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Arkansas car sales tax at a glance
| Arkansas | |
|---|---|
| Tax | sales and use tax (gross receipts tax) |
| State rate | 6.5% |
| Counties and cities add tax | Yes |
| Trade-in lowers the tax | Yes, tax is on the price minus the trade |
| Leases | Its own rule (see leasing below) |
Checked on the state's official sources on 2026-11-02. Rates change; the state's revenue department has the last word.
How to work out Arkansas sales tax on a car
Multiply the taxable price by the rate. In Arkansas the trade-in comes off first.
A $30,000 car with a $5,000 trade: $25,000 x 6.5% = $1,625 at the state rate, plus any county or city tax where you register the car.
New vehicles: 6.5% state. Used vehicles (Act 1013, from Jan 1, 2022): no state tax under $4,000, 3.5% from $4,000 to $9,999.99, 6.5% at $10,000 or more; the reduced rate does not reduce local tax. Each city/county tax is capped at $25 per 1% of local tax (i.e. applies to the first $2,500). Texarkana residents: DFA lists 7%.
Trade-ins
A trade-in (or a vehicle sold privately within 60 days before or after the purchase) reduces the taxable amount (DFA).
Leasing a car in Arkansas
Arkansas: the lessor chooses either to pay tax on the purchase price when the vehicle is registered (nothing on payments) or to register it exempt and collect sales tax plus the 1.5% long-term rental vehicle tax on the down payment and each periodic payment (Rule GR-20(D)). The calculator taxes the price at signing, the nearest fit; check the lease contract. The lease calculator uses Arkansas's method when you pick the state.
Dealer doc fees
No state cap found.