Arkansas used car dealer paperwork and sales tax guide
How Arkansas sales tax works on a used-car deal, how trade-ins and dealer fees are treated, and the title forms and notices a Arkansas dealer prints.
Last checked November 14, 2026
This is a plain-language summary of how a used-car deal works out in Arkansas: the sales tax, what happens to a trade-in, how dealer fees are treated, and the paperwork a dealer prints. DMS Apex uses these same rules to work out each Arkansas deal.
Arkansas tax and fees at a glance
| Item | Arkansas |
|---|---|
| State tax | Arkansas sales tax: the rate depends on the price plus local tax |
| Who pays it | Buyer, at titling or registration |
| Trade-in | Reduces the tax |
| Service and handling fee | Part of the taxable amount |
| Service contract | Taxed |
| Starting title fee in DMS Apex | $10 |
How Arkansas sales tax is worked out
Arkansas: the buyer pays the sales tax at the revenue office when titling, so the amounts shown are an estimate and are not added to what is due now. Used vehicles under $4,000 have no state tax, $4,000 to $9,999 are taxed at 3.5% and $10,000 and over at 6.5%, on the price after the trade-in; the tier is picked from the price before the trade-in (confirm with the DFA). Local tax applies to the first $2,500 (type the buyer's combined rate). Title fee starts at $10. The dealer fee is capped at $129. Texarkana residents pay a 7% state rate on a vehicle: not modeled.
Required wording beside the dealer fee
Arkansas requires this wording where the dealer fee appears. The Buyer's Order prints it.
A SERVICE AND HANDLING FEE IS NOT AN OFFICIAL FEE. A SERVICE AND HANDLING FEE IS NOT REQUIRED BY LAW BUT MAY BE CHARGED TO THE CUSTOMER FOR PERFORMING SERVICES AND HANDLING DOCUMENTS RELATING TO THE CLOSING OF A SALE OR LEASE. THE SERVICE AND HANDLING FEE MAY RESULT IN PROFIT TO THE DEALER. THE SERVICE AND HANDLING FEE DOES NOT INCLUDE PAYMENT FOR THE PREPARATION OF LEGAL DOCUMENTS. THIS NOTICE IS REQUIRED BY LAW.
Arkansas paperwork a dealer prints
DMS Apex prints these documents for a Arkansas deal, all in black and white:
- Form 10-381 Vehicle Registration Application
- Buyer's Order with the service and handling fee notice
- Buyers Guide
Step-by-step form guides
- Form 10-381 Vehicle Registration Application: how to fill it out
This is general information, not legal or tax advice. Arkansas rules change: confirm current requirements with the Arkansas Department of Finance and Administration.
Common questions
How much is sales tax on a used car in Arkansas?
Arkansas sales tax: the rate depends on the price plus local tax. A trade-in reduces the taxable amount. See the table above and confirm the current rate with the Arkansas Department of Finance and Administration.
Does a trade-in lower the tax in Arkansas?
Yes. In Arkansas the trade-in allowance reduces the amount the tax is figured on.
Is the dealer fee taxed in Arkansas?
Yes. In DMS Apex the service and handling fee is part of the taxable amount for Arkansas.
Does DMS Apex print Arkansas dealer forms?
Yes. It prints Form 10-381 Vehicle Registration Application, Buyer's Order with the service and handling fee notice, Buyers Guide.
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