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Calculate arkansas vehicle sales tax

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How to Calculate Arkansas Vehicle Sales Tax

How to Calculate Arkansas Vehicle Sales Tax

When purchasing a vehicle in Arkansas, it's important to understand how the state's vehicle sales tax is calculated. Arkansas imposes a sales tax on the purchase price of vehicles, and the rate varies depending on the specific type of vehicle. Knowing the rate and being able to estimate the sales tax you’ll pay will help you prepare your finances for the purchase. Below is a helpful calculator to estimate your vehicle sales tax amount.

Estimate Your Arkansas Vehicle Sales Tax

How Arkansas Vehicle Sales Tax Works

The Arkansas vehicle sales tax rate is currently 6.5% for most vehicles. However, there are a few exceptions for specific types of vehicles or transactions. For example, if you're purchasing a used vehicle from a private seller, the tax will be calculated based on the purchase price you report or the NADA value, whichever is higher. New vehicle purchases from dealerships are taxed based on the negotiated purchase price.

Keep in mind that if you're trading in a vehicle, the value of your trade-in can reduce the total sales tax calculation. For example, if you're buying a car for $30,000 and trading in a vehicle worth $10,000, you’ll only pay tax on the $20,000 difference ($30,000 - $10,000). This can make a significant difference in your final tax amount.

Other Fees Associated with Vehicle Purchases in Arkansas

Aside from the sales tax, vehicle buyers in Arkansas may also be responsible for additional fees. These may include registration fees, title fees, and county fees, which vary depending on the location of your residence. It’s important to inquire with the Arkansas Department of Finance and Administration or your dealership to understand all the costs associated with purchasing a vehicle.