Short-Term Rental Tax in Arkansas (AR)
The state-level tax rate on short-term rentals in Arkansas is 8.5% , consisting of 6.5% sales tax and 2.0% lodging tax. Arkansas applies general sales and lodging taxes to STRs without STR-specific legislation. Major platforms like Airbnb collect state taxes automatically. With local taxes, the total rate in Hot Springs reaches 13.5%. STR operators must register with the state. Arkansas imposes a 6.5% state sales tax and a 2% state tourism tax on short-term accommodations. Cities may add local taxes. State requires a sales tax permit for STR operators.
Annual Tax Estimate for Arkansas
The table below shows estimated annual tax obligations at different nightly rates, assuming 65% occupancy (237 nights/year). Estimates are shown for both the state-level rate and the highest local rate (Hot Springs).
| Nightly Rate | Gross Revenue | State Tax (8.5%) | Hot Springs Tax (13.5%) |
|---|---|---|---|
| $100.00/night | $23,700 | $2,015 | $3,200 |
| $150.00/night | $35,550 | $3,022 | $4,799 |
| $200.00/night | $47,400 | $4,029 | $6,399 |
| $300.00/night | $71,100 | $6,044 | $9,599 |
| $500.00/night | $118,500 | $10,073 | $15,998 |
Estimates assume 65% occupancy. Actual tax may differ based on local exemptions, booking fees, and platform collection.
STR Tax Rates by City in Arkansas
Local taxes significantly impact the total STR tax burden in Arkansas. The table below shows combined state + local rates for 4 cities, sorted by total rate. The highest combined rate is 13.5% in Hot Springs.
| City | Local Tax | Total Rate | Tax on $200/night | Tier | Notes |
|---|---|---|---|---|---|
| Hot Springs | 5.0% | 13.5% | $27.00 | High | Garland County 1% + Hot Springs 3% advertising & promotion tax + 1% city sales tax. |
| Eureka Springs | 5.0% | 13.5% | $27.00 | High | Carroll County 1% + Eureka Springs 2% A&P tax + 2% city tax. Popular tourist destination. |
| Little Rock | 4.0% | 12.5% | $25.00 | High | Pulaski County 1.5% + Little Rock 2.5% hotel/motel tax. |
| Bentonville | 4.0% | 12.5% | $25.00 | High | Benton County 1.5% + Bentonville 2.5% A&P tax. |
How Arkansas Compares to Other States
Below is a comparison of Arkansas with five states that have similar state-level STR tax rates. This comparison helps illustrate where Arkansas stands relative to other states in terms of tax burden, platform collection, and registration requirements.
| State | State Rate | Sales Tax | Lodging Tax | Platform Collects | Registration |
|---|---|---|---|---|---|
| Arkansas (AR) | 8.5% | 6.5% | 2.0% | Yes | Required |
| New Hampshire (NH) | 8.5% | 0.0% | 8.5% | Yes | Required |
| Louisiana (LA) | 8.4% | 4.5% | 4.0% | Yes | Required |
| Alabama (AL) | 9.0% | 4.0% | 5.0% | Yes | Required |
| Delaware (DE) | 8.0% | 0.0% | 8.0% | Yes | Required |
| Georgia (GA) | 9.0% | 4.0% | 5.0% | Yes | Required |
Frequently Asked Questions About Arkansas STR Taxes
What is the short-term rental tax rate in Arkansas in 2026?
The state-level tax rate on short-term rentals in Arkansas is 8.5%, consisting of 6.5% sales tax and 2.0% lodging tax. Local taxes can bring the total to 13.5% in cities like Hot Springs. At $200/night with 65% occupancy, the state-level tax alone is approximately $4,029 per year.
Does Airbnb collect STR taxes in Arkansas?
Yes. Airbnb, Vrbo collect state taxes. However, local and county taxes may not be covered by platform collection. Always verify with your local tax authority what taxes your platform collects on your behalf.
Do I need to register my short-term rental in Arkansas?
Yes. Arkansas requires STR operators to register with the state. This typically includes obtaining a sales tax permit and/or lodging tax registration. Many cities and counties in Arkansas also require local STR permits or business licenses. Check with both state and local authorities for specific requirements.
What is the total STR tax rate in Hot Springs, Arkansas?
The total combined tax rate in Hot Springs is 13.5%, which includes the 8.5% state rate plus 5.0% in local taxes. Garland County 1% + Hot Springs 3% advertising & promotion tax + 1% city sales tax. At $200/night with 65% occupancy, this amounts to approximately $6,399 per year in taxes.
How much will I owe in STR taxes in Arkansas?
Your annual STR tax depends on your nightly rate, occupancy, and location. At the state level (8.5%), a property earning $200/night with 65% occupancy would owe approximately $4,029/year in state taxes alone. In Hot Springs, the total tax at the same rate would be approximately $6,399/year. Use our STR tax calculator for a customized estimate.
Calculate Your Arkansas STR Tax
Use our STR tax calculator to get a personalized estimate of your annual tax obligation in Arkansas. Enter your nightly rate and occupancy to see your projected state and local taxes, or browse all 50 states to compare STR tax rates across the country.