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Car sales tax · Arkansas

Arkansas car sales tax

Arkansas car sales tax is 6.5% of the price after trade-in, plus local tax capped at $25 for each 1% of local rate. Used cars are cheaper: 3.5% from $4,000 to $9,999 and no state tax under $4,000. A $28,000 new car with a $7,000 trade-in and 2% local tax owes $1,415.00.

Car Cost Calculator editorial teamUpdated 3 sources

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Arkansas car sales tax calculator

State rules in force November 2026

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Arkansas: sales taxEstimate

Tax due$1,415.005.05% of the price
Price after trade-in, with tax and fees$20,915.00before title and registration
Price$28,000.00
Rebate (still taxed)−$1,500.00
Trade-in (credited)−$7,000.00
Taxable amount$21,000.00
State sales tax (6.5% of $21,000)$1,365.00
Local tax (2%, capped at $25 per 1%)$50.00
Total tax$1,415.00

The trade-in credit saves $455.00 of tax.

How it is calculated. State tax = taxable price × 6.5% (used cars: 3.5% from $4,000 to $9,999, 0% under $4,000). Taxable price = total delivered price including any rebate, minus the trade-in. Each local tax is limited to $25 for each 1% of rate.

Arkansas car sales tax rates

Arkansas charges 6.5% state sales tax on the taxable price of a motor vehicle (7% for Texarkana residents), computed on the total delivered price, including any rebate, freight and extra equipment, less the trade-in.[1] Since Act 1013 of 2022, used vehicles that cost less than $10,000 pay a lower state rate:[3][2]

Arkansas state sales tax on vehicles by price (2026)
Vehicle and total priceState rateTax on the top of the range
New vehicle, any price6.5%–
Used, $10,000 or more6.5%$650
Used, $4,000 to $9,9993.5%$350
Used, $3,999 and belowNo state tax$0

The reduced rates apply only to the state tax; local tax is not reduced.[3]

Arkansas local sales tax on vehicles

Local taxes depend on where you live, and each local tax on a vehicle cannot exceed $25 for each 1% of tax.[1] In practice the local rate applies only to the first $2,500 of the price: a 2% local tax costs at most $50 on any car.

Arkansas car sales tax examples (state + local)
CaseTaxShare of price
$28,000 new car, $7,000 trade, 2% local$1,415.005.05%
$9,000 used car, 2% local$365.004.06%
$3,500 used car, 2% local$50.001.43%
$15,000 used car, 3% local$1,050.007.00%

Sold your old car yourself?Arkansas can credit the sale price of a vehicle you sell within 60 days before or after buying the new one, as if it were a trade-in.

Deadlines

Register and pay the tax within 60 days of purchase; after that, registration and sales tax penalties apply.[2]

Compare states on the car sales tax calculator, include the tax in a budget with the car affordability calculator, or see the yearly total on the cost of owning a car calculator.

Frequently asked questions

What is the sales tax on a used car in Arkansas?

No state tax under $4,000, 3.5% from $4,000 to $9,999, and 6.5% at $10,000 or more, plus local tax capped at $25 per 1%.

Does Arkansas tax the rebate on a car?

Yes. Tax is computed on the total delivered price including the rebate.

How long do I have to pay sales tax on a car in Arkansas?

60 days from the purchase date; penalties apply after that.

Sources

  1. Vehicle Tag Renewal / Titling (sales tax section) and DSMV FAQs and Recent Changes in the Law · Arkansas DFA, Office of Motor Vehicle, accessed November 14, 2026
  2. FAQs for the Office of Motor Vehicle · Arkansas Department of Finance and Administration, accessed November 14, 2026
  3. Recent changes in the law (Act 1013 of 2022, used vehicle sales tax) · Arkansas Department of Finance and Administration, accessed November 14, 2026