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Arkansas Small Business Tax Guide
Arkansas sales tax permits, returns and rate, and corporate income tax by tax year, each quoted from DFA, state rules or Act 1 of 2026 with its date, plus federal points. An educational overview, not tax advice.
Disclaimer: This page is educational content only. Tax laws change, and your situation may differ. It is not legal, tax, or financial advice. Consult a qualified professional licensed in Arkansas before making filing or planning decisions.
Tax landscape for small businesses
Each Arkansas fact below is quoted from the Department of Finance and Administration (DFA), the Code of Arkansas Rules or Act 1 of 2026, and carries that source's own date. Rules and rates change, so confirm with DFA before you file.
Sales tax: DFA's special event promoter form ST-371 (revised March 22, 2024) says "The current state sales tax rate is 6.5%." That is the form's statement as of its revision date, not a 2026 figure. For special events, the same form adds "Local sales tax is also to be collected with the rate dependent on the location of the event."
Worked example (sample figures, state rate only): a $1,000.00 taxable sale × 6.5% (the rate on DFA special event promoter form ST-371, revised March 22, 2024) = $65.00 in state sales tax. This page doesn't list local sales tax; ask DFA whether a local rate applies where you sell.
For federal estimated tax, the IRS estimated taxes page (In the US (federal), last reviewed or updated September 25, 2026) says "Estimated tax is used to pay not only income tax, but other taxes such as self-employment tax and alternative minimum tax."
Tax overview
Each row lists a tax area and its notes. Confirm current figures with your state's tax agency or the IRS.
| Tax type | Rate or basis | Notes |
|---|---|---|
| Arkansas state sales tax | "6.5%" | Arkansas, DFA special event promoter form ST-371 (revised March 22, 2024): "The current state sales tax rate is 6.5%." That date is the form's. This page doesn't list local sales tax; ask DFA whether a local rate applies where you sell. |
| Arkansas corporate income tax, tax years from 2024 | "4.3%" maximum | Arkansas, DFA 2025 Corporation Income Tax Instructions: Act 4 of the second Extraordinary Session of 2024 reduced "the maximum corporation income tax rate to 4.3% for all taxable income exceeding $11,000 for tax years beginning on or after January 1, 2024." |
| Arkansas corporate income tax, tax years from 2027 | "four and one-tenths percent (4.1%)" over $11,000 | Act 1 of the First Extraordinary Session of 2026 (marked "APPROVED: 5/6/26"), Section 2, for domestic corporations "For tax years beginning on or after January 1, 2027": "On net income exceeding eleven thousand dollars ($11,000), four and one-tenths percent (4.1%)." The Act sets lower rates on the first $11,000 of net income, and Section 3 applies the same basis to foreign corporations doing business in Arkansas. This is a 2027 rule, not a 2026 rate. |
| Arkansas individual income tax, tax years from 2026 | "$4,701 and above 3.7%" (one table) | Act 1 of the First Extraordinary Session of 2026 (marked "APPROVED: 5/6/26"), Section 1, "For tax years beginning on or after January 1, 2026", for net income "greater than ninety-four thousand seven hundred dollars ($94,700)": "$4,701 and above 3.7%". Lower net incomes use a separate table, a bracket adjustment applies to net income "greater than or equal to ninety-four thousand seven hundred one dollars ($94,701) but not greater than ninety-seven thousand six hundred dollars ($97,600)", and the Act says the tables "shall be adjusted annually". Check DFA for the table for your year. |
| Federal SE tax, social security part | "the first $184,500" | The IRS self-employment tax page (In the US (federal), last reviewed or updated October 30, 2026): "For 2026, the first $184,500 of your combined wages, tips, and net earnings is subject to any combination of the social security part of self-employment tax, social security tax, or railroad retirement (tier 1) tax." |
Filing requirements
This list isn't a complete checklist for your business.
Arkansas sales tax permit
26 CAR § 30-1203 (Code of Arkansas Rules, as retrieved on October 31, 2026) says a person liable to remit the tax "shall make application for a permit on forms prescribed by the Commissioner of Revenue." It adds "A separate permit for each business location in Arkansas must be obtained." and "Each application shall be accompanied by a nonrefundable fee of fifty dollars ($50.00)."
Claiming an exemption
26 CAR § 30-1203 (Code of Arkansas Rules, as retrieved on October 31, 2026) puts the permit duty on every person liable to remit the tax and on every person who makes "a return or report for the purpose of claiming any exemption from the payment of the tax". This guide doesn't list which Arkansas sales are exempt.
Arkansas sales tax returns
26 CAR § 30-1208 (Code of Arkansas Rules, as retrieved on October 31, 2026) requires sellers to deliver to DFA, "on or before the twentieth day of each month, a return showing the tax due during the preceding calendar month." Quarterly or yearly filing is not a choice you make: when the average tax "for the previous fiscal year (July 1 through June 30)" does not exceed "one hundred dollars ($100) per month" (quarterly) or "twenty-five dollars ($25.00) per month" (yearly), "the secretary may notify the taxpayer", and "Taxpayers should continue to file monthly reports until they receive the notice to begin filing quarterly reports." The Code of Arkansas Rules says it "became effective on January 1, 2025. It is updated on a weekly basis and may not reflect recent rulemaking." Check DFA for later changes.
Arkansas prepayment and electronic payment
These apply only to larger sellers. 26 CAR § 30-1208 (Code of Arkansas Rules, as retrieved on October 31, 2026) says taxpayers with "average net sales of two hundred thousand dollars ($200,000) or more per month for a period of one (1) year must prepay their monthly gross receipts tax liability by electronic funds transfer", and "Each taxpayer whose monthly liability for gross receipts tax or compensating use tax exceeds twenty thousand dollars ($20,000) shall pay the taxes due by electronic funds transfer."
Federal estimated tax
The IRS estimated taxes page (In the US (federal), last reviewed or updated September 25, 2026) says "the year is divided into four payment periods". It also says "If a payment is mailed, the date of the U.S. postmark is the date of payment."
Federal self-employment tax
The IRS self-employment tax page (In the US (federal), last reviewed or updated October 30, 2026) says "Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves."
Deductions and write-offs
Confirm with your state how it treats each item.
- Self-employed health coverage: the IRS self-employment tax page (In the US (federal), last reviewed or updated October 30, 2026) says "Under Section 2042 of the Small Business Jobs Act, a deduction, for income tax purposes, is allowed to self-employed individuals for the cost of health insurance."
- Business mileage: the IRS standard mileage rates page (In the US (federal), last reviewed or updated July 28, 2026) says "If you use your car for business, charity, medical or moving purposes, you may be able to take a deduction based on the mileage used for that purpose."
- Why records matter: the IRS recordkeeping page (In the US (federal), last reviewed or updated May 1, 2026) says "Good records will help you monitor the progress of your business, prepare your financial statements, identify sources of income, keep track of deductible expenses, keep track of your basis in property, prepare your tax returns, and support items reported on your tax returns."
Practical tips
- If you sell from more than one Arkansas location, 26 CAR § 30-1208 says you file "a single report combining all of the tax due derived from sales at its Arkansas locations" registered under the same FEIN or Social Security number.
- Keep filing monthly until DFA notifies you that you may file quarterly or yearly.
- Record cash and check payments too. Billed's invoice software page (checked October 31, 2026) says "When a client pays by check or cash, record it as an offline payment so all your income is in one place."
- Keep billing and costs together. The same page says "Billed keeps invoicing, estimates, expenses, time tracking and reports in one account."
- Keep a mileage log with the date, purpose and miles for each business trip.
Frequently asked questions
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At a glance
| Topic | What the source says |
|---|---|
| State sales tax rate | "The current state sales tax rate is 6.5%." (Arkansas, DFA special event promoter form ST-371 (revised March 22, 2024)) |
| Sales tax permit | "Each application shall be accompanied by a nonrefundable fee of fifty dollars ($50.00)." (26 CAR § 30-1203, Code of Arkansas Rules, as retrieved on October 31, 2026) |
| Monthly return | "on or before the twentieth day of each month" (26 CAR § 30-1208, Code of Arkansas Rules, as retrieved on October 31, 2026) |
| Corporate tax, from 2024 | "4.3% for all taxable income exceeding $11,000" (Arkansas, DFA 2025 Corporation Income Tax Instructions) |
| Corporate tax, from 2027 | "four and one-tenths percent (4.1%)" on net income over $11,000 (Act 1 of the First Extraordinary Session of 2026 (marked "APPROVED: 5/6/26")) |
| SE tax wage base | "the first $184,500" (IRS self-employment tax page (In the US (federal), last reviewed or updated October 30, 2026)) |
When this isn't for you
Useful if you run a small Arkansas business and want each state and federal point tied to its source. It doesn't list local sales tax rates or cover payroll or audits; ask DFA or a tax professional about those.