Question

What is the sales tax on a car in Arkansas?

The sales tax on a car in Arkansas is the amount you pay to the state and local government when buying a new or used vehicle; it's an add-on to the price of the car at the time of registration.

State and Local Sales Tax

Arkansas charges a 6.5% state sales tax on all car purchases. Cities and counties may add their own local tax, bringing the total average to about 9.13%. Both new and used cars priced over $4,000 are taxed at this rate.

Example Calculation

If you buy a car for $25,000 and trade in a vehicle worth $5,000, the taxable amount is $20,000.
$20,000 × 0.065 = $1,300 in sales tax.

Exemptions

You don’t have to pay sales tax if your vehicle costs less than $4,000. Certain exemptions also apply for disabled veterans and nonprofit organizations that transport elderly or disabled individuals.

County Rates

Lincoln County has the highest total car sales tax at 11.5%.
Carroll County has the lowest rate at 7%.

Payment

You pay the tax when registering your car. Payments can be made online or in person through the Arkansas Department of Finance and Administration (DFA).