Minimum Sales Rate Tax for 2024
| 6.50% | Column content | Column content | Column content | Column content | |
| 1.5% | Column content | Column content | Column content | Column content | |
| 1.0% | Column content | Column content | Column content | Column content | |
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| Scientific & Cultural Fac.(cd) | Column content | Column content | Column content | Column content | |
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| Minimum combined sales tax rate value | 9% | Column content | Column content | Column content | Column content |
| Special tax | Column content | Column content | Column content | Column content | |
| Economic sales nexus threshold | $100,000 | Column content | Column content | Column content | Column content |
| Transactions threshold | 200 | Column content | Column content | Column content | Column content |
| Sales tax return filing due date | 20th of the month following the reporting period. | Column content | Column content | Column content | Column content |
The base state sales tax rate in Arkansas is 6.5%, but since the city-specific tax rate is 1.5%, and the Pulaski County tax rate is 1%, the minimum sales tax rate for Little Rock is 9%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Looking for help calculating your sales tax? Contact us today to book a free consultation!
What is nexus?
In Little Rock, businesses must understand “nexus” to determine their tax obligations. Nexus refers to the connection that requires a business to collect sales tax in a state. This concept became even more important after the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., which allowed states to require sales tax collection based on economic activity rather than just a physical presence.
Specific sales tax rules for Little Rock
Most importantly, food and food ingredients are only subject to 0.125% sales tax.
Property taxes are imposed on real and personal property, with rates determined by multiplying the taxable value (20% of the appraised value) by the local millage rate.
Additional taxes include a 10% mixed drink tax on alcoholic beverages for hotels, motels, restaurants, and bars, along with a 5% tax for private clubs, both remitted monthly. Cigarettes are taxed at $1.15 per pack, and tobacco products at 68%. The city also levies a 2% Advertising and Promotion (A&P) tax on food and beverage sales, as well as a 4% tax on short-term lodging, including hotels and Airbnb rentals.
Finally, motor fuel is taxed at 24.5¢ per gallon for gasoline and 28.5¢ per gallon for diesel, with the revenue used to maintain roads and highways.
Services
Usually not taxed unless they are related to the sale of physical goods.
Goods
Most physical items are generally taxable, including appliances, cars, furniture, sporting goods, and electronics.
Clothing
Typically taxed.
Electronics
Taxable.
SaaS
Not taxable.
Digital Products
Taxable.
Software
Taxed if downloaded, but pre-installed software on devices is not as it is considered part of the product.
Freight/Shipping
Shipping costs are exempt from tax unless they are part of the item’s total price (and that item itself is taxable).
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