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# How Do You Calculate the Sales Tax on Used Cars in Arkansas?

Multiply the purchase price of the used vehicle by the Arkansas sales tax rate of 6.5% to find the amount of sales tax that must be paid when purchasing a used automobile in Arkansas. Those who purchase a vehicle in Texarkana must pay a 7% sales tax.

## Consider the vehicleâ€™s price.

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Determine the final purchase amount to determine the sales tax basis. The state of Arkansas calculates the total delivery price, which includes freight charges, additional equipment, rebates, and extended warranties, but excludes federal excise tax.

## Multiply the price by the applicable tax rate.

The percentage must be converted to a decimal. For example, the tax rate for the majority of residents is 6.5%. In decimal notation, 6.5 percent is 0.065 percent. Assuming the vehicleâ€™s purchase price was \$10,000, multiply \$10,000 by 0.065. The result in this example is \$650.

## Add the purchase price and tax amount to the sum

Calculate the entire cost of the vehicle purchase by adding the purchase price to the applicable tax amount. In the preceding example, adding \$10,000 and \$650 yields \$10,650. (The total price includes the purchase price and applicable taxes.)

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