Arkansas Sales Tax Guide (2025)

Key Takeaways (Updated 2025)

• The state sales tax rate remains 6.5%. Though SB 289 proposed reducing it to 6.375%, it did not pass the senate committee.
• The economic nexus threshold remains $100,000 in gross sales or 200 transactions.
• Local sales tax rates continue to shift, with multiple updates from 2024–2025 due to annexations and ballot-approved increases.
• Marketplace facilitators must collect on behalf of third-party sellers.
• Businesses must file by the 20th of the month, and most remote sellers file monthly.
• SB 219 repealed the sunset provision on medical marijuana, meaning the state will continue to levy a special privilege tax of 4% on medical marijuana sales.

Do You Need to Collect and Remit Sales Tax in Arkansas? 

If you sell taxable goods or taxable services to Arkansas customers, you likely owe Arkansas sales (excise) tax. Arkansas requires collection from:

• In-state businesses
• Remote sellers who meet economic nexus
• Marketplace facilitators (who collect on behalf of sellers)

If you’re shipping tangible goods, selling digital products, or offering certain services, you must charge customers the correct rate and remit to the DFA.

👉 Need clarity on Arkansas tax rates and tax answers? Our experts can help you confirm the correct rates, sourcing rules, and exemptions before you file.

Common sales tax exemptions in Arkansas

Arkansas provides several excise tax exemptions that can significantly reduce tax liability for qualifying industries, manufacturers, and specialized operations. Many of these exemptions focus on promoting economic development, reducing the tax burden on essential production inputs, and supporting local businesses.

Common exemptions include:

• Admissions to fairs, rodeos, and athletic events
• Agricultural purchases
• Purchases made by nonprofits
• Automobile detail services

Manufacturers also benefit from exemptions on machinery and equipment used directly in producing articles of commerce, as well as replacement parts and services essential to maintaining production lines.

In recent years, Arkansas has expanded its incentive structure through targeted exemptions addressing high-impact industries. House Bill 1444 created a broad excise tax exemption for qualifying data centers. To qualify, a data center must meet specific investment thresholds (often in the hundreds of millions) and use the facility primarily for data processing, storage, or distribution. If requirements are met, eligible data centers receive exemptions on sales and use tax for electricity, certain machinery and equipment, building materials, and other operational costs.

Do You Have Sales Tax Nexus in Arkansas? 

Sales tax nexus refers to the connection or link a business has with a state. This connection obligates a company to collect and remit sales tax on transactions made within or to customers in Arkansas.  

There are two types of sales tax nexus: physical and economic.

Physical sales tax nexus in Arkansas 

According to Arkansas law, all vendors located and operating in Arkansas selling property or services subject to sales tax automatically have physical nexus. In general, all sales of tangible personal property are taxable in Arkansas, as well as many services. 

Economic sales tax nexus in Arkansas 

Economic nexus in Arkansas is triggered when a business exceeds $100,000 in gross sales or 200 transactions in the current or previous year.

Are Marketplace Facilitators Required to Collect and Remit Sales Tax in Arkansas? 

As of July 1, 2019, Arkansas Legislature requires marketplace facilitators to collect and remit Arkansas sales and use tax for products sold through their platform. If you only sell through a marketplace facilitator, you have no Arkansas sales tax liability. However, if you sell through other channels, you will need to evaluate whether you need a sales tax permit for those sales.

What platforms are marketplace facilitators? 

• Amazon    
• eBay    
• Etsy    
• Walmart (online)    

Not sure what defines a marketplace facilitator? In short, marketplace facilitators are companies that provide a platform or service for third-party sellers (you) to sell their products or services to customers. The facilitator collects payment from the customer, processes the transaction, and may also manage shipping and returns. 

Filing Arkansas Sales Tax 

Registration

If your business has nexus in Arkansas, your first step is to register for a sales and use tax permit through the Arkansas Taxpayer Access Point (ATAP).

• In-state businesses pay a $50 permit fee.
• Remote sellers do not pay a fee.

Accurate sales tax collection

Like most states, Arkansas levies sales tax at both the state and local level. Local levies are apt to change frequently due to annexations or voter approval, so your sales tax matrix must stay updated.

State + local rates in Arkansas can range from 7% to 12.625%.

The Arkansas Department of Finance & Administration publishes quarterly local rates as well as upcoming changes for your convenience.

How to file

You can file Arkansas sales tax returns one of three ways: 

1. Online – the fastest, easiest, and preferred method is to file on ATAP.
2. Paper Form – call 501-682-7104 to request blank Arkansas Excise Tax Returns (ET-1).
3. Let us file for you! – if you need help managing Arkansas sales tax complexity, we’ve got you covered. Our team delivers end-to-end sales tax solutions designed for all sellers, e-commerce brands, and service providers. See our transparent plans!

When are sales tax returns due in Arkansas? 

When you register for an Arkansas sales tax permit, your business is assigned a filing frequency based on your Arkansas sales volume. The more sales, the more often you need to file. Most remote sellers need to file monthly, but there are also quarterly and annual filing frequencies.  

Arkansas returns are due the 20th of the month (unless the 20th falls on a weekend or holiday, in which case due dates are pushed to the next business day).