How taxes work in Arkansas
Sales tax. Arkansas charges a 6.5% statewide sales tax, and counties, cities and special districts add their own on top — which is why the average combined rate of about 9.44% is the number that matters at the till. Groceries are taxed at a much-reduced state rate of 0.125%, plus local taxes.
Property tax. At an average effective rate of about 0.62%, a $350,000 home in Arkansas carries roughly $2,170 a year in property tax before exemptions. That is near the middle of US states. Local assessors set actual bills, so verify with the county for any specific property.
Income tax. Progressive, top rate around 3.9% after recent cuts. If you are self-employed in Arkansas, you still owe federal self-employment tax plus quarterly state estimates where applicable.
Sales tax · average combined
Property tax · average effective
Chart: DailyFinance.tools · Rates are reviewed averages from our state tax dataset — your exact local rate may differ.
How Arkansas compares with similar states
The states closest to Arkansas on average combined sales tax. Property tax is the average effective rate; income tax shows the structure, not a single rate.
| State | Combined sales tax | Property tax | Income tax |
|---|---|---|---|
| Arkansas (this page) | 9.44% | 0.62% | Progressive |
| Louisiana | 9.56% | 0.55% | Flat |
| Tennessee | 9.55% | 0.67% | None |
| Washington | 9.38% | 0.87% | None |
| Alabama | 9.29% | 0.42% | Progressive |
| All-state average (51 entries) | 6.61% | 1.04% | — |
What this means for your money in Arkansas
Property tax in Arkansas sits near the middle nationally: an average effective rate of 0.62% (rank 39 of 51; all-state average 1.04%). On a $400,000 home that is about $2,480 a year, or $206.67 a month through escrow. No single tax dominates the picture here — the state's overall position is the sum of three middling taxes rather than one extreme one.
Read together: Arkansas combines an average combined sales tax of 9.44% (rank 3 of 51), an average effective property tax of 0.62% (rank 39 of 51) and progressive income tax brackets. A household comparing states should compare all three against its own pattern — a high earner who rents weighs the income tax most; a homeowner on a fixed income weighs the property tax most.
Major cities in Arkansas
Little Rock, Fayetteville, Fort Smith, Springdale, Jonesboro. Combined sales-tax rates differ between these cities — sometimes by more than a full percentage point inside the same state — because county and city layers stack on the state base. The Arkansas sales tax guide breaks down the calculation and links the calculator where you can enter your exact local rate.
Calculators for Arkansas residents
- Arkansas Sales Tax Guide & Examples — what you actually pay, with worked amounts.
- Sales Tax & VAT Calculator — add or extract tax at any rate, including your exact Arkansas local rate.
- Mortgage Calculator — include Arkansas property tax in the monthly payment.
- Property Tax Calculator — estimate a specific property's bill.
- Self-Employment Tax Calculator — federal SE tax for Arkansas freelancers.