Overview
Layered on top is a second Arkansas-specific rule: whatever city and county tax applies to your purchase only ever taxes the first $2,500 of the price - a cap that survived a 2008 law that killed local tax caps on almost everything else people buy. This calculator runs both rules together, plus the trade-in credit (and Arkansas's less-known private-sale credit) that reduces the taxable amount before either rule is applied.
01 - Official fees
Arkansas car sales tax fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| Used vehicle under $4,000 | 0% | state tax exempt entirely |
| Used vehicle $4,000–$9,999.99 | 3.5% | reduced state rate on the full taxable price |
| Used vehicle $10,000 or more | 6.5% | standard state rate |
| New vehicle, any price | 6.5% | no price-band exemption for new |
| Local city + county tax | combined local rate | applied only to the first $2,500 of taxable price |
| Dealer trade-in credit | price − trade-in | reduces the taxable base before either rate applies |
| Private-sale credit | price − sale proceeds | sell your old vehicle within 60 days before/after purchase |
Figures verified June 2026 against official sources (listed below). Always confirm the final amount with your local Arkansas DFA Revenue Office - counties can add small local fees.
03 - Same state, other costs
More Arkansas vehicle costs
04 - Common questions
Arkansas car sales tax FAQ
Do I really pay no sales tax buying a $3,999 used car in Arkansas?
You owe no state sales tax at that price - Act 1013 exempts any used vehicle sale under $4,000 entirely. You'll still pay local city/county tax on the $3,999 (capped, since it's already under $2,500... actually taxed on the full $3,999 since it's below the $2,500 cap ceiling), plus the title and registration fees.
What's the exact tax on a $10,000 used car versus a $9,999 one?
The $9,999 car falls just under the $10,000 threshold, so it's taxed at 3.5% state ($349.97). The $10,000 car crosses into the full 6.5% band ($650) - a single dollar of price difference costs roughly $300 more in state tax. Sellers and buyers both watch this line closely.
How does the $2,500 local tax cap actually work?
Your city and county combined rate (commonly 2%–3.5% depending on where you register) is multiplied by whichever is smaller: your taxable price or $2,500. A $50,000 truck and a $2,600 car pay identical local tax dollars - only the state's price-band tax keeps scaling with the full purchase.
Can I combine a trade-in with the used-vehicle price bands?
Yes. The trade-in (or a vehicle you sold privately within the 60-day window) comes off the price first, and the resulting taxable base is what gets tested against the $4,000 and $10,000 thresholds. Trading a $5,000 car against a $13,000 purchase drops your taxable base to $8,000 - landing you in the 3.5% band instead of 6.5%.
Is there a sales tax exemption for gifting a car to family in Arkansas?
A genuine gift - no money or trade changes hands - owes no sales tax at all, verified with a signed gift affidavit at the Revenue Office. If any payment is involved, even a token amount, the state taxes it as a sale under the normal price-band rules.
Do out-of-state vehicle purchases get taxed differently?
No - Arkansas residents titling a vehicle bought elsewhere pay the same state and local rules, minus a credit for sales tax legitimately paid to the other state. The used-vehicle price bands still apply based on the purchase price and whether the vehicle qualifies as used.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.