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Receivables and sales tax in Arkansas

Arkansas nexus is $100,000 or 200 taxable transactions. It taxes digital goods but generally not SaaS, at 6.5% state plus city and county tax.

Jurisdiction
Arkansas
Reading time
1 min
Checked
October 12, 2026
Point at another state to compare its receivables.

Key figures

Arkansas receivables

2026, with sources

State sales tax rate
6.5%Since July 1, 2013; cities and counties add local tax.
Economic nexus
$100,000 or 200 transactionsCurrent or previous year; from July 1, 2019 (Act 822).
What counts toward nexus
Taxable salesTangible goods, taxable services, digital codes and specified digital products.
Specified digital products
TaxableTaxable, and counted toward the threshold.
SaaS
Generally not taxableNot among the taxable categories DFA lists for remote sellers.
Local rates
City and county add-ons

Dollars or transactions

Since July 1, 2019, under Act 822, a remote seller must collect Arkansas sales and use tax once its sales into Arkansas exceed $100,000 or 200 taxable transactions in the current or previous year. What counts is sales of tangible personal property, taxable services, digital codes and specified digital products delivered into Arkansas.

The 200-transaction test is the one that catches small consumer sellers. A shop selling $25 digital art packs — specified digital products — to 250 Arkansas buyers has $6,250 of Arkansas sales and nexus.

Digital goods yes, SaaS generally no

Arkansas taxes specified digital products — digital audio, video and books — and digital codes, but hosted software is not among the taxable categories. A pure B2B SaaS company therefore usually has no taxable Arkansas sales and never reaches the threshold; a company bundling downloadable content with its subscription should separate the two on the invoice.

State and local rates

The state rate is 6.5%, and cities and counties add their own; DFA publishes the local rates and lookup tools. Sellers file on the frequency DFA assigns. Unused customer credits eventually become unclaimed property, reported to the Auditor of State by November 1.

Deadlines

  1. Monthly, quarterly or annually, as assignedSales and use tax returnET-1

Common questions

Do I charge Arkansas sales tax on SaaS?

Generally no. Arkansas taxes tangible goods, specified digital products (e-books, digital music and video), digital codes and a list of services. Hosted software accessed remotely is not on that list. A company that sells downloadable media or digital codes is in a different position.

Does Arkansas still have a 200-transaction test?

Yes — Arkansas kept both tests: $100,000 in sales or 200 taxable transactions into Arkansas in the current or previous year. Only taxable transactions count, so a SaaS company with no taxable Arkansas sales doesn’t reach it.

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Sources

Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.

General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.

All state guides