The sales tax rate in Searcy, AR is 9.75% on most purchases, combining a 6.50% Arkansas state tax, a 1.75% White County tax, and a 1.50% City of Searcy tax. Groceries are taxed at a lower combined rate of 3.25% because the state portion no longer applies to them, and restaurant meals and hotel stays carry extra city tourism taxes on top of the standard 9.75%.
How the 9.75% Breaks Down
Every taxable receipt in Searcy stacks three separate taxes into one line:
- Arkansas state sales tax: 6.50%, applied statewide to tangible personal property, specified digital products, and taxable services.1Arkansas Department of Finance and Administration. Sales and Use Tax FAQs
- White County sales tax: 1.75%.
- City of Searcy sales tax: 1.50%.
Local rates come from voter-approved ordinances rather than the legislature, so they can change when residents pass a new levy or let an old one expire. Businesses collect the full 9.75% at the register and send it on to the Arkansas Department of Finance and Administration.
Groceries: 3.25%
Arkansas eliminated the 6.50% state sales tax on food and food ingredients starting January 1, 2026, under the Grocery Tax Relief Act.2Justia. Arkansas Code 26-52-317 – Food and Food Ingredients The county and city portions still apply, so grocery shoppers in Searcy pay 3.25% on qualifying food.
The reduced rate only covers food and food ingredients as the state defines them. Prepared food, candy, dietary supplements, and alcoholic beverages do not qualify. A raw chicken from the meat case gets the grocery rate; a rotisserie chicken from the deli counter gets the full 9.75%.
Restaurant Meals: 10.75%
Prepared food is taxed as a regular sale rather than as groceries, so the full 9.75% applies.3Arkansas Department of Finance and Administration. Food and Food Ingredients Arkansas defines prepared food broadly: anything sold heated, anything the seller mixes or combines for you, and anything the seller hands you utensils to eat.
Searcy adds a 1% Advertising and Promotion tax on prepared food and non-alcoholic beverages under City Ordinance No. 2019-08. That brings the effective rate on a restaurant meal in Searcy to 10.75%. The A&P revenue funds the city’s tourism promotion rather than general operations.
Hotel Stays: 12.75%
Short-term lodging carries an even steeper add-on. Searcy imposes a 3% A&P tax on gross receipts from hotels, motels, bed-and-breakfasts, cabins, and campground stays of fewer than 30 days. Combined with the 9.75% sales tax, overnight guests pay 12.75% on their room charges.
What Else the Full Rate Covers
Most things sold in a store attract the full 9.75%. Clothing, electronics, furniture, appliances, tools, and sporting goods are all taxable if they’re tangible personal property and not specifically exempted. Arkansas also taxes specified digital products, which includes digital music, e-books, and streaming subscriptions.4Arkansas Department of Finance and Administration. Remote Sellers and Marketplace Facilitators
Renting tangible property counts as a sale under Arkansas law, so equipment rentals and vehicle leases also carry the full rate.5Arkansas Economic Development Commission. Sales and Use Tax Taxable services include gas, water, and electricity, telephone and telecommunications, and repair work. Arkansas taxes a defined list of services, not services across the board, but utility bills and repair jobs are in.
Exemptions Worth Knowing
Prescription drugs dispensed by a licensed pharmacist, hospital, or physician for human use are fully exempt from both state and local sales tax.6Justia. Arkansas Code 26-52-406 – Prescription Drugs and Oxygen Oxygen prescribed by a licensed physician for human use is also exempt.
Medical devices get favorable treatment when a physician writes a prescription before the sale. The exemption covers four categories:7Code of Arkansas Rules. 26 CAR 30-1115 – Exemptions from Tax
- Durable medical equipment designed for repeated use at home, such as hospital beds or CPAP machines.
- Mobility-enhancing equipment such as wheelchairs and walkers.
- Prosthetic devices worn on or in the body, including replacement parts.
- Disposable medical supplies prescribed for a specific patient.
Over-the-counter medications and supplies bought without a prescription do not qualify. The prescription is the dividing line.
The August Sales Tax Holiday
Arkansas holds an annual sales tax holiday each August. For 2026, it runs from 12:01 a.m. on Saturday, August 1 through 11:59 p.m. on Sunday, August 2. Qualifying purchases of clothing, electronic devices, school supplies, school art supplies, and school instructional materials are exempt from both state and local sales tax during that window.8Arkansas Department of Finance and Administration. 2026 Sales Tax Holiday At 9.75%, skipping the tax on a $500 laptop keeps almost $49 in your pocket.