Report: Arkansas Has Second-Highest Combined State & Local Sales Tax In U.S.

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Courtesy: Tax Foundation

ARKANSAS (KFSM) – Arkansas has the second-highest combined state and local sales tax in the country, according to a report from Tax Foundation.

The report, published on April 8, analyzed local sales tax rates and state sales tax rates across the country at the start of 2015. The Arkansas state tax rate is 6.5 percent, and the average local tax rate is 2.76 percent, adding up to a combined total of 9.26 percent, the report states.

The combined rate is second only to Tennessee, which has a  combined tax rate of 9.45 percent, according to Tax Foundation.

A total of 45 states in the U.S. collect statewide sales taxes, and 38 collect local sales taxes, the report states.

Oklahoma placed at number six on the list with a combined tax rate of 8.77 percent, according to Tax Foundation.

Four states tied for the lowest combined tax rate, and they were:

  • Delaware
  • Montana
  • New Hampshire
  • Oregon

None of the above-named states have a local or state sales tax, according to the report.

The Tax Foundation describes itself as a “nonpartisan research think tank, based in Washington, D.C.” They’ve been analyzing tax policy since 1937, their website states.

To read the full report, click here.


  • Lin Frank

    and yet they STILL don’t have enough money to fix roads or light streets…amazing…I call it MISMANAGEMENT OF FUNDS….and also A DO NOTHING REPUBLICON Senator or two…

  • Joel G Wood

    What the artcile does not say is that Arkansas ALSO has an Income Tax. It’s 7% for AGI’s of $35,100 and more. The sales tax in Fayetteville is 9.75%, which is higher thatn the maximum allowed in Tennessee, a state that does not have an Income Tax.

  • usarmyairborne

    No surprise here. Now, let’s raise the salaries for our part-time legislative members. Wait. This has already been done.

  • Leten Uno

    Surface Thinking Alert:
    People life isn’t as simple as you seem to think. States fund government and infrastructure in many different ways.
    Texas has no income tax. But the highest property tax in the nation.
    Oregon has the lowest property tax in the nation. But the highest income tax.
    South Dakota has high sales, high property and very low income tax.
    Arkansas has a higher sales tax and income. But one of the lowest property taxes in the nation’.

    Lin, I understand. However the NWA 4 lanes to the Oklahoma Boarder, the Freeway south through the tunnel to FSMh and the perpetual focus on Hwy 412 across the top of the state have taken a lot of the resources over the last decade. The Billion dollar bond issue Gov Huck wrote to repair I-30 and I-40 lowered the fund pool as well.
    One trip across the Oklahoma line can provide a start contrast. Oklahoma didn’t fund road repair, didn’t fix pot holes, resurface or repair and build bridges for over a decade. Today they are in serious trouble. Oklahoma roads have deteriorated to a crisis point. They have started funding and working on the problem. Morgan Freeman was hired to voice over a commercial appealing to the people to force government to move faster. Around Tulsa and OKC the monthly tolls are higher than some monthly medicine bills. I cringe going out there, even with a pike pass I know I’m going to spend a little money just driving around.
    There isn’t a toll road in Arkansas. And the roads are far better than our westerly neighbor. Oklahoma has some of the worst roads. Arkansas ranks in the middle of the pack, and many of ours are through hilly curvy terrain and were originally built in the 30’s.
    Head south to swampy Louisiana and find the worst rated roads in the country. Yet in flat, flat, flat Kansas you find some of the best.
    Funding, curves, terrain and elevation matter.

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