Arkansas state income tax rates and calculator
Arkansas rolled out a slew of income tax cuts in the past few years, including a move to lower the top individual income tax rate to 3.9 percent for income earned in the 2024 tax year, to be reported on tax returns in 2025.
Arkansas personal income tax rates for 2024
Arkansas’ personal income tax rates range from 0 percent to 3.9 percent for 2024. The state uses a graduated, or progressive, system, similar to the U.S. tax system.
However, the Arkansas system has a slight twist: There are two sets of tax brackets — one set of tax brackets for people whose net income is $92,300 or less, and a separate set of tax brackets for taxpayers whose net income exceeds $92,300.
In any graduated system, where there are a series of tax brackets rather than one flat tax across all income levels, taxpayers must calculate their tax bill for each bracket, starting at the first bracket and moving up until they reach the bracket that matches their total taxable income. Then they must add up their tax bill for each bracket — the total is their tax owed.
In this type of graduated or progressive system, your marginal tax rate is the top rate you pay, but your effective, or actual, tax rate is a blend of tax rates, and is generally lower than your marginal rate.
For example, a single filer in Arkansas with $25,000 in taxable income in 2024 will owe no taxes on their first $5,500 of income, and then will owe a 2 percent rate on income from $5,500 to $10,900, then a 3 percent rate on income from $10,900 to $15,600, then a 3.4 percent rate on income from $15,600 to $25,000. Then that person has to add up their tax bill for each bracket to get their total tax for the year. Read more about marginal vs. effective tax rates.
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Arkansas income tax rates for 2024 |
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| Tax rate | All filing statuses |
| 0% | $0 to $5,500 |
| 2% | $5,500 to $10,900 |
| 3% | $10,900 to $15,600 |
| 3.4% | $15,600 to $25,700 |
| 3.9% | $25,700 to $92,300 |
Source: Arkansas Department of Finance and Administration
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Arkansas income tax rates for 2024 |
|
| Tax rate | All filing statuses |
| 2% | $0 to $4,600 |
| 3.9% | $4,600+ |
Who has to file Arkansas state taxes?
Arkansas residents who meet a certain income threshold must file a state income tax return.
Who must file a state income tax return in Arkansas (2024 tax year)
| Filing status | Number of dependents | Income threshold |
|---|---|---|
| Single | N/A | $14,266 |
| Head of household or surviving spouse | 0 or 1 | $20,283 |
| Head of household or surviving spouse | 2 or more | $24,177 |
| Married filing jointly | 0 or 1 | $24,058 |
| Married filing jointly | 2 or more | $28,954 |
| Married filing separately | N/A | $9,410 |
Non-residents and part-year residents who received income from any Arkansas source during the tax year also have to file a state tax return.
Income tax returns are due April 15, unless that day falls on a weekend or holiday, in which case the due date is the next business day.
Is there a personal exemption or standard deduction in Arkansas?
Arkansas offers a standard deduction that is determined by your filing status and other factors (see below). There isn’t a personal exemption but there are exemptions for retirement income, military income and military retirement.
Arkansas also offers a tax credit of $29 for single taxpayers or married taxpayers filing separately, or $58 for married taxpayers filing jointly or head of household filers. There is also a $29 credit per dependent, a $29 credit for taxpayers over 65 who don’t claim the retirement income exemption, and a $29 credit for the legally blind.
There are also credits for specific things such as child and dependent care expenses, adoption, individuals with developmental disabilities, business incentives and state political contributions.
Arkansas standard deduction amounts for 2024
| Filing status | Standard deduction |
|---|---|
| Single | $2,410 |
| Head of household | $2,410 |
| Married filing jointly | $4,820 |
| Married filing separately | $2,410 |
Arkansas sales tax rate
Arkansas levies a 6.5 percent state sales tax.
In addition to the state sales tax, cities and counties have the authority to enact additional local sales and use taxes if they are approved by the voters in those areas. You can find your local sales and use tax rates on the Office of Excise Tax Administration’s local tax lookup tool. The average combined state and local sales tax rate in Arkansas is 9.45 percent, according to the Tax Foundation.
Other things to know about Arkansas taxes
- Arkansas property taxes are collected by county. The effective property tax rate is 0.53 percent, on average, for owner-occupied homes, according to the Tax Foundation. Homeowners aged 65 and older or disabled who qualify for the homestead tax credit can have the taxable assessed value of their properties frozen, which can provide additional property tax relief.
- The state has no estate tax or inheritance tax.
- The corporate tax rate is graduated, ranging from 1 percent to 4.3 percent, based on income, for the 2024 tax year. The top corporate tax rate was lowered as part of the state’s 2024 tax cuts.
- The gasoline tax is 24.7 cents per gallon through September 2025.
- The cigarette tax is $1.15 per pack.