Arkansas is unusual because the state rate on a used vehicle depends on the sales price. Since 1 January 2022 there are three price bands, and a vehicle that costs a dollar more can mean a very different tax bill.
This guide sets out the bands, shows the jump at $10,000 with worked examples, explains the date-of-sale rule, and covers the 60-day registration deadline and late penalty, using the Arkansas Department of Finance and Administration's own pages read on 29 October 2026.
Act 1013, effective 1 January 2022, provides a reduced state sale and use tax rate of 3.5% on the sale of a used motor vehicle, trailer or semitrailer with a sales price of at least $4,000 but less than $10,000. If the total price of a used vehicle is less than $4,000, no tax is collected. If it is $10,000 or more, the vehicle is taxed at 6.5%. New vehicles are taxed at 6.5%.
| Vehicle and price | State rate |
|---|---|
| New vehicle | 6.5% |
| Used, under $4,000 | No tax |
| Used, $4,000 to $9,999 | 3.5% |
| Used, $10,000 or more | 6.5% |
Local tax will not be subject to the reduced state tax rate: the 3.5% band lowers only the state portion, so city and county taxes still apply in addition.
Because the whole price is taxed at the rate for its band, the tax jumps at $10,000. These figures are state tax only, our arithmetic on DFA's bands:
| Used vehicle price | State rate | State tax |
|---|---|---|
| $3,999 | No tax | $0 |
| $4,000 | 3.5% | $140 |
| $9,999 | 3.5% | $349.97 |
| $10,000 | 6.5% | $650 |
A buyer who pays $9,999 owes about $349.97 in state tax and one who pays $10,000 owes $650: a jump of about $300.03 for one more dollar. The reduced rate applies to the date of sale, not the date of registration, so a vehicle bought in December 2021 does not qualify for the rate that began on 1 January 2022 even if it was registered in January 2022.