Conway, AR Sales Tax: 9.125% Rate, 2026 Changes, and Exemptions

The sales tax rate in Conway, Arkansas is 9.125% as of April 1, 2026. That total combines the 6.5% Arkansas state rate, a 0.5% Faulkner County tax, and a 2.125% City of Conway tax, and it applies to most retail purchases made within city limits.1City of Conway, Arkansas. City Clerk

How the 9.125% Breaks Down

Three taxing authorities each stack their own rate onto every taxable sale:

Add them: 6.5 + 0.5 + 2.125 = 9.125. The rate applies to the pre-tax price, and every business inside the city collects it at the register.

What Changed in 2026

Two shifts hit Conway shoppers early in the year, one raising the rate and one lowering it on a specific category.

New Public Safety Tax

Conway voters approved a 0.25% sales tax for public safety capital improvements in a November 2025 special election. It took effect April 1, 2026, pushing the city’s share from 1.875% to 2.125%.1City of Conway, Arkansas. City Clerk Revenue is restricted to emergency operations center costs, police and fire station construction and upgrades, land acquisition, and emergency vehicles and equipment.4City of Conway, Arkansas. Special City Council Meeting Agenda – September 2, 2025

State Grocery Tax Eliminated

On January 1, 2026, Arkansas eliminated its last remaining 0.125% state tax on groceries under Act 1008. Unprepared food no longer carries any state sales tax. Faulkner County’s 0.5% and Conway’s 2.125% still apply, so groceries in Conway are taxed at a combined 2.625% rather than the full 9.125%.

What Gets Taxed

Arkansas taxes most tangible personal property: furniture, electronics, clothing, appliances, and other physical goods. Specified digital products and digital codes are also taxable, which covers most downloaded content and digital subscriptions.5Justia Law. Arkansas Code Title 26 Subtitle 5 Chapter 52 Subchapter 4 Section 26-52-401 – Various Products and Services Computer software delivered electronically or by “load and leave” is not treated as tangible personal property for tax purposes.6Justia Law. Arkansas Code Title 26 Subtitle 5 Chapter 52 Subchapter 3 Section 26-52-304 – Tax Levied on Sales of Computer Software

Services are taxed more narrowly. Utilities (gas, water, electricity), most solid waste disposal, telephone and prepaid telecommunications, and repair services all fall within the tax.7Arkansas Economic Development Commission. Sales and Use Tax Most professional services, including legal, accounting, medical, and consulting work, are not. Short version: a plumber’s repair labor is taxable; a lawyer’s time is not.

What’s Exempt

A handful of categories escape the sales tax or get special treatment.

Prescription drugs dispensed by a licensed pharmacist, hospital, or physician for human use are fully exempt from both state and local sales tax. Prescription oxygen is also exempt.8Justia Law. Arkansas Code Title 26 Subtitle 5 Chapter 52 Subchapter 4 Section 26-52-406 – Prescription Drugs and Oxygen

Sales by churches and charitable organizations (when not operating as a for-profit business), sales to the federal government, and school cafeteria meals are exempt.5Justia Law. Arkansas Code Title 26 Subtitle 5 Chapter 52 Subchapter 4 Section 26-52-401 – Various Products and Services

Gasoline and diesel on which the state motor fuel tax has already been paid are exempt from the gross receipts tax, because they are taxed under a separate system.5Justia Law. Arkansas Code Title 26 Subtitle 5 Chapter 52 Subchapter 4 Section 26-52-401 – Various Products and Services

Groceries vs. Prepared Food

The line between the two matters because the rate changes sharply. Unprepared food bought for home preparation is taxed at the combined local rate of 2.625% in Conway. Prepared food is taxed at the full 9.125%. Arkansas treats food as prepared if the seller heats it, combines ingredients for you, or hands you a utensil. A rotisserie chicken from the deli counter, a restaurant meal, and a sandwich made to order at the counter all fall on the prepared side.

Annual Sales Tax Holiday

Under Act 757 of 2011, Arkansas runs a two-day sales tax holiday on the first weekend of August each year, waiving both state and local sales tax on eligible items. Qualifying categories:

  • Clothing and footwear priced under $100 per item
  • Clothing accessories priced under $50 per item
  • School supplies and art supplies, no price cap
  • School instructional materials, no price cap
  • Electronic devices commonly used by students for academic purposes

Anything above those price thresholds stays fully taxable even during the holiday.9Arkansas House of Representatives. Sales Tax Holiday Approaching On a Conway back-to-school trip, the full 9.125% comes off every qualifying item.

Use Tax on Out-of-State Purchases

When you buy a taxable item from a seller who did not collect Arkansas sales tax, whether online, by phone, or in person out of state, you owe the equivalent amount as use tax. The rate matches your local sales tax, so 9.125% in Conway. Arkansas residents report these purchases on Form CU-1, the Consumer Use Tax Report.10Arkansas Department of Finance and Administration. Sales and Use Tax Forms Most large online retailers now collect Arkansas tax automatically, but smaller sellers may not, and the liability sits with the buyer when they don’t.

Quick Calculation

Multiply the pre-tax price by 0.09125 to get the sales tax on a standard purchase in Conway. A $50 item generates $4.56 in tax, for a $54.56 total. For groceries, multiply by 0.02625 instead, because the state portion no longer applies. A $150 grocery trip adds $3.94 in local tax, compared with $13.69 on a non-food purchase at the same price.