Arkansas eliminates state sales tax on groceries in 2026
Arkansas will eliminate its state sales and use tax on groceries beginning January 1, 2026. The change is the result of the Grocery Tax Relief Act and applies to food and food ingredients sold for home consumption. County and municipal grocery taxes are not affected.
Written by Ryan Pinkham
VP of GTM
Published
Key points
- Arkansas will no longer impose state sales tax on groceries.
- The change applies to food and food ingredients sold for home consumption.
- Local grocery taxes remain in effect and must still be collected where applicable.
What’s changing
- Previous rule: Groceries were subject to Arkansas state sales tax.
- New rule: Groceries are fully exempt from state sales and use tax.
- Effective date: January 1, 2026.
The exemption applies only at the state level. Any county or city grocery taxes continue to apply based on the delivery or point-of-sale location.
Why this matters for sellers
Although the state grocery tax is being eliminated, sellers must still evaluate grocery transactions at the local level. In many Arkansas jurisdictions, county or municipal grocery taxes remain in place, which means grocery sales may still be partially taxable depending on location.
Sellers that operate in multiple Arkansas jurisdictions or ship groceries to different addresses will need to ensure systems correctly apply local grocery tax rules beginning January 1, 2026.
Who this affects
- Grocery stores and food retailers in Arkansas
- Remote sellers shipping groceries into Arkansas
- Sellers operating in cities or counties with local grocery taxes
- Accounting teams managing Arkansas sales tax compliance
Next steps for sellers
- Calculation: Remove Arkansas state sales tax from grocery transactions starting January 1, 2026.
- Review: Confirm whether local grocery taxes apply at customer locations.
- Reporting: Ensure returns reflect the removal of state tax while continuing to report any applicable local grocery taxes.
Official sources:
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1.
Arkansas State Legislature Source link
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2.
Governor of Arkansas Official Page Governor Sanders Announces Grocery Tax Relief Act, Good Neighbor Act. Source link
Disclaimer
TaxCloud provides sales tax compliance solutions. We do not provide legal or tax advice. For questions about your specific tax situation or filing requirements, we recommend consulting a qualified sales tax accountant.
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