Sales Tax Nexus in Arkansas: What Online Sellers Need to Know
The Short Answer
Arkansas triggers sales tax obligations at $100,000 in sales OR 200 transactions — whichever comes first. Arkansas is a full SST member, which simplifies registration. The state has a higher-than-average rate, and SaaS is taxable under Arkansas's digital products framework.
Economic Nexus Threshold
- Dollar threshold: $100,000 in gross receipts from sales into Arkansas
- Transaction threshold: 200 or more separate transactions
- Either/Or: Meeting either triggers the obligation
- Measurement period: Preceding 12 calendar months (rolling)
- Effective date: July 1, 2019
Does Arkansas Count Marketplace Sales Toward Your Threshold?
Arkansas marketplace facilitator rules provide relief for underlying sellers when the marketplace certifies it is collecting and remitting all Arkansas tax. The threshold aggregation rules (whether marketplace sales count toward your own threshold) should be confirmed for your specific situation — Taxero handles this assessment during onboarding.
What Taxable Products Look Like in Arkansas
Arkansas's state rate is one of the higher base rates among all states. Combined local rates vary by city and county — check the Arkansas DFA's rate lookup for your buyer's exact location.
- Clothing: Taxable
- Groceries: Taxable at a significantly reduced rate
- SaaS and digital goods: Taxable. Arkansas follows SST definitions for specified digital products, and SaaS is taxable under Arkansas's digital goods framework.
How to Register in Arkansas
Arkansas is an SST member — use the SSTRS for the simplest path:
- SST SSTRS: sstregister.org
- Direct portal: atap.arkansas.gov (Arkansas Taxpayer Access Point)
- Cost: Free
Filing Requirements
Monthly (liability ≥ $1,000/month), quarterly, or annual based on volume. Due 20th of the following month. File Form ET-1 via ATAP.
What Happens If You Don't Register
Late filing penalty: 5% per month, maximum 35%. Interest also applies. Arkansas's SST membership facilitates VDA options for past-period exposure.
How Taxero Handles Arkansas
Taxero uses SST registration for Arkansas, tracks both threshold measures, applies the SaaS taxability rules, and handles monthly or quarterly ATAP filings.
Get Your Free Nexus Report
Related resources
This article is for general informational purposes only and isn't tax advice. Sales tax rules vary by state and change often — consult a qualified tax professional about your specific situation before acting on anything here.
Ready to get compliant?
Taxero monitors your nexus, registers you where you owe, and files your returns automatically. Free to start — no sales call required.
Get Started Free →