas rate lookup. How this is calculated.
Sales tax in Arkansas
Arkansas belongs to the Streamlined Sales Tax group and has sourced local tax to the delivery address since January 1, 2008, so an online order is taxed at the rate of the city and county where the parcel lands, not where the seller sits. The Department of Finance and Administration (DFA) collects state and local taxes together, and its lookup tools give the local part for any address. After the grocery repeal, that local part is the only tax left on a cart of food.
The car rules are unusually detailed. A used vehicle sold for less than $4,000 owes no sales tax at all, and one priced from $4,000 to under $10,000 is taxed at 3.5% instead of 6.5%: on an $8,000 sedan that is $280 rather than $520. Selling your old car yourself within 60 days before or after buying the next one lowers the taxable amount as if it had been traded in, a credit added by Act 277 of 2021. Local tax on vehicles, boats, aircraft and manufactured homes stops at the first $2,500 of the price, so a $40,000 boat pays the state rate on the full price but local tax only on $2,500. Renting a car for a short period adds a separate 10% state tax.
The August 1 to August 2, 2026 holiday, set by Act 757 of 2011, reaches further than most: it lifts local taxes as well as the state tax, and retailers may not opt out. Clothing and footwear under $100 an item, accessories under $50, school supplies, art supplies, instructional materials and electronic devices used for study all qualify.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | 6.5% | yes | State sales and use tax rate of 6.5% since July 1, 2013. Food and food ingredients carry a 0% state rate since January 1, 2026, but city and county taxes still apply to them. |
| Groceries (food for home) | 0% | yes | State Reduced Food Tax rate is 0.000% effective January 1, 2026 (Act 1008 of 2025). Food and food ingredients remain subject to city and county sales taxes. |
| Clothing | 6.5% | yes | Clothing is taxable except during the August sales tax holiday (items under $100). |
| Prescription drugs | 0% | no | |
| Used motor vehicles, trailers and semitrailers ($4,000 to under $10,000) | 3.5% | Reduced state rate (Ark. Code § 26-52-510); vehicles sold for less than $4,000 are exempt. | |
| Electricity for manufacturing | 1.625% | State Electricity Manufacturing Tax since January 1, 2015. | |
| Short-term vehicle rental | 10% | Additional state Short Term Rental Vehicle Tax. | |
| Parks and Tourism tax | 2% | Additional state tax listed by DFA (code 80-01) on top of the general rate for the covered activities. |
Local sales taxes
Levied by city and county sales and use taxes, collected by DFA and sourced to the point of delivery. Since 2008, local tax on a single transaction is capped (taxed on the first $2,500) only for motor vehicles licensed for highway use, aircraft, watercraft and manufactured housing; businesses can claim rebates of local tax paid on invoices above $2,500. Find the exact combined rate for an address with the official Arkansas lookup, then type the local part into the calculator above.
Sales tax holidays in 2026
| Holiday | Dates | What qualifies |
|---|---|---|
| Arkansas Sales Tax Holiday | August 1, 2026 to August 2, 2026 | Clothing and footwear under $100 per item; clothing accessories under $50 per item; school supplies, school art supplies, school instructional materials and electronic devices used for study. Exempt from both state and local sales tax. |
Worth knowing about Arkansas sales tax
- Act 1008 of 2025 removed the last state sales tax on groceries: the state food rate is 0% from January 1, 2026, while local taxes continue to apply. source
- Arkansas's sales tax holiday falls on the first weekend of August (Act 757 of 2011) and also suspends local taxes; retailers must participate. source
- Used cars priced $4,000 to under $10,000 are taxed at a reduced 3.5% state rate; vehicles under $4,000 are exempt. source
- Selling your old car within 60 days before or after buying another one reduces the taxable amount, like a trade-in (Act 277 of 2021). source
- Local sales tax on boats, cars and other capped items applies only to the first $2,500; state tax applies to the full price. source
- Arkansas is a Streamlined Sales Tax member and sources local tax to the delivery address since January 1, 2008. source
Property tax in Arkansas
An Arkansas tax bill is the product of two years. Values and millage are set in the assessment year, and the county collector collects the tax the following year, by October 15. Owners must list personal property, vehicles included, by May 31 each year, and a value they dispute goes to the county Board of Equalization by the third Monday in August. County quorum courts levy the millage for counties, cities and school districts, and the Assessment Coordination Division of DFA supervises assessment in all 75 counties.
Taxable value is 20% of market value, so the Census median home of $215,600 carries an assessed value of $43,120. Counties reappraise every three, four or five years, and Amendment 79 then smooths the jump: a homestead's taxable value can rise at most 5% a year, other real property 10%, until full assessed value is reached. New construction and substantial improvements, meaning work that adds 25% or more to the value, fall outside the cap. Owners aged 65 or older or disabled can freeze the assessed value of their homestead instead; millage changes still apply, and the freeze ends with a sale.
The Homestead Property Tax Credit comes off the bill itself. It is up to $600 on bills payable in 2026 and rises to $675 for assessment years from 2026 under Act 174 of 2026, meaning bills paid in 2027; one credit per owner per year, claimed with the county assessor by October 15. At the Census ratio of 0.52%, a $250,000 home pays about $1,290 a year before that credit.
Property tax on a home in Arkansas
Typical bill per year
$1,112
| Per month | $93 |
| Median effective rate in Arkansas | 0.52% |
| Median bill paid | $1,113 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | Arkansas |
|---|---|
| Median home value (owner-occupied) | $215,600 |
| Median real estate taxes paid | $1,113 |
| with a mortgage | $1,308 |
| without a mortgage | $860 |
| Effective rate (tax ÷ value) | 0.52% |
| Rank by effective rate (1 = highest) | 40 of 51 |
| Rank by median bill | 49 of 51 |
How the taxable value is set
Assessed value is 20% of market value (Ark. Code § 26-26-303). Counties reappraise on a 3-, 4- or 5-year cycle. Under Amendment 79, the taxable value of a homestead may rise by at most 5% a year and other real property by 10% a year after reappraisal, except for new construction and substantial improvements. Who levies the tax: Local: county quorum courts formally levy millage for counties, cities and school districts; taxes are collected by the county collector the year after assessment. The Assessment Coordination Division (DFA) supervises assessment in all 75 counties.
Payment calendar: Property taxes are payable to the county collector by October 15 each year (next business day if it falls on a weekend or holiday).
Other property tax relief
- Age 65 or disabled assessment freeze. Homestead owners aged 65+ or disabled can freeze the taxable assessed value at the value on the next assessment date; the freeze does not pass to a buyer, and millage changes still apply. source
- Amendment 79 caps. Reappraisal increases are capped at 5% a year for homesteads and 10% a year for other real property until full assessed value is reached. source
Worth knowing about Arkansas property tax
- The homestead credit was raised from $500 to $600 for assessment year 2025 and to $675 for assessment years starting in 2026. source
- Property tax runs on a two-year cycle: values and millage are set in the assessment year, and taxes are collected the following year. source
- Personal property, including vehicles, must be assessed by May 31 each year. source
- The deadline to appeal to the county Board of Equalization is the third Monday in August. source
- A 'substantial improvement' that ends the cap or freeze is a renovation adding 25% or more to the property's value. source