Arkansas Vehicle Sales Tax: What You’ll Pay in 2025

Arkansas charges a 6.5% state sales/use tax on motor vehicles, plus applicable local city and county sales taxes based on your residence, so most buyers see a combined rate of roughly 7% to 11%. Tax is usually calculated on the purchase price after subtracting any trade‑in and dealer discounts; private sales are taxed the same way at registration.

How the rate is built

Arkansas vehicle tax is a combination of the statewide rate and the local taxes where you live (not the dealer’s location). When you title and register the vehicle with the Arkansas Department of Finance and Administration (DFA), the office calculates the total based on your home address.

• State sales/use tax: 6.5%
• Local sales taxes: city and county rates vary by location and are added on top of the 6.5% state rate
• Typical combined burden: about 7% to 11% depending on your city and county

Because local rates vary widely, your exact bill can differ even for the same vehicle price; checking your address-specific city and county rates will give the most precise estimate.

What counts toward the taxable price

Arkansas taxes the “net purchase price,” with specific rules on what may be subtracted before calculating tax. Understanding these rules helps you avoid overpaying and ensures you budget correctly.

• Trade‑in credit: The value of a vehicle traded in at the time of purchase reduces the taxable price.
• Dealer discounts: Price reductions from the dealer lower the taxable price.
• Manufacturer rebates: Generally treated as taxable in Arkansas when applied to the deal; they do not reduce the taxable price.
• Private‑party purchases: Tax is based on the purchase price stated (subject to DFA review for reasonable value) and paid at registration.
• Fees typically not taxed: Title, registration, and lien fees are separate from sales/use tax.
• Add‑ons and warranties: Accessories rolled into the sale and most service or extended warranty contracts are generally taxable.

If your deal includes multiple line items, ask the dealer to itemize which items are taxable and which are not, so the DFA can calculate correctly at registration.

When and where you pay

Arkansas collects the tax at titling/registration, including for private sales and most out‑of‑state purchases brought into Arkansas. You generally must register within the state’s required timeframe after purchase (commonly within 60 days), or penalties and interest can apply.

• Dealer purchases: Arkansas dealers often collect tax, but the DFA finalizes it at registration; out‑of‑state dealers may not collect Arkansas tax.
• Private sales: You pay the tax directly to the DFA when you title and register.
• New residents: If you paid a substantially similar sales/use or excise tax to another state on the same vehicle, Arkansas typically allows a credit up to the Arkansas tax due; bring proof of tax paid.

Bringing a bill of sale, financing contract, and any proof of out‑of‑state tax paid will help the DFA compute tax, credits, and fees accurately.

Examples

The following scenarios illustrate how Arkansas vehicle tax is commonly computed; actual results depend on your exact local rates and deal terms.

1. Buy a $30,000 car in a city/county with a combined 3% local rate (state 6.5% + local 3.0% = 9.5%). No trade‑in, no discounts. Tax ≈ $2,850.
2. Buy a $28,000 SUV with a $6,000 trade‑in and $500 dealer discount; manufacturer rebate of $1,000 applied. Local rate 2.5% (state 6.5% + local 2.5% = 9.0%). Taxable price = $28,000 − $6,000 − $500 = $21,500 (rebate does not reduce tax). Tax ≈ $1,935.

Your total will differ if your local rate is higher/lower or if additional taxable items (like accessories) are included in the sale price.

Exemptions and special cases

Arkansas allows limited exemptions and credits in specific situations. You should confirm eligibility and required documentation with the DFA before registering.

• Family transfers/gifts: Certain transfers between immediate family members may be exempt when no consideration is paid, subject to DFA rules and affidavits.
• Casualty loss replacement: Special treatment can apply when replacing a vehicle lost to theft or disaster; documentation is required.
• Out‑of‑state tax credit: Credit is usually allowed for similar tax legally paid to another state for the same vehicle.

Exemptions are narrowly defined and documentation‑heavy; check current DFA guidance to avoid delays or unexpected tax bills.

How to get your exact rate

Because local city and county rates change periodically, use your home address to look up the current combined rate before you buy. Dealers can provide an estimate, and the DFA or local revenue office can confirm the rate that will be used at registration.

Bottom line

Expect to pay Arkansas’s 6.5% state tax plus your local city and county taxes when you title and register a vehicle, for a typical combined rate of about 7% to 11%. The taxable amount is generally the purchase price minus any trade‑in and dealer discounts; manufacturer rebates usually do not reduce tax. Private sales are taxed the same as dealer sales at registration, and credits may apply for qualifying out‑of‑state tax already paid.

How to calculate Arkansas sales tax on vehicles?

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 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 to avoid Arkansas sales tax on new vehicles?

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.
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What is the current sales tax in Arkansas?

6.50 percent
Arkansas Tax Rates, Collections, and Burdens
Arkansas also has a 6.50 percent state sales tax rate and an average combined state and local sales tax rate of 9.45 percent.