Car Sales Tax in Arkansas
The average state and county combined sales tax on car purchases in Arkansas is 9.133%.
Written by Melanie Johnson
Reviewed by Jessica Barrett
A state tax rate of 6.5% applies to all car sales in Arkansas, but your total tax rate will depend on county and local taxes, which may add up to an additional 5%. The average total car sales tax in Arkansas is 9.133%.
Buying a car isn’t just about the sticker price. One of the most important additional costs to consider when purchasing a car is sales tax, which varies depending on where you buy your car.
The sales tax on car purchases varies from state to state, and Arkansas has some of the highest car sales tax rates in the country.
Car insurance
comparison app Jerry
has made a handy guide to car sales tax in Arkansas, so you can estimate how much you’ll have to pay when you buy your next ride—and lower your Arkansas car insurance costs
at the same time!Let’s dig into car sales tax in Arkansas.
How much is the car sales tax rate in Arkansas?
Arkansas ranks tenth among states with the highest car sales tax at 6.5%. This rate applies to all car purchases—whether you buy new or used. You’ll also need to account for county and local sales tax, which will be added to the base 6.5%.
The highest sales tax rate for car purchases is in Lincoln County, where car buyers are subject to an 11.5% total sales tax. The Arkansas county with the lowest sales tax is Carroll County, and the city with the lowest is Beaver, with a combined tax rate of 7%. The average for Arkansas is 9.133%.
How are car trade-ins taxed in Arkansas?
When you purchase a car, most dealers will allow you to
trade in your old vehicle
and apply the credit toward your new purchase. In Arkansas, sales tax doesn’t apply to trade-in value. This saves you money. For example, let’s say you’re buying a
Toyota Corolla
worth $20,175 in Little Rock, and you’re trading in your old Toyota Avalon
for a $2,500 credit. You’ll only have to pay Pulaski County’s 8.625% combined state and local sales tax on $17,675 of the purchase price. It’s worth noting that dealer rebates and incentives are not exempt from sales tax. The taxable price of your vehicle is the price before dealer incentives. So if you’re getting a rebate, you’ll still pay sales tax on the full price of the car.
How to calculate sales tax on a car in Arkansas
You can calculate the total car sales tax in your area by visiting the Arkansas Department of Finance and Administration (DFA)
website
and clicking on “calculate state sales tax”. Keep in mind that this estimate will not include title fees, registration fees, or processing fees.Key Takeaway Add Arkansas’ car sales tax of 6.5% to your specific county and city’s sales tax rate to get the total sales tax in your area.
Exemptions from Arkansas car sales tax
Most car purchases in Arkansas are subject to sales tax, but there are a few exceptions. To apply for an exemption from car sales tax, you may complete a claim form on the DFA
Tax Credits/Special Refunds
page.You may qualify for exemption if:
- You are adisabled veteranwho purchased the vehicle through financial assistance from the Department of Veterans Affairs
- You purchased the vehicle to transport the elderly, disabled, or mentally ill under a Department of Human Services program or nonprofit organization
- The purchase price of the vehicle was $4,000 or less
How to estimate Arkansas tax, title, and registration fees
Ready to pay the sales tax and take your hot new ride for a spin? Not so fast! Sales tax isn’t the only additional cost to keep in mind when buying a car in Arkansas.
You’ll also need to consider title and registration fees, documentation fees charged by most dealerships, as well as the cost to transfer your license plates.
Here’s how the additional costs of car purchases in Arkansas break down:
Cost | Average cost |
|---|---|
Sales tax | 9.133% |
Registration fee | $17 to $30 |
Title fee | $10 |
Plate transfer | $1 |
Documentation fee | up to $129 |
MORE: Is car insurance tax deductible?
How to find affordable car insurance in Arkansas
Once you’ve paid all of the applicable payments and fees, there’s still one more expense to consider: car insurance for your new whip! Arkansas has higher car insurance rates than many states, but not to fear! You can find the lowest rates using the
Jerry
app. Using Jerry is simple—just download our
trusted insurance comparison app
for free, enter your information, and sit back and relax while Jerry searches for personalized quotes from 50+ top insurance companies in seconds. Jerry users save an average of $887 per year on car insurance!“I was paying $350 a month for my new car. With
Jerry
, I set up a new policy in under 30 minutes that will save me over $1,000 a year!” —Mariah K.How much is sales tax on a used car in Arkansas?
The sales tax on a used car in Arkansas is the same as on a new car (unless the car is priced below $4,000)—a statewide base rate of 6.5% plus your local or county tax rate.
Do all car purchases come with a sales tax?
No, there are exceptions. For example, vehicles that were purchased for $4,000 or less are exempt from state sales tax.
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