It’s thrilling to purchase a new car in Arkansas, but you should be aware of the sales tax that goes along with it. The sales tax rate for vehicles in Arkansas is 6.5% of the purchase price. Based on the overall cost of the vehicle, including any trade-in values or incentives, this tax is computed.
For instance, if you spend $20,000 on a new car and receive $5,000 in exchange for your old one, the sales tax will be determined based on the $15,000 difference. The sales tax would be $975 in this scenario (6.5% of $15,000).
Arkansas levies a sales tax on food, although it’s only 1.5% instead of the usual 5%. Food products that are meant for human consumption and don’t have any extra vitamins or minerals are subject to this discounted rate.
In terms of overall tax rates, Arkansas is regarded as having modest rates. All income levels are subject to the state’s flat 5.9% income tax rate. Arkansas has comparatively cheap property taxes when compared to other states.
In Arkansas, there are different pricing for different types of alcohol. The tax rate for beer is $0.23 per gallon. The tax rate for wine is $0.75 per gallon. The tax rate for distilled spirits is $4.50 per gallon.
In conclusion, the sales tax in Arkansas is 6.5% of the vehicle’s cost. Based on the overall cost of the vehicle, including any trade-in values or incentives, this tax is computed. In Arkansas, foodstuffs are subject to sales tax, but at a lower 1.5% rate. With comparatively low property taxes and a flat income tax rate of 5.9%, Arkansas is generally regarded as a state with moderate taxation. The types of alcohol have different tax rates.