Arkansas State Taxes
Quick Tax Facts
Income Tax: 2% – 4.7%
State Sales Tax: 6.5%
Median Property Tax: $532
Overview
Arkansas is on a mission to make living in the state more attractive and affordable for residents. This includes eventually removing state income taxes, which is a priority for Governor Sara Huckabee Sanders. It recently reduced its top income tax rate to 4.7% and it has one of the lowest median property tax rates in the county. Unfortunately, it’s ranked near the top of the list for most expensive sales taxes (state and local combined).
Arkansas Income Tax
In 2014, the top income tax rate in Arkansas was 7%. Over the last decade, however, Arkansas has steadily decreased its personal income tax rate. For the 2023 tax year, the top tax rate of 4.9% will fall to 4.7%, the lowest in Arkansas’ history. Residents and non-residents are now subject to a tax on their net income at the following rates:
| Net Income of Less Than or Equal to $84,500 |
|---|
| Net Income | Tax Rate |
|---|---|
| $0 – $5,099 | 0% |
| $5,100 – $10,299 | 2% |
| $10,300 – $14,699 | 3% |
| $14,700 – $24,299 | 3.4% |
| $24,300 – $87,000 | 4.7% |
| Net Income Greater Than $84,500 |
|---|
| Net Income | Tax Rate |
|---|---|
| $0 – $4,400 | 2% |
| $4,401 – $8,800 | 4% |
| $8,801+ | 4.7% |
In 2024, the top tax rate will fall to 4.4% (for returns due in 2025).
Who Must File?
Full-year residents are required to file an income tax return (AR1000F) if they meet the following requirements:
| If your marital status is: | And your filing status is: | File if gross income is at least |
|---|---|---|
| Single (includes divorced and legally separated) | Single | $13,850 |
| Head of Household with 0 or 1 dependent | $19,692 | |
| Head of Household with 2+ dependents | $23,473 | |
| Married | Married Filing Jointly with 0 or 1 dependent. | $23,357 |
| Married Filing Jointly with 2+ dependents | $28,111 | |
| Married Filing Separately | $9,140 | |
| Unmarried Surviving Spouse | Surviving Spouse with 1 or no dependents | $19,692 |
| Surviving Spouse with 2+ dependents | $23,473 |
Part-year residents who receive any gross income while living in Arkansas must file a tax return (AR1000NR) regardless of marital status, filing status, and amount earned. Non-residents are also required to file (AR1000NR) if they received any gross income from Arkansas sources.
You can find more information about 2023 tax forms and instructions here.
Arkansas Sales Tax
Arkansas has a state sales tax rate of 6.5%. Local governments can also impose an additional sales tax of up to 6.125%. The average combined sales tax rate (state & city) is 9.47%, which is the third highest in the country. The city of Gillham has the highest combined sales tax rate at 12.625%.
Arkansas is also one of 13 states that still impose a sales tax on groceries (food), though it is the lowest at .125%.
Arkansas Property Taxes
Arkansas does not impose a state property tax. Instead, property taxes are collected at the city and county levels. Arkansas currently has one of the lowest median property tax rates in the country at an average of .52% of a property’s assessed fair market value.
The highest property tax is in Benton County, which collects an average of $929. Calhoun County has the lowest at $275. The state’s median property tax is a modest $532.
| Highest | $929 |
|---|---|
| Median | $532 |
| Lowest | $275 |
Yearly Cost Per Resident
Arkansas Tax Holidays
Each year, the state of Arkansas hosts a sales tax weekend that begins at 12:01 AM on the first Saturday of August and ends at 11:59 PM the following day (Sunday). Items exempt from sales tax (state and local) include:
- Clothing and footwear ($100 or less per item)
- Clothing accessories and equipment ($50 or less per item)
- School supplies (including art supplies and instructional materials)
- Electronic devices commonly used in the course of study
Arkansas Tax Resources
If you need assistance preparing your Arkansas state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.
You can also visit the Arkansas Department of Finance and Administration’s website for additional resources.
- Arkansas Taxpayer Access point (ATAP)
- Check Refund Status
- Individual Income Tax Hotline: 800-882-9275 or 501-682-1100
- ATAP Helpline: 877-280-2827
- Individual Income Tax Forms
