Arkansas Sales Tax Guide for SaaS and E-Commerce Businesses 2025
Arkansas imposes a 6.5% statewide sales and use tax, plus local rates that can add up to an additional 6.125%. The state taxes most tangible goods and digital products, but does not tax SaaS or electronically delivered software.
This guide explains how SaaS companies and e-commerce sellers are taxed in Arkansas, including nexus rules, marketplace facilitator obligations, filing deadlines, and exemptions.
Last updated: September 2025
Quick Reference: Arkansas Sales & Use Tax 2025
| Topic | Details |
|---|---|
| Statewide sales tax rate | 6.5% (State Sales & Use Tax Rates) |
| Local rates | 0%–6.125% depending on county or city |
| Economic nexus threshold | $100,000 in sales or 200 separate transactions into Arkansas in the current or prior year (Act 822 of 2019) |
| Is SaaS taxable? | No. SaaS and electronically delivered software are exempt. |
| Filing due date | 20th of the month following the reporting period |
| Registration portal | ATAP (Arkansas Taxpayer Access Point) |
| Tax agency | Arkansas DFA – Sales & Use Tax |
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SaaS & Digital Products in Arkansas
Unlike many states, Arkansas does not tax Software-as-a-Service or electronically delivered software. Software transferred on a physical medium is taxable.
Key SaaS Rules
- Not taxable: SaaS, cloud-hosted applications, electronically downloaded software
- Taxable: Prewritten software provided on a tangible medium
- Digital products: E-books, music, movies, and streaming services are taxable
- Bundled sales: If SaaS is bundled with taxable products and not separately stated, the taxable portion may apply
Source: Arkansas State Taxability Matrix
E-Commerce & Tangible Goods in Arkansas
| Category | Taxable? | Notes |
|---|---|---|
| Tangible goods | Yes | Tangible personal property is taxable unless exempt |
| SaaS & software | No | SaaS and electronically delivered software are exempt. Prewritten software on physical media is taxable |
| Custom software | No | Exempt if created or substantially modified for a single purchaser |
| Digital products | Yes | Downloads, e-books, digital audio or video, and streaming subscriptions are taxable |
| Services | Some | Most services are exempt unless listed as taxable |
Arkansas uses destination-based sourcing. The rate is based on the customer’s delivery location.
Economic Nexus: Remote Seller Rules
Remote sellers must register and collect Arkansas sales tax if, in the current or prior calendar year, they have:
- More than $100,000 in Arkansas sales, or
- 200 or more separate transactions delivered into the state
Thresholds include both taxable and exempt sales.
Sources:
Act 822 of 2019
DFA Remote Sellers
Marketplace Facilitator Rules
Marketplace facilitators must collect and remit Arkansas sales tax if they meet the same thresholds as remote sellers.
Source: DFA Remote Sellers
Filing & Due Dates
- File via: ATAP
- Filing frequency: Monthly, quarterly, or annually, as assigned by DFA
- Due date: Returns and payments are due on the 20th of the month following the reporting period
- Zero returns: Required even if you had no taxable sales
Penalties & Compliance Notes
- Failure to file or failure to pay can result in penalties and interest under Arkansas law
- Keep invoices, contracts, and exemption certificates to document SaaS or custom software exemptions
See: Penalty and Interest Charges – DFA
FAQs: Arkansas Sales Tax for SaaS & E-Commerce
Is SaaS taxable in Arkansas?
No. SaaS and electronically delivered software are not taxable.
Is custom software taxable?
No. Custom-developed or substantially modified software for one purchaser is exempt.
Are digital goods like e-books and streaming taxable?
Yes. Arkansas taxes specified digital products.
What is Arkansas’ economic nexus threshold?
Remote sellers must register if they exceed $100,000 in sales or 200 transactions in a year.
Do marketplace facilitators have to collect?
Yes. Marketplaces collect Arkansas sales tax once they cross nexus thresholds.
Does Arkansas have local sales tax?
Yes. Local sales tax rates can add 0%–6.125% on top of the statewide 6.5% rate.
Official Arkansas Resources
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