Arkansas Short Term Rental Taxes: A Plain Guide for Cabin Owners
Arkansas is friendly to cabin and vacation rental owners, especially around the Ozarks and the Buffalo National River. There is no statewide short term rental license. But there are several lodging taxes, and knowing who collects which one keeps you out of trouble.
The taxes that apply
| Tax | Rate |
|---|---|
| State sales tax | 6.5% |
| State tourism tax | 2% |
| Local sales tax | about 0.5% to 3.5%, by city and county |
| Local advertising and promotion tax | about 2% to 4% in cities that have one |
Added together, total lodging tax on a rental in Arkansas commonly lands around 13.5% to 14.6% in cities, and lower in rural areas without city taxes.
What Airbnb collects for you
Airbnb collects and sends the state sales tax, the state tourism tax and local sales taxes on bookings made through Airbnb, and city advertising and promotion taxes in a set list of cities. Airbnb is clear that hosts are responsible for any other taxes. Vrbo and Booking.com work differently, so check each platform, and if you take any direct bookings, you collect those taxes yourself.
The one state permit
Arkansas does not have a short term rental license, but a business collecting sales tax needs a sales tax permit from the Department of Finance and Administration, which costs $50 and is applied for online. Hosts whose bookings all go through platforms that collect for them may not need to file everything themselves, but a permit keeps you covered for direct bookings and any tax the platforms do not collect.
Local rules
Many Arkansas cities, like Bentonville and Springdale, have no short term rental ordinance at all, while some tourist towns do. Rural county properties often have the fewest rules. Two 2025 bills that would have set statewide rules for rentals did not pass, so local rules still vary. Check with your city or county before you list.
This guide is general information, not tax advice. A local CPA can confirm exactly what applies to your address.