Arkansas Vacation Rental Tax Calculator

Estimate your property tax, lodging tax, federal & state income tax, and depreciation deductions for your Arkansas vacation rental property.

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Tax Types

What Taxes Apply to Arkansas Short-Term Rentals?

Arkansas STR hosts are subject to several types of taxes. Understanding which ones apply — and who collects them — is the first step toward compliance.

Sales Tax

Arkansas applies its state sales tax to short-term rental stays — currently at a base rate that contributes to combined lodging rates of 15%. Cities may add local sales tax on top.

Occupancy / Transient Lodging Tax

Arkansas's lodging/occupancy tax is the primary STR-specific tax. Combined rates reach 15% in Hot Springs and 15% in Eureka Springs. This includes state, county, and city-level components.

Tourism / Convention Center Tax

Some Arkansas cities levy additional tourism, convention center, or special district taxes that add 1–3% to your total rate. In Hot Springs, the combined rate of 15% already includes these surcharges.

Federal & State Income Tax

Net rental profit is subject to both federal income tax (10–37% in 2026) and Arkansas's state income tax at 4.4%. Reported on Schedule E (Form 1040). Deduct expenses like mortgage interest, repairs, and depreciation.

Property Tax

Arkansas's average effective property tax rate is 0.62%. Assessed annually on market value. STRs may face higher assessments in some jurisdictions.

Important

Does Airbnb Collect and Remit Taxes in Arkansas?

Airbnb has agreements to collect and remit taxes in Arkansas — but coverage is not always complete.

Airbnb collects Arkansas's state-level lodging tax in most jurisdictions.
In Hot Springs and Eureka Springs: Airbnb may or may not collect all county/city taxes.
Rural areas: You're often fully responsible for all local tax collection.
Even where Airbnb collects, you may owe additional local levies or special district taxes.

Bottom line: Never assume Airbnb handles all your Arkansas tax obligations. Verify with your local tax authority.

Compliance

Do You Need a Tax Permit in Arkansas?

In most Arkansas jurisdictions, yes. Common permits and registrations required:

State sales tax permit / seller's permit
City or county business license
Short-term rental operating permit
Lodging tax registration certificate

Consequences of non-compliance

5–25% penalties on unpaid taxes in Arkansas

Revocation of rental permit

Liens on your property

Tax Overview

Short-Term Rental Taxes in Arkansas

Key tax facts every vacation rental host in Arkansas should know.

State lodging tax: 6.5%

State income tax: up to 4.4%

Property tax rate: ~0.62%

Tourism improvement district taxes add 2–3% in resort areas

City Breakdown

Lodging Tax Rates by City in Arkansas

Combined lodging/occupancy tax rates for major vacation rental markets in Arkansas.

CityCombined Rate

Hot Springs

6.5% state + 3% county + 3% city + 2.5% tourism

15%

Eureka Springs

6.5% state + 3% county + 3% city + 2.5% tourism

15%

Little Rock

6.5% state + 3% county + 5% city

14.5%

Rates are estimates based on 2024-2025 data. Always verify with your local tax authority.

FAQs About Arkansas Vacation Rental Taxes

Common questions about short-term rental taxes, permits, and compliance in Arkansas.

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