Sales tax on labor in Arkansas: taxed on repairs to things, not on new construction; building repairs and installation depend on the job

Repairing a thing in Arkansas

Taxed. Repair labor is taxed on a long list of things: appliances, motors, machinery, electrical devices, flooring and more. Parts and labor are both taxed.

• “The tax applies to the enumerated services performed on the items listed in 26 CAR § 30-502(a)(1) whether or not the items are affixed to real property.” — 26 CAR § 30-502 Services subject to tax — Taxable services (Code of Arkansas Rules), page date: Code of Arkansas Rules effective January 1, 2025

Repairing a home or building in Arkansas

It depends. Repair of the passive parts of a building (doors, pipes and plumbing fixtures) is not taxed. Repair or replacement of mechanical or electrical equipment in the building (water heaters, garbage disposals, ceiling fans, garage door motors and appliances) is taxed — labor and parts. What it turns on: passive building component (not taxed) vs. mechanical/electrical item (taxed)

• “For example, initial installation in existing structures and the repair or replacement of dishwashers, stoves, ovens, refrigerators, heating and air conditioning units, garbage disposals, water heaters, ceiling fans, garage door motors, electric signs, washing machines, and dryers is taxable.” — 26 CAR § 30-1003 Contractors (Code of Arkansas Rules), no date on the page
• “This means, generally, that services performed on nonmechanical components or fixtures within or on a building or other improvement to real estate are not taxable;” — 26 CAR § 30-1003 Contractors (Code of Arkansas Rules), no date on the page
• “The installation, replacement, or repair of pipes and nonmechanical plumbing fixtures are not taxable services.” — 26 CAR § 30-1003 Contractors (Code of Arkansas Rules), no date on the page

Installation work in Arkansas

It depends. First-time installation of appliances, motors, machinery, HVAC units, water heaters or flooring in an EXISTING building is taxed — collect tax on the labor. The same installation in a new or substantially remodeled building is not taxed. Installing pipes, plumbing fixtures, wiring, breakers and light fixtures is not taxed. What it turns on: existing building vs. new/substantially modified construction; mechanical/electrical item vs. passive component.

• “For example, initial installation in existing structures and the repair or replacement of dishwashers, stoves, ovens, refrigerators, heating and air conditioning units, garbage disposals, water heaters, ceiling fans, garage door motors, electric signs, washing machines, and dryers is taxable.” — 26 CAR § 30-1003 Contractors (Code of Arkansas Rules), no date on the page
• “The installation, replacement, or repair of pipes and nonmechanical plumbing fixtures are not taxable services.” — 26 CAR § 30-1003 Contractors (Code of Arkansas Rules), no date on the page
• “First-time installation of mechanical or electrical equipment into a newly constructed or substantially modified building or other improvement to real estate is not a taxable service.” — 26 CAR § 30-1003 Contractors (Code of Arkansas Rules), no date on the page
• “Heating and air contractors, electricians, plumbers, or others who install flooring, motors, electrical appliances or devices, household appliances, or machinery for the first time (initial installation) in an existing building should collect tax on the labor charged.” — 26 CAR § 30-519 Services subject to tax — Initial installation (Code of Arkansas Rules), no date on the page

New construction in Arkansas

Not taxed. First-time installation of mechanical or electrical equipment in a new or substantially modified building is not taxed. Contractors pay tax on all materials they use. Landscaping is the exception: landscaping services of both residential and nonresidential property are taxed.

• “First-time installation of mechanical or electrical equipment into a newly constructed or substantially modified building or other improvement to real estate is not a taxable service.” — 26 CAR § 30-1003 Contractors (Code of Arkansas Rules), no date on the page
• “All contractors are deemed to be consumers or users of all tangible personal property including materials, supplies, and equipment used or consumed by them in performing any contract, and the sales of all such property to contractors are taxable sales.” — 26 CAR § 30-1003 Contractors (Code of Arkansas Rules), no date on the page
• “Any person engaged in the business of providing lawn care of nonresidential property or landscaping services of both residential and nonresidential property is required to collect and remit sales tax” — 26 CAR § 30-504 Lawn care and landscaping (Code of Arkansas Rules), no date on the page

Listing labor separately on the bill in Arkansas

It depends. Separately stated installation is untaxed only if the installation is not a listed taxable service; listed services are taxed even if separated.

• “If the contractor repairs or replaces ductwork and repairs or replaces heating or air units, then unless the ductwork labor and material charges are separated from the heating or air unit labor and material charges, the entire charge for the work plus the cost of all materials will be taxable.” — 26 CAR § 30-1003 Contractors (Code of Arkansas Rules), no date on the page
• “Charges for installation services that are taxable under 26 CAR § 30-502 or 26 CAR § 30-519 are taxable even if they are separately stated.” — 26 CAR § 30-901 What constitutes gross receipts — Examples (Code of Arkansas Rules), no date on the page

Materials on jobs in Arkansas

All contractors are consumers of the materials they use and pay tax when buying them; on taxable services (e.g. appliance/HVAC unit work) tax on materials is collected from the customer with the labor.

• “All contractors are deemed to be consumers or users of all tangible personal property including materials, supplies, and equipment used or consumed by them in performing any contract, and the sales of all such property to contractors are taxable sales.” — 26 CAR § 30-1003 Contractors (Code of Arkansas Rules), no date on the page

Trade services Arkansas taxes

The services Arkansas's own pages name as taxed, each in the page's words:

• Landscaping and nonresidential lawn care: “Any person engaged in the business of providing lawn care of nonresidential property or landscaping services of both residential and nonresidential property is required to collect and remit sales tax on the gross receipts derived from these services.”
• Cleaning / janitorial: “Gross receipts tax applies to the service of providing cleaning or janitorial work.”
• Pest control: “Arkansas state and local gross receipts (sales) tax shall apply to the gross proceeds derived from the performance of pest control services.”
• Cleaning of parking lots and gutters: “Cleaning of parking lots and gutters (see 26 CAR § 30-509)”
• “The service of initial installation, alteration, addition, cleaning, refinishing, replacement, and repair of the following items of tangible personal property are subject to the tax:”

Where Arkansas's list of services comes from

• “The tax applies to the enumerated services performed on the items listed in 26 CAR § 30-502(a)(1) whether or not the items are affixed to real property.” — 26 CAR § 30-502 Services subject to tax — Taxable services (Code of Arkansas Rules), page date: Code of Arkansas Rules effective January 1, 2025
• “Any person engaged in the business of providing lawn care of nonresidential property or landscaping services of both residential and nonresidential property is required to collect and remit sales tax” — 26 CAR § 30-504 Lawn care and landscaping (Code of Arkansas Rules), no date on the page
• “Gross receipts tax applies to the service of providing cleaning or janitorial work.” — 26 CAR § 30-506 Cleaning (Code of Arkansas Rules), no date on the page
• “Arkansas state and local gross receipts (sales) tax shall apply to the gross proceeds derived from the performance of pest control services.” — 26 CAR § 30-513 Pest control services (Code of Arkansas Rules), no date on the page

Where Arkansas's own guidance gives two answers

Within the contractor rule, the general line says first-time installation of mechanical/electrical equipment in new construction is not taxed, but the electrical-contractors paragraph lists initial installation in new construction of items like a ceiling fan as taxable.

• “First-time installation of mechanical or electrical equipment into a newly constructed or substantially modified building or other improvement to real estate is not a taxable service.” — 26 CAR § 30-1003 Contractors (Code of Arkansas Rules), no date on the page
• “The initial installation in new or substantially modified construction and the repair or replacement of mechanical or electrical components, such as a ceiling fan, is a taxable service.” — 26 CAR § 30-1003 Contractors (Code of Arkansas Rules), no date on the page

Check with the Arkansas Department of Finance and Administration

Before you bill: check with the Arkansas Department of Finance and Administration. As of November 6, 2026.

This is a plain-words summary of each state's own revenue guidance as of November 6, 2026, not tax advice. Rules have exceptions, and cities and counties can add taxes of their own. Check with the state's tax department, linked on every state's page, before you bill.

Compare Arkansas with every state's answer, or with its neighbours just below.

Next door to Arkansas

• Louisiana: home repair not taxed, installation depends
• Mississippi: home repair depends, installation taxed
• Missouri: home repair not taxed, installation depends
• Oklahoma: home repair not taxed, installation depends
• Tennessee: home repair not taxed, installation depends
• Texas: home repair depends, installation depends

Official sources for Arkansas

• 26 CAR § 30-502 Services subject to tax — Taxable services (Code of Arkansas Rules) — Code of Arkansas Rules effective January 1, 2025
• 26 CAR § 30-1003 Contractors (Code of Arkansas Rules) — no date shown
• 26 CAR § 30-519 Services subject to tax — Initial installation (Code of Arkansas Rules) — no date shown
• 26 CAR § 30-901 What constitutes gross receipts — Examples (Code of Arkansas Rules) — no date shown
• 26 CAR § 30-504 Lawn care and landscaping (Code of Arkansas Rules) — no date shown
• 26 CAR § 30-506 Cleaning (Code of Arkansas Rules) — no date shown
• 26 CAR § 30-513 Pest control services (Code of Arkansas Rules) — no date shown

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