Arkansas Sales Tax for Contractors (2026): Who Pays on a Home Remodel
Whether an Arkansas contractor charges sales tax on a home remodel, who pays on materials, and three jobs worked at 6.5%.
Not tax advice. General information from each state's revenue department, checked Oct 29, 2026. Rates shown are the state rate; city and county tax is extra where it applies. The facts of your job and contract can change the answer; for a specific job, ask a tax professional in your state.
The rule in Arkansas
Materials only
You pay tax on materials. Labor on walls, doors, windows, pipes and other nonmechanical parts isn't taxed. Installing flooring, or installing or repairing mechanical and electrical items, in an existing home is taxable.
6.5%
6.5% plus local
Itemizing or time and materials
No change for materials built into the home.
None
Source: 26 CAR 30-1003 (formerly GR-21) (Rule copy; DFA FAQ for the rate)
“All contractors are deemed to be consumers or users”
Three jobs, worked
| Job | Customer | You pay |
|---|---|---|
| Bathroom $12,000 job, $5,000 materials | $0 | $325 |
| Kitchen $40,000 job, $15,000 materials | $0 | $975 |
| Addition $90,000 job, $35,000 materials | $0 | $2,275 |
On the kitchen: The customer pays no sales tax. You pay $975 on $15,000 of materials at 6.5%, and build it into the price.
Also check
- HVAC: if the ductwork isn't billed separately from the unit, the whole charge is taxable.
Arkansas sales tax questions
Do contractors charge sales tax in Arkansas?
Usually not. You pay tax on materials and charge none for walls, doors, windows and pipes. Flooring and mechanical or electrical work in an existing home is taxable, so you collect tax on that work.
Is labor taxable in Arkansas?
Labor on walls, doors, windows, pipes and other nonmechanical parts of a home isn't taxed. Installing flooring, or installing or repairing mechanical and electrical items in an existing home, is taxable.
What rate do contractors pay on materials in Arkansas?
6.5% state rate, plus local tax where you buy the materials.
Compare other states
How we checked
We read each state's sales tax rule for construction contractors on the revenue department or legislature site, and its 2026 state rate. Two independent research passes covered all 50 states and DC, and a third reviewer checked the result. Where a state's own page would not load, the row names the copy we read. Last checked .
This guide explains the general rule for remodeling an owner-occupied home. It is not tax advice.