Arkansas sales tax at a glance
| Type of tax | Sales and use tax |
|---|---|
| State rate | 6.5% |
| Local rates | Average 2.98%, highest 6.13% |
| Average combined rate | 9.48% |
| Groceries | No state tax since 2026; localThe state rate on food and food ingredients fell from 0.125% to 0% on 1 January 2026 (Act 1008). City and county taxes still apply to groceries. |
| Prescription drugs | ExemptPrescription drugs and insulin are exempt. Over-the-counter drugs are taxable even when a doctor recommends them. |
| Clothing | Taxed (August holiday, $100 cap)Clothing is taxed, except items under $100 (accessories under $50) during the August sales tax holiday (1 and 2 August in 2026). |
Local averages are population-weighted figures from the Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 (rates as of 1 July 2026). They are a guide, not the rate at any one address. For the exact rate where you buy, use the Arkansas DFA local tax lookup tools.
Worked examples
$180 of groceries at the average local rate
| Rate | 0% grocery + 2.98% local = 2.98% |
|---|---|
| Price before tax | $180.00 |
| Sales tax | $5.36 |
| Total | $185.36 |
Working: $180.00 × 2.98% = $5.36. With the state grocery tax gone, only the local rate applies to food. Before 2026 the state added another 0.125% on top.
Working back from a $109.48 total at the 9.48% average
| Rate | 6.5% state + 2.98% local = 9.48% |
|---|---|
| Price before tax | $100.00 |
| Sales tax | $9.48 |
| Total | $109.48 |
Working back: $109.48 ÷ 1.0948 = $100.00, so the tax was $9.48. At the average combined rate, a $109.48 total means a $100 price. Enter your own local rate for a real receipt.
Grocery tax gone at the state level
Arkansas had already cut the state tax on food and food ingredients to 0.125%. Under Act 1008, that last state portion was eliminated on 1 January 2026. City and county sales taxes still apply to groceries, so a grocery receipt in a city with a 3% local rate is taxed at 3%. Prepared food, candy and soft drinks are not covered by the food rate and are taxed at the full combined rate.
Local tax cap and the sales tax holiday
Arkansas limits local tax on large single purchases: city and county tax is charged only on the first $2,500 of a qualifying single transaction, and the excess can be claimed back as a rebate. The state's yearly sales tax holiday runs on the first weekend of August; in 2026 it was 1 and 2 August, covering clothing and footwear under $100 per item, and clothing accessories under $50. Use the Department of Finance and Administration lookup tools for the exact local rate at an address.
Arkansas vs. neighboring states
| State | State rate | Avg. combined | Groceries |
|---|---|---|---|
| Arkansas | 6.5% | 9.48% | No state tax since 2026; local |
| Missouri | 4.225% | 8.44% | 1.225% state + full local |
| Tennessee | 7% | 9.61% | 4% state + local |
| Mississippi | 7% | 7.06% | 5% (since July 2025) |
| Louisiana | 5% | 10.13% | No state tax; local may apply |
| Texas | 6.25% | 8.20% | Exempt |
| Oklahoma | 4.5% | 9.06% | No state tax; local applies |
Average combined rates are from the Tax Foundation, midyear 2026 report. See sales tax rates for every state for the full table.