Taxes / State tax rules / Arkansas
Selling on eBay, Poshmark or Etsy from Arkansas: sales tax and 1099-K rules
Since July 1, 2019, Ark. Code § 26-52-111 has required a marketplace facilitator with more than $100,000 in sales or 200 transactions into Arkansas in the current or previous year to collect and remit Arkansas sales or use tax on the sales it facilitates, and a facilitated sale counts as the facilitator's sale, not the seller's, for that test. For Form 1099-K, Arkansas has a rule for 1099s in general: the Department of Finance and Administration says all 1099 types required to be filed with the IRS are required to be filed with Arkansas, with a $2,500 filing threshold when no Arkansas income tax is withheld; it doesn't name the 1099-K or set a separate 1099-K test.
General information, not tax advice. Check with a tax professional about your own situation.
Checked against the official pages listed below on .
Arkansas in short
- General sales tax:
- Yes, 6.5% state rate
- Marketplace facilitator law:
- Yes: Ark. Code Ann. § 26-52-111 (Act 822 of 2019, Section 19), since Jul 1, 2019
- When a marketplace must collect:
- aggregate sales into Arkansas of more than $100,000, or 200 transactions, in the previous or current calendar year (§ 26-52-111(a))
- Form 1099-K:
- State figure for copies of Forms 1099: $2,500 for filing a 1099 with Arkansas when no Arkansas income tax is withheld
Who collects the tax on a marketplace sale
A remote seller or marketplace facilitator over the threshold collects and remits Arkansas sales or use tax on the sales it makes or facilitates for delivery into Arkansas. Act 822's emergency clause made the section effective July 1, 2019, and the duty is not applied retroactively (§ 26-52-111(c)).
If you sell only through marketplaces
Under § 26-52-111(b), a sale made through a marketplace facilitator is not a sale of the marketplace seller when deciding whether the seller passes the $100,000 or 200-transaction test, and the department audits the facilitator, not the marketplace seller, for facilitated sales (§ 26-52-111(e)). The DFA pages checked for this page don't say whether an Arkansas-based seller who sells only through marketplaces needs its own sales tax permit.
Registration, resale certificates and what changes when you also sell direct have their own page: Arkansas: seller's permit and resale certificate rules.
The law: Ark. Code Ann. § 26-52-111 (Act 822 of 2019, Section 19), effective .
"The department shall not audit marketplace sellers for sales facilitated by a marketplace facilitator except to the extent the marketplace facilitator seeks relief from liability under subsection (f) of this section."
Sources: Act 822 of 2019 (SB 576); Remote Sellers and Marketplace Facilitators.
Arkansas's sales tax
Arkansas's state sales and use tax rate is 6.5%, in effect since July 1, 2013, according to the Department of Finance and Administration (DFA) rate table. Cities and counties levy their own sales and use taxes on top, which the DFA publishes separately.
Sources: State Sales & Use Tax Rates.
Form 1099-K: Arkansas and the federal test
The DFA's 2025 filing specifications say Arkansas participates in the combined federal/state 1099 program, that all 1099 record types required to be filed with the IRS are required to be filed with Arkansas, and that the dollar threshold for filing is $2,500 when no Arkansas income tax is withheld. The specification covers 1099s generally and doesn't name the 1099-K, so ask the DFA how a platform applies it to a 1099-K the federal test doesn't require.
| Test | Dollar amount | Transactions | Wording |
|---|---|---|---|
| Arkansas (copies of Forms 1099) | $2,500 | No count | $2,500 for filing a 1099 with Arkansas when no Arkansas income tax is withheld |
| Federal (IRS) | Over $20,000 | More than 200 | Over $20,000 in more than 200 transactions, through one app or marketplace in a calendar year |
"The dollar threshold for filing, provided no Arkansas income tax is withheld, is 2,500.00."
"All 1099 record types required to be filed with the Internal Revenue Service are required to be filed with the State of Arkansas."
The federal test, for comparison: the IRS says a payment app or online marketplace must send a Form 1099-K when payments for goods or services total over $20,000 in more than 200 transactions, and adds: "However, they may send you a Form 1099-K with lower amounts and/or transactions." (Understanding your Form 1099-K, reviewed ). The Instructions for Form 1099-K count both parts for the calendar year, through each platform separately, and say the box 1a gross amount is figured without adjustments for credits, discounts, fees, refunds or shipping, so a 1099-K figure is not the same as profit. More on the federal rule in Form 1099-K for resellers.
Sources: 2025 Specifications for Filing Forms W-2/1099 Electronically.
Worked examples
$3,000 of sales in 120 orders
An Arkansas seller with $3,000 of gross sales in 120 transactions on one platform in 2025 is far below the federal test (over $20,000 in more than 200 transactions). The DFA's rule covers the 1099 types required to be filed with the IRS, with a $2,500 threshold for filing them with Arkansas; it doesn't say a platform must file with Arkansas a 1099-K the IRS doesn't require, so compare any form that arrives with the platform's sales report.
Tax on a $25 sale to a Little Rock buyer
The marketplace, as the facilitator over the threshold, collects the tax: at the 6.5% state rate alone that is $25 x 6.5% = $1.625, about $1.63, plus whatever city and county tax applies at the delivery address. Under § 26-52-111(b) the sale is the facilitator's, not yours, for the $100,000 or 200-transaction test.
Edge cases and details
- If Arkansas income tax is withheld on a payment, the DFA specification says filing is required regardless of the threshold amount or current residence.
- The facilitator is relieved of liability for tax it fails to collect because of incorrect or insufficient information from the marketplace seller, unless the two are related (§ 26-52-111(f)).
- The DFA describes remote sellers and marketplace facilitators as out-of-state sellers without a physical presence in Arkansas; the statute's collection duty in § 26-52-111(a) is written for any marketplace facilitator over the threshold.
- Arkansas is a member of the Streamlined Sales Tax Governing Board, the DFA says, which offers simplifications for remote sellers.
What to do
- Keep each marketplace's sales report; it shows the gross figure any 1099-K would report.
- If you also sell to Arkansas buyers through your own website or in person, those sales are outside § 26-52-111's marketplace rule; ask the DFA or a tax professional how they are handled.
- If a 1099-K arrives for less than the federal threshold, compare it with your sales report and check with a tax professional about how it fits your returns.
Common questions
Why did I get a 1099-K for under $20,000 in Arkansas?
The IRS says platforms may send a 1099-K for less than the federal threshold. The DFA's filing specifications have the 1099 types required to be filed with the IRS filed with Arkansas too, with a $2,500 threshold when no Arkansas tax is withheld; they don't name the 1099-K or set a lower 1099-K test.
Do my marketplace sales count toward Arkansas's $100,000 threshold for me?
No. Ark. Code § 26-52-111(b) says a sale made through a marketplace facilitator is the facilitator's sale, and not the marketplace seller's, when deciding whether a seller meets the $100,000 or 200-transaction test.
Related
- Every state on one table: sales tax, marketplace facilitator laws and 1099-K rules
- Arkansas: seller's permit and resale certificate rules
- Arizona: sales tax and 1099-K rules
- California: sales tax and 1099-K rules
- Form 1099-K for resellers: the federal test
- Do eBay's fees apply to the sales tax a buyer pays?
- Where each selling app keeps its sales report
General information, not tax advice
This page summarizes Arkansas's own published pages and statutes as read on , and the IRS's 1099-K pages. It doesn't say what you should file, register for or pay. Rules depend on your situation and change: check with a tax professional, or with the state's revenue department.
Sources
Official pages this page is built from, with the day each was read.
- Arkansas General Assembly: Act 822 of 2019 (SB 576); read . Section 19 adds § 26-52-111: thresholds, facilitated sales counted to the facilitator, no retroactivity, audit and liability rules; emergency clause effective July 1, 2019.
- Arkansas Department of Finance and Administration: Remote Sellers and Marketplace Facilitators; read . Act 822 summary, $100,000 or 200 transactions, Streamlined membership.
- Arkansas Department of Finance and Administration: State Sales & Use Tax Rates; read . State sales and use tax rate 6.500% since 07/01/2013.
- Arkansas Department of Finance and Administration: 2025 Specifications for Filing Forms W-2/1099 Electronically, dated ; read . All 1099 types filed with the IRS also filed with Arkansas; $2,500 threshold without Arkansas withholding.
- IRS: Understanding your Form 1099-K, reviewed . The federal 1099-K test.
- IRS: Instructions for Form 1099-K, reviewed . Both parts of the federal test counted for the calendar year.
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