Sales Tax Rates

The sales tax on purchases made within the City limits is collected by the State of Arkansas who, in turn, passes back earmarked amounts to local governments such as counties and cities. The total sales tax rate is controlled by the following three (3) entities and their individual sales tax rates:

  • City of Fayetteville - 2.00%
  • Washington County - 1.25%
  • State of Arkansas - 6.50%
  • TOTAL: 9.75%

Hotel/Motel/Restaurant (HMR) Tax

In addition to the taxes listed above, the City of Fayetteville currently has a 2.00% Hotel/Motel Restaurant (HMR) tax on establishments engaged in the business of renting, leasing or otherwise furnishing hotel or motel accommodations, or selling prepared food for consumption, on or off premises.

  • City of Fayetteville - 2.00%
  • Washington County - 1.25%
  • State of Arkansas - 6.50%
  • Hotel/Motel/Restaurant Tax - 2.00% - paid directly to the City of Fayetteville
  • TOTAL: 11.75%

Supplemental Beverage (SB) Tax

The City of Fayetteville currently has a 5.00% Supplemental Beverage (SB) tax on gross receipts from the sale of alcoholic beverages. Wine, beer, light wine, and malt liquors containing less than 5% alcohol by weight, shall not be subject to the supplemental beverage tax as they fall under the HMR tax. Please note that the State of Arkansas also collects additional taxes for supplemental beverages.

If you have specific questions about the State of Arkansas Tax, you may contact the State Sales Tax Division. If you have questions concerning the HMR tax, you may contact the City of Fayetteville Accounting Division at 479-575-8281.