The Huntsville, AR sales tax rate is 11.0% on most retail purchases in 2026. That total combines a 6.5% Arkansas state tax, a 3.5% Madison County tax, and a 1.0% City of Huntsville tax.1Arkansas Department of Finance and Administration. City and County Sales and Use Tax Rates April-June 2026 Groceries are the big exception. Starting January 1, 2026, Arkansas dropped its share of the tax on food to zero, which brings the rate on unprepared groceries in Huntsville down to 4.5%.2Arkansas Department of Finance and Administration. State Sales and Use Tax Rates
How the 11.0% Breaks Down
Three jurisdictions stack to produce the rate you see on a receipt in Huntsville:
- State of Arkansas: 6.5%. The base excise tax under Arkansas Code 26-52-301 is 3%, and additional levies under 26-52-302 bring the state portion to 6.5%.3Justia. Arkansas Code 26-52-302 – Additional Taxes Levied
- Madison County: 3.5%. The county rate rose to 3.5% effective October 1, 2025.4Arkansas Department of Finance and Administration. Local Sales and Use Tax Rate Changes
- City of Huntsville: 1.0%.1Arkansas Department of Finance and Administration. City and County Sales and Use Tax Rates April-June 2026
Local voters approve the county and city shares through ballot measures, so those pieces can move. The 2025 county increase is a recent reminder.
What Gets Taxed at 11.0%
Most tangible goods carry the full 11.0% rate: clothing, electronics, furniture, household supplies. Utilities like electricity, natural gas, and water are taxed too.5Justia. Arkansas Code 26-52-301 – Tax Levied
Arkansas also taxes a wide range of services. Vehicle repairs, landscaping (including residential landscaping), and cable or satellite television are all taxable.6Code of Arkansas Rules. 26 CAR 30-504 – Services Subject to Tax Cable and similar video distribution services are taxed on the entire charge, including installation, premium channels, and equipment rental.7Code of Arkansas Rules. 26 CAR 30-503 – Services Subject to Tax Video accessed solely through an internet service provider, meaning streaming through a browser rather than a dedicated cable system, is not taxed as a video service under that rule.
Digital products are taxable. Downloaded software, e-books, music, and streaming content purchased by an end user all fall under the state sales tax.5Justia. Arkansas Code 26-52-301 – Tax Levied Used goods sold in a retail setting are taxable as well; buying secondhand furniture from a store still triggers the full rate.8Arkansas Department of Finance and Administration. Sales and Use Tax FAQs
The 4.5% Grocery Rate
Arkansas eliminated the state-level tax on food and food ingredients effective January 1, 2026, under the Grocery Tax Relief Act. The state portion fell from 1.375% to 0%.2Arkansas Department of Finance and Administration. State Sales and Use Tax Rates Local taxes still apply, so groceries in Huntsville are taxed at 4.5%: the 3.5% county rate plus the 1.0% city rate.1Arkansas Department of Finance and Administration. City and County Sales and Use Tax Rates April-June 2026
The reduced rate applies to unprepared food and food ingredients, such as bread, produce, meat, and dairy. Prepared food does not qualify. If it’s heated, sold with utensils, or sold ready to eat, it’s taxed at the full 11.0%. At a grocery store deli, a rotisserie chicken gets the full rate while a package of raw chicken breasts gets 4.5%.9Justia. Arkansas Code 26-52-317 – Food and Food Ingredients
Common Exemptions
Several categories come out of the tax entirely or get special treatment:
- Prescription drugs dispensed by a licensed pharmacist, hospital, or physician for human use are fully exempt from state and local sales tax. Oxygen sold by prescription is also exempt.10Justia. Arkansas Code 26-52-406 – Prescription Drugs and Oxygen
- Durable medical equipment, including wheelchairs, prosthetics, mobility equipment, and disposable medical supplies, is exempt when prescribed by a physician before purchase.11Arkansas General Assembly. Summary of Proposal 33 – Durable Medical Equipment
- Qualifying farm machinery and equipment is exempt.8Arkansas Department of Finance and Administration. Sales and Use Tax FAQs
Motor vehicles, aircraft, watercraft, and manufactured housing follow a different local-tax structure. For those purchases, the local portion is calculated on a maximum of $2,500 rather than the full sale price. The cap can save hundreds or even thousands of dollars on expensive vehicles and boats.8Arkansas Department of Finance and Administration. Sales and Use Tax FAQs
The Annual Sales Tax Holiday
Arkansas holds a statewide sales tax holiday every summer, and Huntsville retailers participate. For 2026, the holiday runs from 12:01 a.m. Saturday, August 1 through 11:59 p.m. Sunday, August 2. Qualifying purchases of clothing, electronic devices, school supplies, school art supplies, and instructional materials are exempt from state and local sales tax during that window.12Arkansas Department of Finance and Administration. 2026 Sales Tax Holiday With an 11.0% combined rate, timing a laptop or tablet purchase for that weekend produces real savings.
Use Tax on Out-of-State Purchases
Buying something online from a seller that doesn’t collect Arkansas sales tax doesn’t make the purchase tax-free. You owe a use tax at the same rate: 6.5% state plus your local rates, which in Huntsville totals 11.0%. The DFA provides an Individual Consumer Use Tax Form that you can file with your state income tax return or download from the agency’s website.13Arkansas Department of Finance and Administration. Consumer Use Tax Most large online retailers already collect Arkansas sales tax under the state’s economic nexus rules, but smaller sellers often do not, which is where the reporting obligation falls on you.