Last checked Nov 10, 2026
Buying a car in Arkansas
The tax you will pay, whether your trade-in lowers it, what the dealer may charge for paperwork, and where to title and register. Taken from official Arkansas sources.
- State tax on vehicles
- 6.5%
- Trade-in lowers tax
- Yes
- Doc fee limit
- $129
- Deadline to title or register
- 60 days
details below
Sales tax on a car in Arkansas
Arkansas charges a state sales tax of 6.5% on vehicle purchases.
Local sales or use tax also applies and is determined by the location where the vehicle is registered.
A used vehicle priced under $4,000 is not taxed, and a used vehicle priced from $4,000 to under $10,000 is taxed at a reduced state rate of 3.5%; local tax is not reduced. The buyer pays the tax when registering the vehicle, not to the dealer.
Does a trade-in lower the tax?
Tax is due on the difference between the price and the trade-in credit. A similar credit applies when the buyer sells a used vehicle privately within 60 days before or after the purchase.
Example, state tax only. On a $30,000 car with a $10,000 trade-in, the taxable amount is $20,000, so the state tax is about $1,300. Without the trade-in it would be $1,950. Local taxes and fees are extra.
Dealer doc fees in Arkansas
Arkansas Motor Vehicle Commission Rule 8 limits the dealer service and handling fee to no more than $129. A dealer that charges the fee must charge it uniformly to all retail customers and disclose the amount in writing.
Whatever the rule, the fee is part of your out-the-door price. Ask for it in the written quote and negotiate the total, not the line. See dealer fees explained.
Title and registration
Titles and registrations are handled by the Arkansas Department of Finance and Administration, Office of Motor Vehicle. A buyer has 60 days from the date of purchase to register the vehicle. Late registration adds a penalty of 10% of the sales tax due plus $3 for each 10 days the vehicle is not registered.
Also worth knowing
- A dealer may not represent the service and handling fee as being required by any entity other than the dealership.
- A dealer that charges a service and handling fee must display a sign stating the fee and its amount where sales documents are processed.
Sources
- Arkansas DFA Office of Motor Vehicle: Frequently Asked Questions (dfa.arkansas.gov)
- Arkansas DFA Office of Motor Vehicle: Recent Changes in the Law (dfa.arkansas.gov)
- Code of Arkansas Rules 26 CAR 30-701: Sale of motor vehicles, trailers, and semitrailers (codeofarrules.arkansas.gov)
- Arkansas DFA: Sales Tax Credit for Sale of a Used Vehicle (dfa.arkansas.gov)
- Arkansas Motor Vehicle Commission Rule 8: Dealer Service and Handling Fees (labor.arkansas.gov)
- Arkansas DFA: Office of Motor Vehicle (dfa.arkansas.gov)
Last checked Nov 10, 2026; next review by Feb 10, 2027. This page explains how the rules generally work and is not tax or legal advice. Rules change, so confirm with the state. Report an error.
Concierge
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