Sales Tax Rules
Arkansas imposes a state sales tax rate of 6.5%, with a maximum combined rate (state plus local) of 11.625% when local taxes are added. Economic nexus is triggered at $100,000 in sales or 200 transactions — meaning out-of-state businesses that exceed this threshold must collect and remit Arkansas sales tax. SaaS and digital software products are generally exempt from sales tax in Arkansas. Groceries are exempt from state sales tax.
SaaS Tax Details
SaaS is generally exempt; software maintenance contracts are taxable.
Grocery Details
State tax on food and food ingredients was reduced to 0% in 2026 (local taxes apply).
What is the sales tax rate in Arkansas?
Arkansas's state sales tax rate is 6.5%. When local taxes are added, the maximum combined rate can reach 11.625%. The actual rate you pay depends on the county and city where the purchase is made.
What is the economic nexus threshold in Arkansas?
Arkansas requires out-of-state businesses to collect sales tax once they exceed $100,000 in sales or 200 transactions in a calendar year. Once nexus is established, the business must register, collect, and remit Arkansas sales tax.
Is SaaS taxable in Arkansas?
No. SaaS products are generally exempt from sales tax in Arkansas. SaaS is generally exempt; software maintenance contracts are taxable.
Are groceries taxed in Arkansas?
Groceries are generally exempt from sales tax in Arkansas. State tax on food and food ingredients was reduced to 0% in 2026 (local taxes apply).
Are digital goods taxable in Arkansas?
Yes. Arkansas taxes digital goods including downloaded software, music, movies, and e-books. Businesses selling digital products to Arkansas customers should collect sales tax.
Are clothing items exempt from sales tax in Arkansas?
Clothing is subject to sales tax in Arkansas at the standard state rate.
How often do I need to file sales tax in Arkansas?
Arkansas requires sales tax filing on a Monthly, Quarterly, or Annual. Online filing is available through the official Department of Revenue portal.
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Official Source
Arkansas Department of Revenue
Last verified: 2026-03-26 · Always confirm current rates with your tax advisor before filing.