If you sell products to customers in Arkansas, you may be required to collect and remit sales tax even if your business is located outside the state.
Arkansas’s economic nexus threshold is more than $100,000 in sales or 200 transactions into the state during the current or previous calendar year. Meeting either threshold can create an obligation for a remote seller.
Arkansas Economic Nexus at a Glance
| Rule | Arkansas Rule |
| Economic nexus threshold | More than $100,000 or 200 transactions |
| Measurement period | Current or previous calendar year |
| Transaction threshold | 200 transactions |
| Marketplace sales included in seller’s threshold? | Generally no |
| Marketplace facilitator rules | Yes |
| Tax authority | Arkansas Department of Finance and Administration (DFA) |
What Is Economic Nexus in Arkansas?
Economic nexus allows Arkansas to require an out-of-state business to collect and remit sales tax based on its level of activity in the state, even without a physical presence there.
Arkansas began enforcing its economic nexus requirements for remote sellers in 2019.
This means ecommerce businesses should monitor both their Arkansas sales revenue and number of transactions.
What Is the Economic Nexus Threshold in Arkansas?
A remote seller generally establishes economic nexus if, during the current or previous calendar year, it has:
- More than $100,000 in Arkansas sales, or
- 200 or more separate transactions into Arkansas.
You only need to meet one of these thresholds.
The transaction threshold can be particularly important for businesses selling lower-cost products. For example, a seller could reach 200 Arkansas transactions without coming close to $100,000 in revenue.
What Sales Count Toward Arkansas Economic Nexus?
Arkansas’s threshold applies to sales made by the remote seller into the state.
For ecommerce businesses, this can include direct sales through:
- Shopify
- WooCommerce
- Your own ecommerce website
- Other direct sales channels
Businesses should monitor both the value and number of their Arkansas transactions throughout the year.
Do Amazon Sales Count Toward Arkansas Economic Nexus?
Generally, sales made through a qualifying marketplace facilitator are excluded when determining whether an individual remote seller has crossed Arkansas’s economic nexus threshold. Marketplace facilitators such as Amazon, eBay, Etsy and Walmart are generally responsible for collecting and remitting Arkansas sales tax on the transactions they facilitate.
For example, if you have $150,000 of Amazon sales but only $60,000 and fewer than 200 transactions through Shopify, you generally wouldn’t establish economic nexus based solely on the Amazon marketplace sales. However, sellers should separately consider whether they have physical nexus in Arkansas.
Can You Have Arkansas Nexus Below $100,000?
Yes, the economic nexus thresholds apply to remote sellers without physical presence in Arkansas.
Physical presence can potentially create nexus regardless of your sales volume. This can include:
- An office or business location
- Employees working in Arkansas
- Inventory stored in the state
- A warehouse or fulfilment location
- Certain other in-state business activities
This means a business with only $20,000 of Arkansas sales could still have a sales tax obligation if it has physical presence in the state.
How Does Arkansas Sales Tax Work?
Arkansas has a 6.5% state sales tax rate, with additional city and county taxes that vary by location. For remote sellers, the applicable tax generally depends on where the product is delivered. This means a customer in Little Rock may pay a different combined rate from a customer elsewhere in Arkansas.
Once registered, ecommerce businesses should ensure their sales platform is configured to calculate the correct tax based on the customer’s delivery location.
What Should You Do After Crossing the Arkansas Nexus Threshold?
If you exceed $100,000 in qualifying Arkansas sales or reach 200 transactions:
- Confirm when the threshold was reached.
- Check whether you already have physical nexus.
- Register for an Arkansas sales tax account.
- Configure your ecommerce platform to collect the appropriate tax.
- Begin filing and remitting sales tax as required.
Arkansas Economic Nexus Examples
Shopify seller:
A remote business has $125,000 of direct Shopify sales into Arkansas. It exceeds the $100,000 threshold and should review its registration requirements.
High-volume seller:
A business has only $15,000 of Arkansas sales but completes 220 separate transactions. It meets the 200-transaction threshold and can therefore establish economic nexus.
Amazon seller:
A business has $200,000 of sales through a qualifying marketplace facilitator but only $30,000 and fewer than 200 direct Arkansas transactions. The marketplace generally handles tax collection on its sales, and those facilitated sales are generally excluded from the individual seller’s economic nexus calculation.
What If You Should Have Registered Previously?
If you exceeded Arkansas’s economic nexus threshold in a previous period but didn’t register, you could have outstanding sales tax liabilities, together with applicable penalties and interest.
Depending on your circumstances, a Voluntary Disclosure Agreement (VDA) may help resolve historical sales tax liabilities and potentially provide benefits such as penalty relief.
It’s important to investigate your options before being contacted by the Arkansas Department of Finance and Administration
FAQs
What is the economic nexus threshold in Arkansas?
Arkansas’s threshold is generally more than $100,000 in sales or 200 transactions during the current or previous calendar year.
Does Arkansas still have a 200-transaction threshold?
Yes, unlike a growing number of states that have removed their transaction thresholds, Arkansas continues to use a 200-transaction test.
Do I need to meet both Arkansas nexus thresholds?
No, exceeding the sales threshold or reaching the transaction threshold can establish economic nexus.
Do Amazon sales count toward Arkansas’s economic nexus threshold?
Generally, sales made through a qualifying marketplace facilitator are excluded when determining whether an individual remote seller has crossed Arkansas’s economic nexus threshold.
Can I have Arkansas nexus without reaching $100,000?
Yes, you can establish economic nexus by reaching 200 transactions. Physical presence can also create nexus independently of either economic threshold.
Final Thoughts
Arkansas’s economic nexus rules require businesses to monitor both sales revenue and transaction volume. A remote seller can establish nexus by exceeding $100,000 in Arkansas sales or reaching 200 transactions, so even businesses with relatively low revenue can be affected.
Marketplace and direct sales should be tracked separately, while physical presence should also be considered as it can create an obligation regardless of the economic thresholds.
RJM Tax Exemption can help you determine whether you have nexus in Arkansas and assist with sales tax registration, filing and Voluntary Disclosure Agreements where required.
Last updated: August 2026. Sales tax rules can change. Always check current Arkansas Department of Finance and Administration guidance when determining your obligations.
