Quick Answer: How Is Sales Tax Calculated In Arkansas?

What’s the formula for sales tax?

The formula for calculating the sales tax on a good or service is: selling price x sales tax rate, and when calculating the total cost of a purchase, the formula is: total sale amount = selling price + sales tax..

What is exempt from sales tax in Arkansas?

Tax-exempt goods Some goods are exempt from sales tax under Arkansas law. Examples include prescription drugs, purchases made with food stamps, and some farming equipment.

Can you make payments on sales tax in Arkansas?

Arkansas has a payment plan for Arkansas state sales tax and businesses can choose to pay monthly or quarterly.

Why is Arkansas sales tax so high?

Taxes and spending: Arkansas leads country in local sales tax rates while state starves services to cater to rich and special interests. … Among those deprived of general revenue produced by that tax — in addition to schools, public safety and health care — are cities and counties, which receive state “turnback” money.

How much are payroll taxes in Arkansas?

Arkansas State Payroll Taxes The 2020 tax rates range from 2% on the low end to 6.6% on the high end. Employees who make more than $79,300 will hit the highest tax bracket. There are no local taxes, so all of your employees will pay the same state income tax no matter where they live.

How do you figure Arkansas sales tax?

The sales tax is calculated on the total amount of the sale (less trade-in value). This holds true for private car sales or vehicles purchased from car dealers in Arkansas. The percentage of sales tax charged is generally 6 percent of the total sales price.

What is the tax percentage in Arkansas?

Personal Income Tax Rates (Effective January 1, 2020)Income greater than $79,300$0-$4,0002.0%$4,001 – $8,0004.0%$8,001 – $79,3005.9%$79,301 and above6.6%

What is the sales tax on a vehicle in Arkansas?

6.5%Under state law, the tax applies to any used passenger vehicle costing more than $4,000. The state sales tax of 6.5% plus any local sales taxes is due on the whole amount of a car costing more than $4,000. A car costing $4,000 or less is exempt.

Is Arkansas a high tax state?

Arkansas is tied with Tennessee for having the highest average state and local sales tax rate at 9.47 percent, according to a midyear 2019 state and local sales tax report by the Tax Foundation. … almost all of them, 83 percent, take place during some time other than the general or primary election.