Calculate sales tax on car arkansas

How to Calculate Sales Tax on a Car in Arkansas

When purchasing a car in Arkansas, it's important to understand how the state's sales tax works. The sales tax rate for vehicle purchases in Arkansas is typically 6.5%, but this can vary based on local taxes and the specific county you are in. To help you get an estimate of how much you'll owe in sales tax, we've provided a simple sales tax calculator below.

Arkansas charges a statewide sales tax of 6.5% on car purchases, but depending on the county, additional local taxes may apply. For instance, cities like Little Rock have additional city-level sales tax rates. Therefore, the total tax rate you pay might be higher than the base rate.

Steps to Calculate Sales Tax on a Car in Arkansas

1. Find the Sale Price of the Car: The first step is to determine the purchase price of the vehicle. This is the price you will pay for the car before taxes and fees.
2. Check Local Tax Rates: The 6.5% statewide rate might be combined with local taxes, depending on where you live in Arkansas. Check with the Arkansas Department of Finance and Administration or your local county government to determine the exact rate for your area.
3. Apply the Sales Tax Rate: Multiply the car’s price by the applicable sales tax rate. For example, for a $20,000 car with a 6.5% tax rate, the tax would be $1,300.
4. Calculate Total Cost: Add the sales tax to the base price of the car to get the total amount you'll pay for the car, including tax.

Additional Information on Arkansas Car Sales Tax

Arkansas also has certain exemptions and credits, such as the ability to subtract trade-in value when calculating the sales tax on a new car purchase. For example, if you trade in your old car for $5,000, the sales tax will only be assessed on the difference between the new car’s price and the trade-in value.

If you're buying a used car, the same tax calculation applies, but the tax will be based on the price you pay for the vehicle, not its book value or appraisal. Be sure to check with your local DMV or a car dealership for any specific local tax rules that may affect your purchase.