Car Sales Tax in Arkansas
A state tax rate of 6.5% applies to all car sales in Arkansas, but your total tax rate will depend on county and local taxes, which may add up to an additional 5%.
Written by Melanie Johnson
Reviewed by Jessica Barrett
A state tax rate of 6.5% applies to all car sales in
Arkansas
, but your total tax rate will depend on county and local taxes, which may add up to an additional 5%. The average total car sales tax in Arkansas is 9.133%.- Arkansans pay between 7% and 11.5% in car sales tax on all vehicle sales depending on their county and city of residence.
- The value of a trade-in vehicle is exempt from Arkansas car sales tax.
- Arkansans pay between 7% and 11.5% in car sales tax on all vehicle sales depending on their county and city of residence.
- The value of a trade-in vehicle is exempt from Arkansas car sales tax.
Arkansas car sales tax rate
The overall average car sales tax rate in the State of Arkansas is 9.133% for all car purchases—new vehicles and used. This average includes:
- The state car sales tax (use tax of 6.5%)
- The average of county and local sales taxes added in different parts of the state
Taxpayers in Lincoln County have the highest sales tax rate for car purchases, while the lowest is in Carroll County. Be sure to check your county’s local tax rates to see what you’ll be charged when registering your vehicle in Arkansas.
MORE: Car loan in Arkansas 2022
Arkansas tax on trade-ins
In Arkansas, sales tax doesn’t apply to trade-in value.
For example:
- New car purchase price: $20,175
- Vehicle trade-in value: $2,500
- Taxable purchase amount: $17,675
If you complete this transaction in Little Rock, you’ll only pay Pulaski County’s 8.625% combined state and local sales tax on the taxable purchase amount, rather than the full sale price.
Keep in mind: Dealer rebates and incentives do not qualify for tax exemption. The taxable price of your vehicle is the price before dealer incentives. So if you’re getting a rebate, you’ll still pay sales tax on the full price of the car.
How to calculate sales tax on a car in Arkansas
You can calculate the total car sales tax in your area by visiting the
Arkansas Department of Finance and Administration (DFA) website
and clicking on “calculate state sales tax”. Keep in mind that this estimate will not include:
Key Takeaway: Add Arkansas’ car sales tax of 6.5% to your specific county and city’s sales tax rate to get the total sales tax in your area.
Exemptions from Arkansas sales tax
Most car purchases in Arkansas are subject to sales tax, but there are a few exceptions. To apply for an exemption from car sales tax, you may complete a claim form on the
DFA Tax Credits/Special Refunds page
.You may qualify for exemption if:
- You are a disabled veteran who purchased the vehicle through financial assistance from the Department of Veterans Affairs
- You purchased the vehicle to transport the elderly, disabled, or mentally ill under a Department of Human Services program or nonprofit organization
- The purchase price of the vehicle was $4,000 or less
MORE: Arkansas bill of sale
How to estimate Arkansas tax, title, and registration fees
Besides sales tax, you’ll also pay the following when buying a car in Arkansas:
- Title and motor vehicle registration fees
- Documentation fees charged by most dealerships
- License plate transfer fees as well as the cost to transfer your license plates
Average cost of all DMV fees: $32.
Here’s how the additional costs of car purchases in Arkansas break down:
Cost | Average cost |
|---|---|
Sales tax | 9.133% |
Registration fee | $17 to $30 |
Title fee | $10 |
Plate transfer | $1 |
Documentation fee | up to $129 |
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How much is sales tax on a used car in Arkansas?
The sales tax on a used vehicle in Arkansas is the same as on a new car (unless the car is priced below $4,000)—a statewide base rate of 6.5% plus your local or county tax rate.
Do all purchases come with a sales tax?
No, there are exceptions. For example, vehicles that were purchased for $4,000 or less are exempt from state sales tax.
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