🇺🇸 Arkansas: SaaS Is Not Taxed

🟢 No, Arkansas does not tax SaaS. Here's what SaaS founders and freelancers need to know about selling software to customers in Arkansas.

🇺🇸
State
Arkansas
SaaS Sales Tax Rate
Exempt
Taxes SaaS?
No

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SaaS Sales Tax in Arkansas

SaaS is generally not taxable in Arkansas as it is not considered tangible personal property.

Since SaaS is not taxable in Arkansas, you do not need to collect or remit sales tax on SaaS sales to customers there. This simplifies your compliance significantly.

However, keep in mind that tax rules evolve. States regularly reconsider their stance on taxing digital products and services. It's worth monitoring Arkansas's tax updates, especially if you have significant revenue from customers there.

Other Tax Considerations

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Even though SaaS isn't taxed in Arkansas, other types of digital products (downloaded software, digital goods, streaming services) may have different treatment. Always verify the specific category of your product.

International Sellers

If you're selling from outside the US (EU, UK, or elsewhere) to customers in Arkansas:

Since Arkansas doesn't tax SaaS, you don't need to worry about sales tax collection here. Focus your compliance efforts on states that do tax SaaS.

Frequently Asked Questions

Does Arkansas charge sales tax on SaaS?
No. Arkansas does not currently charge sales tax on SaaS. SaaS is generally not taxable in Arkansas as it is not considered tangible personal property.
What is the sales tax rate in Arkansas?
The state sales tax rate in Arkansas is 6.5%. Local taxes may apply on top of this, varying by county and city.
Do I need economic nexus in Arkansas to charge sales tax?
Since Arkansas does not tax SaaS, economic nexus for SaaS sales tax is not a concern here. However, other tax obligations may still apply.
How do I invoice a customer in Arkansas?
Since SaaS is not taxed in Arkansas, you do not need to add sales tax to your invoice. Simply invoice the net amount.
I'm an EU/UK seller — do I need to charge Arkansas sales tax?
Since Arkansas does not tax SaaS, you do not need to collect sales tax on SaaS sales to customers there, regardless of where your business is based.

Check Your Cross-Border Tax Obligations

Use our free calculator to find the exact tax rate, registration requirements, and invoice wording for any cross-border sale.

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