How Long Do You Have to Pay Sales Tax on a Car in Arkansas?

In Arkansas, you have 60 calendar days from the date of transfer to title and register the vehicle, and the sales tax is due at that registration appointment. The state won’t issue a license plate until the tax is paid in full, and letting the 60 days lapse adds an automatic 10% penalty on top of the tax you already owed.¹²

The clock starts on the date of transfer shown on the title or bill of sale, not the day you get around to visiting a Department of Finance and Administration (DFA) revenue office. The same 60-day window applies to cars, motorcycles, and commercial trucks, and to situations where a prior lien has just been released.¹

What Happens If You Miss the 60 Days

Once day 61 hits, the DFA adds a penalty equal to 10% of the total tax due.² On a $20,000 car taxed at the full 6.5% state rate, that’s an extra $130 you didn’t need to spend. The penalty and the underlying tax both have to be paid before the DFA will issue plates, so there’s no option to register now and settle the penalty later.³

Driving an unregistered vehicle on any Arkansas highway after the 60 days expire is a misdemeanor, so the pressure isn’t only financial.

Driving the Car Before You Register

You can legally drive the vehicle during the 60-day window as long as you carry either a title assigned to you or a notarized bill of sale showing the transfer.⁴ Keep that document in the car until you have plates.

What You’ll Owe When You Pay

The Arkansas state sales tax rate on a vehicle is 6.5%, and it applies to every new vehicle and to any used vehicle sold for $10,000 or more.⁵ Used vehicles priced under those thresholds get a break:

Any applicable city and county sales taxes stack on top of the state rate, though local taxes on highway-licensed vehicles are subject to per-transaction caps.⁷ Tiers are based on the total consideration paid. If the DFA suspects a private-party sale price is artificially low, it can tax the vehicle at fair market value using standard guides like Kelley Blue Book or NADA.

Ways to Lower the Tax Before You Pay

Two credits can shrink what you owe at the counter.

Trade-in credit. When you trade a vehicle in at a dealership, Arkansas taxes only the net price after the trade allowance.³ Buy a $30,000 truck, trade in a car worth $12,000, and you’re taxed on $18,000.

Private sale credit. If you sell your old vehicle privately within 45 days before or after buying the new one, you can claim a credit equal to the cash proceeds from that sale against the tax on the new purchase.⁸ The credit can wipe out the tax entirely, but it can’t exceed what you paid for the replacement vehicle.⁹ To claim it, bring a completed bill of sale to registration showing signatures from both parties, names and addresses, VIN, price, and date. No bill of sale, no credit.

If the private sale happens after you’ve already paid tax on the new vehicle, you can still file a refund claim with the DFA’s Tax Credits and Special Refunds Section, attaching your new registration certificate and the bill of sale.

Note the two windows don’t match. Registration is 60 days; the private sale credit is 45 days on either side of the purchase. If you’re planning to sell privately, don’t let the 45-day side slip past while you’re still inside your 60-day registration window.

Out-of-State Purchases

Buying a car in another state doesn’t change the Arkansas deadline. You still owe compensating use tax when you register in Arkansas, within the same 60 days. Arkansas gives you a dollar-for-dollar credit for any similar sales or use tax already paid to the other state, but only if that state extends the same reciprocal credit to Arkansas residents.¹⁰ Paid as much or more elsewhere? You owe nothing extra. Paid less? You owe the difference. A handful of states don’t reciprocate, and in those cases you get no Arkansas credit at all. Keep the out-of-state receipt showing the tax paid, because you’ll need to present it at the revenue office.

Personal Property Tax Can Block You

One thing worth checking before you show up to register: your county personal property tax status. Every Arkansas vehicle owner must assess vehicles annually with the county assessor and pay the personal property tax that follows. If county records show you haven’t assessed or haven’t paid, the DFA will not process the registration, and you can’t clear it online, by phone, or in person until the county side is resolved.¹¹¹ A property-tax hold on an existing vehicle can burn through your 60 days on a new one, so handle it early.

1
Arkansas Department of Finance and Administration. Vehicle Tag Renewal
2
Justia Law. Arkansas Code 26-53-126 – Tax on New and Used Motor Vehicles, Trailers, or Semitrailers – Payment and Collection
3
Justia Law. Arkansas Code 26-52-510 – Direct Payment of Tax on New and Used Motor Vehicles
4
Arkansas Department of Transportation. Vehicle Registration Fees and Requirements
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Arkansas Department of Finance and Administration. State Sales and Use Tax Rates
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Justia Law. Arkansas Code 26-53-150 – Special Tax Rate for Certain Used Motor Vehicles
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Arkansas Department of Finance and Administration. Sales and Use Tax FAQs
8
Arkansas Secretary of State. 26 CAR 30-702 – Sales Tax Credit for Private Sale of a Used Vehicle
9
Legal Information Institute. 006.05.08 Ark. Code R. 12.1 – Sales Tax Credit for Private Sale of a Used Vehicle
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Justia Law. Arkansas Code 26-53-131 – Credit for Tax Paid in Another State
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Justia Law. Arkansas Code 27-14-1015 – Payment of Personal Property Taxes and Listing for Assessment Required