1. What is Arkansas Vehicle Sales Tax?

Arkansas imposes a state sales tax of 6.5% on motor vehicle purchases, with additional local taxes that can bring the total rate up to 11.625%. This tax applies to both new and used vehicle purchases.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Vehicle Price — The purchase price of the vehicle before tax
• Sales Tax Rate — Combined state and local tax rate (6.5% to 11.625%)

3. Arkansas Tax Rate Information

Details: Arkansas has a base state tax rate of 6.5% on vehicle purchases. Local jurisdictions can add up to 5.125% additional tax, making the maximum possible combined rate 11.625%.

4. Using the Calculator

Tips: Enter the vehicle purchase price and your local tax rate. If unsure of your exact local rate, use 6.5% for state tax only or check with your local DMV for combined rates.

5. Frequently Asked Questions (FAQ)

Q1: Are there any vehicle tax exemptions in Arkansas?
A: Yes, certain vehicles like those purchased for farming or by non-profit organizations may qualify for exemptions.

Q2: Is the tax based on purchase price or market value?
A: In Arkansas, sales tax is calculated on the actual purchase price of the vehicle.

Q3: Do I pay tax when buying from a private seller?
A: Yes, you'll still owe Arkansas sales tax when registering the vehicle, regardless of whether you bought from a dealer or private party.

Q4: Are trade-in credits applied before tax?
A: Yes, Arkansas allows trade-in value to be deducted from the purchase price before calculating sales tax.

Q5: When is the tax due?
A: Sales tax is paid when you register the vehicle with the Arkansas Department of Finance and Administration.