Sales Tax is another expenditure to be aware of when purchasing a vehicle. The State of Arkansas outlines it’s tax information below.
Sales tax, registration and title fees: The state sales and use tax rate is 6.5%, 7% for Texarkana residents, of the taxable price of motor vehicles, trailers and semi-trailers with a gross purchase price of $4000.00 or greater. Tax is computed on the total delivery price including rebate, freight charges and extra equipment. Federal Excise Tax is not included. Extended warranties are taxable whether or not the vehicle is taxable.
So the total purchase price, after trade-in (if applicable) is multiplied by 6.5%. Just like for a down payment, let’s use a vehicle cost of $12,000.
Without a trade in, your sales tax on a $12,000 vehicle would be $780.00. This does not cover any of the other local fees or taxes assessed when you get your plate.