Credit card processing and merchant services in Little Rock, AR
Little Rock sales carry 8.625% tax on general merchandise: 6.5% state, 1% Pulaski County and 1.125% city. Groceries lost their state share in January 2026.
Little Rock's sales tax comes in three layers. Arkansas charges 6.5%, Pulaski County adds 1% and the city adds 1.125%, according to the Department of Finance and Administration's July to September 2026 rate table. That's 8.625% on general merchandise. Groceries no longer carry a state share, which dropped to 0% on January 1, 2026, so any tax on a food line now comes from the county and the city.
DFA puts out a fresh local rate table every quarter and keeps a page of local rate changes. Look at it when each new quarter starts, and again before you add a second location.
The Census Bureau estimated 206,427 people in Little Rock in July 2025. If you bill clients by invoice instead of ringing them up at a counter, a virtual terminal takes cards by phone, emailed invoice, payment link or recurring billing. Keyed and online payments usually carry higher interchange than a chip or tap sale in person, so the pricing model matters more for an invoicing business than for a coffee shop. Our post on card-not-present transactions explains why.
On surcharges, Arkansas has no statute we've found, and the Attorney General's office says they apply to credit cards only and must follow network rules. A 3% fee on a $2,000 invoice is $60, which is real money to you and to the client paying it. Before adding one, see what interchange-plus pricing would do to that same invoice. A free statement review runs the numbers on your own statement.
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Common questions
What is the sales tax rate in Little Rock?
8.625% on general merchandise: the 6.5% Arkansas rate, 1% for Pulaski County and 1.125% for the City of Little Rock, per DFA's July to September 2026 table. The state's share on groceries has been 0% since January 1, 2026, so set food up on its own tax code using the local rates.
How often do Arkansas local sales tax rates change?
DFA publishes its city and county rate table by quarter and keeps a separate page listing local rate changes. Check the new table each quarter and before you open another location, then update your terminals and your online checkout on the same day.
Can a Little Rock business add a card fee to invoices?
On credit cards, yes, within card network rules. Arkansas has no surcharge statute we've found, and the Attorney General's page says surcharges apply only to credit cards. Visa caps them at 3% or your cost and Mastercard at 4% or your cost. Debit cards can't be surcharged, so your invoicing setup needs to tell the two apart.
Why do invoice payments cost more to process than tapped cards?
Payments where the card number is keyed in or typed online are card-not-present transactions, and they usually carry higher interchange than chip or tap payments in person because the fraud risk is higher. On interchange-plus pricing you see that difference line by line. Our post on card-not-present transactions explains the categories.
Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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