Arkansas has one general state rate and a patchwork of city and county add-ons. Since 1 January 2026 the state itself no longer taxes food and food ingredients, but the local taxes on groceries were not repealed, so a grocery bill is not tax-free.
This guide sets out the state rate, how the food change works, how the local rate is found, what the Department of Finance and Administration (DFA) says is taxable, the $2,500 local cap, use tax on out-of-state purchases and the 2026 sales tax holiday, using DFA, Arkansas Senate and DFA legislative-summary pages read on 2 November 2026. The rate comparisons are our own arithmetic from DFA's October to December 2026 rate table.
DFA's state sales and use tax rates page lists the State Sales and Use Tax at 6.500%, effective 07/01/2013. DFA's use tax FAQ states that the state use tax rate is the same as the sales tax rate, 6.500%, and DFA's consumer use tax page also dates that rate from 1 July 2013. So the general state rate on taxable retail sales and on taxable out-of-state purchases is 6.5%.
On top of that, you pay city and county sales tax. DFA also lists separate state taxes on specific things (for example mixed drinks and short-term rentals) on its state rates page; this guide covers the general rate and the food change.
DFA's state tax rate-change page lists the State Reduced Food Tax at 0.000%, effective 01/01/2026. DFA's summary of 2025 law changes says Act 1008 provides a state sales and use tax exemption for sales of food and food ingredients, effective 1 January 2026, and that these sales continue to be subject to sales and use taxes levied by municipalities and counties.
The Arkansas Senate's January 2026 summary describes the same act as the removal of the 0.125% sales tax on groceries and says local sales taxes will remain unchanged. In plain terms: the state cut the last 0.125% it charged on groceries, and your city and county tax on food continues. The worked table below shows the local tax on $1,000 of food.
We do not state here how DFA defines "food and food ingredients" or what counts as prepared food; check DFA's rules before assuming a particular item qualifies.
DFA's FAQ says local sales tax is based on where the merchandise is delivered: if the buyer does not take possession at the store, the tax is based on the delivery address. DFA provides a free local tax rate lookup by Arkansas address, and says it mails city and county rate changes to registered taxpayers quarterly. DFA's local rate pages list changes by quarter (January, April, July and October) and publish one table per quarter; the latest table DFA lists is October to December 2026. DFA's local rate changes page already lists January 2027 changes, such as a decrease to 1.000% for Harrison and for Boone County, a decrease to 1.625% for Lafayette County, and several annexations (Siloam Springs, Gentry, Gravette, Pea Ridge, Manila, Prairie Grove and others). None of those entries is one of the four cities in the example below, and a January to March 2027 table was not yet listed when we read DFA's page on 2 November 2026.
In that table each city line shows a city rate, the county and the county rate, and a total. Among the city lines that show a single county total, our reading of the table is that the totals run from 1.000% (Roe) to 6.125% (Gillham), so combined with the 6.5% state rate a purchase inside those cities can be taxed from 7.5% to 12.625%. The table's county list also shows county rates of 0.000% (Monroe and Saline counties), so a purchase outside any city in those counties carries no city tax and, where no other local tax applies, would be taxed at the 6.5% state rate alone. We did not tabulate the cities that the table lists in two or more counties as "See Below" and "Varies". For example, Alexander, in Pulaski and Saline counties, shows "See Below" and "Varies" instead of one total. Treat these as table readings, not a promise for your address: use DFA's lookup for the exact figure.
This table is our own calculation from the October to December 2026 DFA city and county rate table and the 6.5% state rate. It assumes the general state rate on ordinary goods, no cap and no exemption, and shows food as local tax only because the state food rate is 0%.
| City (rates in the DFA table) | City + county rate | Combined with 6.5% state | Tax on $1,000 of general goods | Tax on $1,000 of food (local only) |
|---|---|---|---|---|
| Little Rock | 2.125% | 8.625% | $86.25 | $21.25 |
| North Little Rock | 3.000% | 9.500% | $95.00 | $30.00 |
| Fayetteville | 3.250% | 9.750% | $97.50 | $32.50 |
| Greenland | 5.750% | 12.250% | $122.50 | $57.50 |
The same $1,000 of ordinary goods carries $86.25 of tax in Little Rock and $122.50 in Greenland, a difference of $36.25, entirely from the local rate. Always check the current quarter's table before relying on these numbers.
From DFA's FAQ: the sale of used tangible personal property is taxable except as noted in Arkansas Gross Receipts Tax Rules GR-18 and GR-50; freight, shipping and transportation charges are part of the taxable price if the goods shipped are taxable (but not if a common carrier bills the purchaser directly); repair of farm machinery and equipment, including parts and labor, is taxable; and sales of equipment and supplies to doctor and dentist offices are taxable. Sales to federal employees are exempt only when paid by the U.S. Government with a Treasury Department warrant.
This list is only what the FAQ addresses. It is not a full list of exemptions, and we have not read DFA's position on clothing, medicine or services here.
DFA says local tax caps on single transactions no longer apply, except for motor vehicles licensed for highway use, aircraft, watercraft and manufactured housing. For watercraft, DFA says sellers collect city and county tax on a maximum of $2,500 while state sales tax continues to apply to the total invoice amount. DFA's summary of 2025 law changes says Act 1013 applies the $2,500 local tax cap to the aggregate of all periodic payments on the sale or lease of a motor vehicle. Arkansas Gross Receipts Rule GR-91 states the cap as the first $2,500 of the sales price of a single motor vehicle, aircraft, watercraft, modular home, manufactured home or mobile home (we read the rule as reproduced by Cornell's Legal Information Institute, not on DFA's own site). For the vehicle rules in detail, see our vehicle sales tax guide.
Businesses get a different benefit: DFA says they can claim a rebate or refund of the additional local sales tax paid to suppliers on business purchases where the invoice exceeds $2,500. Requests are due no later than one year from the purchase or payment of the tax, whichever is later. Businesses without an active permit use form ET-179A.
DFA says you owe use tax if you bought items outside Arkansas that would be taxable in Arkansas, use, store or consume them in Arkansas, and did not pay Arkansas sales tax or an equivalent amount to another state. You also owe the city and county tax for where the items are first delivered in Arkansas. If you paid sales tax to another state, you may get a reduction for it, but if it was less than the Arkansas rate you pay the difference. DFA's FAQ marks the equivalent-tax and reduction rules as excluding motor vehicles, so check DFA before applying them to a vehicle purchase.
Individuals report use tax monthly if the amount is over $100 per month, quarterly if it is $25 to $100 per month, and annually if it is under $25 per month, using the Consumer Use Tax Report (form CU-1). DFA says it shares sales information with other states and bills residents for unpaid use tax plus penalty and interest.
DFA's page says the 2026 sales tax holiday ran from 12:01 a.m. on Saturday 1 August 2026 to 11:59 p.m. on Sunday 2 August 2026, covering certain electronic devices, school supplies, school art supplies, school instructional materials and clothing free of state and local sales or use tax. That holiday is over. We have not read a source saying the dates are fixed in future years, so check DFA before planning around a 2027 holiday.