How much is sales tax on a new vehicle in Arkansas?

Arkansas charges a 6.5% state sales tax on new vehicles, plus any applicable city and county sales taxes based on where you register the car. In practice, most buyers see a combined rate in roughly the 7%–10% range, though your exact total depends on your local jurisdiction and how trade-ins and discounts affect the taxable price.

What the state charges

The core tax on a new vehicle in Arkansas is the state gross receipts (sales) tax of 6.5%. This is collected by the Arkansas Department of Finance and Administration (DFA) when you title and register the vehicle, generally within 30 days of purchase. If you buy out of state, Arkansas use tax at the same rates applies when you register the vehicle in Arkansas.

Local city and county taxes

Beyond the 6.5% state rate, Arkansas also applies local sales taxes set by your city and county. For vehicle purchases, DFA typically bases local tax on the city and county listed on your registration address (not the dealer’s location). These local add-ons vary widely across Arkansas and can meaningfully change your total. Some jurisdictions also place “single-transaction” caps on the local portion, which can limit how much local tax you pay on big-ticket items like cars; these caps and definitions vary by locality.

Typical combined rates and what to expect

Because local rates differ, the total sales tax on a new vehicle in Arkansas usually lands somewhere between about 7% and 10%. Areas with higher local rates may be above this range, while areas with lower or capped local taxes may be below it. The definitive rate for your purchase comes from DFA’s calculation at registration.

What counts toward the taxable price

The amount you pay tax on is not always the sticker price. Several common items can increase or decrease the taxable base for your new car purchase.

• Trade-in credit: The value of a vehicle you trade in to the dealer reduces the taxable price dollar-for-dollar.
• Dealer discounts: Price reductions from the dealer generally lower the taxable amount.
• Manufacturer rebates: These are typically taxable in Arkansas; the tax is calculated before the rebate is applied.
• Doc/processing fees: Dealer documentation and similar mandatory fees are usually taxable.
• Non-taxed charges: Title, license/registration fees, and certain government fees are not subject to sales tax.
• Add-ons and warranties: Accessories, extended warranties, and service contracts may be taxable; treatment can vary by product, so ask the dealer and verify with DFA.

When you negotiate your deal, confirm how each line item is treated so you understand exactly what portion will be taxed at state and local rates.

How to estimate your tax before you buy

You can build a solid estimate ahead of time by following a simple process and using official tools to verify local rates and rules in your city and county.

1. Start with your agreed vehicle price.
2. Subtract your trade-in value (if any) and any dealer discounts.
3. Add taxable fees or accessories (for example, doc fee or dealer-installed options) if they will be part of the taxable sale.
4. Apply the 6.5% state tax to the result.
5. Add your local city and county sales tax rates to the same taxable amount, noting any local single-transaction caps that may limit the local portion due.
6. Exclude non-taxed items like title and registration fees, which you’ll still pay but not as part of sales tax.

This approach won’t replace the final DFA calculation at registration, but it will put you very close and help you budget accurately.

Where to verify your exact rate

Because local taxes and caps are jurisdiction-specific and can change, it’s wise to confirm your precise total before you finalize a purchase or register your vehicle. Use the Arkansas DFA resources or contact your local revenue office.

• Arkansas DFA Motor Vehicle: https://www.dfa.arkansas.gov/motor-vehicle/
• Arkansas DFA Sales & Use Tax (local rate information and contacts): https://www.dfa.arkansas.gov/excise-tax/sales-and-use-tax/
• Local DFA Revenue Offices (for in-person assistance): https://www.dfa.arkansas.gov/office-locations/

If you’re near a jurisdictional boundary or have a unique purchase structure, verifying with DFA will ensure there are no surprises at registration.

Summary

Arkansas taxes new vehicles at a 6.5% state rate, plus your applicable city and county sales taxes as determined by your registration address. Most buyers pay a combined total near 7%–10%, though the exact amount varies with local rates and any local single-transaction caps. Your taxable price is reduced by trade-ins and dealer discounts, while manufacturer rebates are generally taxed. For an exact figure, confirm your local rates and any caps with the Arkansas DFA before you register your new vehicle.