How much is the sales tax on a car in Arkansas?

It’s the statewide 6.5% sales and use tax plus any applicable city and county local taxes, calculated on the vehicle’s taxable price (generally the purchase price minus any trade‑in credit). You’ll pay this when you title and register the vehicle with the state, whether you buy from a dealer or a private seller.

What tax rate applies in Arkansas

Arkansas imposes a 6.5% state sales and use tax on motor vehicles. On top of that, most buyers also owe local sales/use tax set by the city and county where the vehicle will be garaged. The combined rate varies across the state and is collected by the Arkansas Department of Finance and Administration (DFA) at the time of registration. Private‑party purchases are taxed the same as dealer purchases.

What is the “taxable price” of the vehicle?

The tax isn’t always calculated on the sticker price. Arkansas uses a taxable price that reflects certain credits and add‑ons tied to your transaction.

• Purchase price: The starting point is the actual price you agree to pay for the vehicle.
• Trade‑in credit: If you trade in a vehicle you own, Arkansas generally lets you deduct the trade‑in value from the purchase price before tax.
• Discounts and rebates: Dealer discounts reduce the taxable price; manufacturer cash rebates are often taxable in many states, but terms can vary—confirm how your rebate is treated on your bill of sale.
• Fees: Title, registration, and lien recording fees are not subject to sales tax. Dealer documentation fees and add‑ons tied to the sale (e.g., accessories, certain service contracts) are typically taxable.
• Used‑vehicle relief: Arkansas law provides limited relief on some low‑priced used‑vehicle purchases; eligibility depends on sale price and current DFA rules, so verify whether your transaction qualifies.

In short, your taxable amount is usually the agreed vehicle price minus any trade‑in credit, plus most taxable add‑ons and dealer fees, excluding state registration and title fees.

How to find your exact combined tax rate

Your final rate equals the 6.5% state rate plus your city and county local rates based on where the vehicle will be garaged. Here’s how to look it up so you can calculate the exact tax before you buy.

1. Identify the address where the vehicle will be primarily garaged (your home address in Arkansas).
2. Check the current city and county sales/use tax rates for that address via the Arkansas DFA’s local sales and use tax resources or by contacting your county assessor or revenue office.
3. Add the local rate(s) to the 6.5% state rate to get your combined rate.
4. Multiply your combined rate by the vehicle’s taxable price to estimate the tax you’ll owe at registration.

Local rates can change during the year, so use the most recent DFA guidance or ask your revenue office to confirm the current percentages before you finalize the deal.

Example calculations

These scenarios show how to estimate your sales tax using typical situations. Replace the combined rate with your actual local rate for a precise figure.

• Dealer purchase with trade‑in: Price $28,000; trade‑in $6,000; taxable price $22,000. If your combined state+local rate is 9.0%, tax is $22,000 × 0.09 = $1,980.
• Private‑party purchase, no trade‑in: Price $12,500; taxable price $12,500. At an 8.5% combined rate, tax is $12,500 × 0.085 = $1,062.50.
• Used car at a low sale price: Price $3,800; check current DFA rules—if your purchase meets the criteria for Arkansas’s limited used‑vehicle tax relief, state and local tax may not apply. If it does not qualify and your combined rate is 8.75%, tax would be $3,800 × 0.0875 = $332.50.

These examples are illustrative. Your exact tax depends on your location, trade‑in, and whether any used‑vehicle relief applies to your transaction.

When and where you pay

You typically have 60 days from the purchase date to title, register, and pay sales/use tax with the Arkansas Office of Motor Vehicle. Late registration can trigger penalties and interest. Bring your bill of sale or dealer invoice, trade‑in documentation (if any), odometer statement, proof of insurance, and identification when you visit a DFA revenue office.

Key takeaways

– Base state rate: 6.5% on motor vehicles in Arkansas.
– Local city and county taxes usually apply, producing a combined rate commonly around 7.5%–10% depending on where you live.
– Taxable price is generally the vehicle price minus trade‑in credit, plus most taxable add‑ons.
– Private‑party and dealer purchases are taxed similarly at registration.
– Some low‑priced used‑vehicle purchases may qualify for relief; verify eligibility with DFA before you buy.

Summary

To find your car’s sales tax in Arkansas, determine the taxable price (price minus any trade‑in), then apply the 6.5% state rate plus your local city and county rates. Confirm your exact local percentages and any used‑vehicle relief with the Arkansas Department of Finance and Administration to get a precise, up‑to‑date figure before you register the vehicle.

How much is tax and title on a car in Arkansas?

The title fee is $10. And if there’s a lean the filing fee is an additional 50 dealership fees are another factor documentation fees average around $129.

How do I calculate sales tax manually?

Know the retail price and the sales tax percentage. Divide the sales tax percentage by 100 to get a decimal. Multiply the retail price by the decimal to calculate the sales tax amount.

How do you calculate sales tax on a vehicle in Arkansas?

When making a car purchase in Arkansas, you’ll pay 6.5% of the vehicle’s purchase price, whether you’re buying from a private seller or a car dealer. Arkansas tax law does not discriminate between the two. Unless you qualify for a sales tax exemption (discussed below), you have to pay tax on your vehicle purchase.

How to avoid paying sales tax on a used car in Arkansas?

Arkansas currently exempts sales tax on the sale of a new or used motor vehicle or trailer, if the total consideration for the sale of the new or used motor vehicle, trailer, or semitrailer is less than four thousand dollars ($4,000). Sales tax is calculated on the total amount of sale, less trade-in value.