Arkansas Contractor Sales Tax 2026

Arkansas sales tax rate for contractors

• Combined rate: 6.5% + local (~9.5% combined avg)
• Construction labor taxable: NO - real property labor is exempt
• Tax authority: Arkansas Department of Finance and Administration

How Arkansas treats contractor labor

Real property construction labor exempt. Repair labor on tangible personal property is taxable.

Arkansas-specific rules

Both 10-day pre-work and 10-day pre-lien notices are required. Repair labor on TPP is taxable.

Arkansas mechanics lien rights

Beyond sales tax, Arkansas contractor billing must respect the mechanics lien deadline of 120 days from last work. Preliminary notice: 10-day notice required before work commences for residential of 4 units or less.

Arkansas contractor licensing

Arkansas Contractors Licensing Board - required for licensed work. $100 application + exam. Board: https://aclb.arkansas.gov.

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Arkansas contractor resources by trade

• Arkansas HVAC Cost
• Arkansas Plumbing Cost
• Arkansas Electrical Cost
• Arkansas Roofing Cost
• Arkansas Painting Cost
• Arkansas Concrete Cost