Sales Tax Guide for Arkansas

If you run a business or sell online in Arkansas, understanding sales tax is essential. Even small mistakes can lead to costly penalties.

So, what does it take to stay compliant?

This sales tax guide for Arkansas covers everything you need to know about the state’s sales tax, including who must collect it, how to register, which exemptions apply, how to file returns, and proven tips to help keep your business compliant and prepared for audits.

Let’s get started.

Arkansas Sales Tax at a Glance

Sales Tax 101: The Basics for Arkansas Businesses

What Is Sales Tax?

Sales tax in Arkansas is a 6.5% statewide base on most taxable goods and some services, with city and county local taxes often added on top (combined rates vary by location).

Your Role as a Seller

You’re responsible for collecting sales tax from buyers and remitting it to the Arkansas Department of Finance and Administration.

Sales Tax vs. Use Tax

Sales tax is collected at the point of sale on taxable transactions where you have nexus.

Use tax is due when Arkansas sales tax wasn’t collected at the time of purchase, and the buyer then pays the tax direct to the state (commonly on remote sales or out-of-state purchases).

If your Arkansas business buys goods from an out-of-state vendor and no tax is charged, you’ll typically owe use tax on that purchase to the DFA.

Confused? doola’s experts will explain it better, schedule a demo!

Do You Need to Collect Arkansas Sales Tax?

If you’re selling to customers in Arkansas, here’s what qualifies you to collect sales tax:

Do you have nexus in Arkansas?

Physical presence (office, employee, warehouse, or inventory) OR economic nexus (over $100,000 in Arkansas sales or 200+ Arkansas transactions in the current or previous year) means you’re required to collect and remit sales tax.

Are you selling taxable goods or services?

Most tangible personal property is taxable. Common exempt items include certain groceries and prescription medicines.

Are your buyers in Arkansas? Do they owe sales tax?

If so (and you meet all the above criterion) you must collect Arkansas sales tax at checkout and remit it to the state.

E-commerce example: If you make $1,000 in taxable online sales to Little Rock customers and have nexus, you’d typically collect $65 in state tax (plus city/county amounts) on those sales.

E-Commerce Implications: What Online Sellers Should Watch Out For

• Using Amazon FBA? Inventory stored in Arkansas creates physical nexus.

• Selling through Shopify? You are responsible for collecting/filing Arkansas sales tax yourself.

• Selling through Amazon or Etsy? Marketplace facilitator laws apply. They usually collect/remit Arkansas sales tax for sales through their sites, but confirm within your dashboard.

What Happens If You Don’t Collect It: Penalties for Non-Compliance

If audited and found liable for uncollected taxes, Arkansas can assess back taxes, penalties (typically 10% late penalty), and interest. Not worth skipping compliance!

Nexus confusion? Let doola analyze it for you.

Arkansas Sales Tax Nexus Explained

Here are the main ways you can create Arkansas sales tax nexus:

Physical Nexus Triggers

• Having an office, store, or location in Arkansas

• Employees, agents, or representatives working in the state

• Holding inventory in a warehouse or via Amazon FBA

Economic Nexus

If you exceed $100,000 in Arkansas sales or 200 individual sales in Arkansas in the current or previous calendar year (includes both taxable and exempt sales), you must register, collect, and remit Arkansas sales tax.

Click-Through & Affiliate Nexus

Revenue from affiliates (like Arkansas-based bloggers) that generate sales can also establish nexus.

Marketplace Nexus (FBA & Platforms)

Marketplace facilitator laws mean that Amazon, Etsy, and Walmart.com will collect and remit state/local Arkansas tax for you on platform sales. However, remember, you are responsible for direct and non-platform sales.

Arkansas Sales Tax Rates and Sourcing for Online Sellers

Arkansas has a state rate of 6.5%, but cities and counties can tack on additional tax. Combined rates in 2025 can be as high as 12.625% in certain areas.

2025 Sales Tax Rate Range

• State rate: 6.5%

• Local rates: Vary, from 0% up to 6.125%

• Combined: 6.5% up to 12.625%

Find the specific local rate for any address with the Arkansas Sales Tax Lookup Tool.

Destination-Based Sourcing in Arkansas

Arkansas uses destination-based sourcing: tax is calculated based on where the buyer receives the product, not where you ship from. This means you must apply the combined state and local rates for the customer’s shipping address.

Marketplace Facilitator Rules

Since 2019, Arkansas makes marketplace platforms (Amazon, Etsy, Walmart, etc.) responsible for collecting/remitting sales tax on your behalf for Arkansas customers.

Double check your platform settings, and be aware you may still need to register for direct or multi-channel sales.

Need help setting all your rates across multiple platforms? doola’s got you covered.

What’s Taxable in Arkansas for E-Commerce Sellers?

Most tangible personal property is taxable in Arkansas. That includes:

• Physical products: Clothes, electronics, beauty, sporting goods, toys, etc.

• Digital products: Some downloadable digital goods are taxable.

• Certain services: Digital codes, software, extended warranties, installation services with taxable goods.

📌 doola’s Pro Tip for the Do’ers: Not all digital items are taxed; double-check with the DFA’s taxability list for up-to-date info.

What’s Exempt in Arkansas

Groceries, food ingredients (reduced tax rate), most prescription medicines, and select medical devices are either exempt or taxed at a lower rate.

Sales to nonprofits, government, or resale may also be exempt (if valid documentation is collected!)

Tax-Exempt Customers

• 501(c)(3) Nonprofits

• Government agencies

• Buyers with a reseller certificate

Important: Always collect and store digital exemption certificates. Without them you’ll owe the tax (even if the buyer was exempt) in an audit.

Registering for an Arkansas Seller’s Permit as an E-Commerce Seller

If you have nexus and make taxable sales to Arkansas customers, you need an Arkansas sales tax permit before you begin collecting sales tax.

How to Register

• Have your EIN, business name/address, and banking info ready

• Register online via Arkansas Taxpayer Access Point (ATAP)

• Or file paper Form AR-1R by mail

Application processing is usually quick (1-2 days online). There may be a $50 non-refundable permit fee for new applicants.

Out-of-State Sellers

Even if you have no physical presence in Arkansas, you must register if you cross the $100,000 or 200-transaction annual threshold for Arkansas customers (Shopify, Amazon FBA, Etsy, your own site, etc.).

FBA inventory stored in Arkansas is physical nexus, thus, registration required.

Arkansas Is NOT an SST Member

Unlike some states, Arkansas is not a streamlined sales tax (SST) member. You must register separately for Arkansas regardless of SST participation elsewhere.

Acquiring an Existing Arkansas Business?

If you’re buying a business already selling in Arkansas, update the DFA with your info and confirm if the seller’s permit needs to be closed or changed to your name.

Otherwise, you could inherit tax debt from the previous owner.

Need help? Register your Arkansas seller’s permit with doola.

Collecting Sales Tax: E-Commerce Best Practices

After you’re registered, make sure your e-commerce platform is set up to collect Arkansas sales tax on all sales shipped to state addresses (including accurate local rates).

Sales Tax by Platform

• Amazon, Etsy, Walmart.com: Arkansas sales tax is collected/remitted for you as a marketplace facilitator (but verify in your account, don’t assume).

• Shopify, WooCommerce, BigCommerce, etc.: You must enter the Arkansas state/local rates and be sure settings are up to date. The platform won’t collect tax by default.

• POS & mobile: Most leading mobile apps will use GPS to calculate the correct AR rate by buyer’s location.

Don’t miss a sale: If you forget to charge sales tax, the state will hold you liable for payment (not the customer).

Automate Where You Can

If you sell across multiple zip codes, automation is your friend. Platforms like doola, through our partnership with Hands Off Sales Tax, integrate with Shopify and others to auto-update Arkansas rates for every order.

Filing and Remitting Arkansas Sales Tax

Collected sales tax must be filed and paid to the DFA either monthly, quarterly, or annually. Your filing frequency depends on sales volume (most online sellers file monthly).

Reporting Sales

File returns using the ATAP portal or via paper. Returns require you to break out sales by jurisdiction, report total sales, and document exemptions.

Filing Schedule

• Monthly: Most e-commerce and higher-volume sellers

• Quarterly: If sales average $25 or less per month

• Annually: For very low volume filers (rare for e-commerce)

Returns are due on the 20th of the month following the reporting period. If the 20th is a holiday/weekend, it’s due on the next business day.

Zero Returns Are Required

If you had no Arkansas sales in a period, you must still file a “zero return.” Not filing can trigger administrative penalties (even if you owe nothing).

Closing or Selling Your Business? Always file a final return and formally notify the DFA so the account is closed in your name.

Special E-Commerce Considerations: Holidays and Shipping in Arkansas

Arkansas Sales Tax Holidays

Arkansas has an annual Sales Tax Holiday (usually the first weekend in August) for clothing, school supplies, and computers.

Mark your calendars if you sell these items, as sales may temporarily be tax-exempt!

Shipping and Handling Taxation

Arkansas considers shipping charges as part of the taxable sale if they are included in the sale price or if you do not offer an option for buyers to pick up in lieu of delivery.

In practice, most shipping is taxable if the underlying items are taxable.

If a single order mixes taxable and exempt items, prorate the shipping so only the portion attributed to taxable items is taxed.

📌 doola’s Pro Tip for the Do’ers: Let your platform auto-calculate shipping tax, or split allocations for accuracy.

Arkansas Excise Taxes for E-Commerce Sellers

Certain goods incur additional Arkansas excise taxes, over and above regular sales tax. These may apply if you sell:

• Tobacco Products: Arkansas taxes cigarettes at $1.15 per pack (plus additional equalization tax). Other tobacco and e-cigarettes are also taxed. Remote sellers must register/administer excise on direct to consumer sales.

• Motor Fuels: Gasoline is taxed at $0.245/gal and diesel at $0.285/gal as of July 2024.

• Alcoholic Beverages: Beer, wine, and spirits are each taxed with separate excise schemes. Shipping alcohol DTC to Arkansas has significant restrictions and registration obligations.

• Medical Marijuana: Subject to a 6.5% state sales tax + 4% special privilege tax.

Important: If your products could fall under Arkansas excise tax (vape, tobacco, alcohol, etc.), confirm what licenses and returns may be required.

Avoiding Penalties: E-Commerce Compliance Tips

• Late returns = 10% penalty and interest charges.

• Failure to pay or register can get your permit revoked or flagged as non-compliant for marketplace sales.

• No exemption certificate on file? You’ll owe the uncollected tax, even if the buyer was allowed an exemption!

Stay on top of deadlines, track documentation, and automate where possible. Minor mistakes can snowball fast with Arkansas sales tax enforcement.

How doola Helps E-Commerce Sellers With Arkansas Sales Tax

If navigating Arkansas sales tax feels overwhelming, you’re not alone.

From local rates and registration to filing, exemptions, and compliance, doola is here to simplify the process.

We take care of everything, from registering your seller’s permit to automating filings, managing exemption certificates, and ensuring ongoing compliance across multiple states.

Make Arkansas sales tax simple. Book a demo with doola today.