The Arkansas sales tax is 6.5% of the gross receipts from the sales of tangible personal property and certain selected services.
What is subject to sales tax in Arkansas?
Goods that are subject to sales tax in Arkansas include physical property, like furniture, home appliances, and motor vehicles. Arkansas charges a 1.5% reduced rate on the purchase of groceries. Some services in Arkansas are subject to sales tax.
What price do you have to pay sales tax in Arkansas?
The state Use Tax rate is the same as the Sales Tax rate, 6.500%. In addition, you are required to remit the city and/or county tax where the items are first delivered in Arkansas. A list of tax rates for cities and counties may be obtained from the Sales Tax and Use Tax Section or downloaded from our website.
What is exempt from sales tax in Arkansas?
Some goods are exempt from sales tax under Arkansas law. Examples include prescription drugs, purchases made with food stamps, and some farming equipment.
At what price do you not have to pay sales tax on a vehicle in Arkansas?
Arkansas Sales Tax on Car Purchases:
Arkansas collects a 6.5% state sales tax rate on the purchase of all vehicles which cost more than 4,000 dollars. Vehicles which were purchased at a cost of 4,000 dollars or less are not applicable for state sales tax, and will not be charged.
How much is sales tax on a house in Arkansas?
Property taxes in Arkansas are lower than in most of the rest of the country. The majority of the state’s counties have median annual property tax payments below $800. The statewide average effective property tax rate is 0.61%.
What taxes do you pay in Arkansas?
Arkansas collects income taxes from its residents at the following rates.
- 0.9% on the first $4,299 of taxable income.
- 2.4% on taxable income between $4,300 and $8,399.
- 3.4% on taxable income between $8,400 and $12,699.
- 4.4% on taxable income between $12,700 and $21,099.
- 6% on taxable income between $21,100 and $35,299.
What is the maximum amount you can pay for a car in Arkansas and not pay sales tax?
Cabot, Ark – Arkansas is looking to increase the threshold at which sales tax is collected on used cars. Currently there are no sales taxes collected on vehicles at $4,000 or less. HB1160 is looking to increase the threshold to $7,500 and then in two years increase it again to $10,000.
How do I avoid paying sales tax on a used car in Arkansas?
Subtract Value of Old Vehicle
Arkansas law gives you credit for such a sale as long as it was within 45 days before or after the purchase of the recently acquired vehicle. Bring the bill of sale for the old vehicle with you when paying tax so you receive this credit.
How do you figure Arkansas sales tax?
The sales tax is calculated on the total amount of the sale (less trade-in value). This holds true for private car sales or vehicles purchased from car dealers in Arkansas. The percentage of sales tax charged is generally 6 percent of the total sales price.
Do you have to pay sales tax on services in Arkansas?
Are services subject to sales tax in Arkansas? “Goods” refers to the sale of tangible personal property, which are generally taxable. “Services” refers to the sale of labor or a non-tangible benefit. In Arkansas, specified services are taxable.
Do you have to pay sales tax on a tractor in Arkansas?
Arkansas Code Annotated § 26-52-403 provides a sales and use tax exemption for the purchase of farm machinery and equipment. … The gross receipts or gross proceeds derived from the sale of new and used farm equipment and machinery is exempt from gross receipts tax.
Can you make payments on sales tax in Arkansas?
Arkansas has a payment plan for Arkansas state sales tax and businesses can choose to pay monthly or quarterly.
What is the penalty for paying sales tax late in Arkansas?
If you are filing your return late and owe the state money, you will generally have to pay a failure to file penalty of 5% of the tax owed for each month or part of a month you are late, up to a maximum of 35%.
Can you pay sales tax on a car with a credit card in Arkansas?
No. We do not currently accept credit cards. The Commission prefers licensees pay by check, but will accept cash with proper receipt provider. Do you license used motor vehicle dealers?