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The facts on Arkansas’ Tax Climate
7%individual income taxTop rate
6.5%corporate income taxTop rate
$662property taxcollections per capita
Arkansas's Individual Income Tax System
Arkansas's personal income tax system consists of six brackets and a top rate of 7%. That rate ranks 12th highest among states levying an individual income tax. Arkansas's state and local income tax collections per person were $816 in 2012 which ranked 20th lowest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Arkansas's Corporate Income Tax System
Arkansas's corporate income tax system consists of six brackets and a top rate of 6.5%. That rate ranks 25th lowest among states levying a corporate income tax. Arkansas's state and local corporate income tax collections per person were $137 in 2012 which ranked 20th highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Arkansas Sales and Excise Taxes
Arkansas levies a 6.5% general sales or use tax on consumers, which is above the national median of 5.95%. The average local sales tax rate is an additional 2.76%. Arkansas's state and local governments collect $1271 per person in general sales taxes and $465 per person in excise taxes, for a combined figure of $1736, which ranks 14th highest nationally. Arkansas's gasoline tax stands at 21.8¢ (13th lowest nationally), while its cigarette tax stands at $1.15 (22nd lowest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Arkansas Property Tax Collections Relatively Low
Arkansas's state and local governments collected approximately $662 per person in property taxes in 2012, which ranks 3rd lowest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 12th in Arkansas
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2014, Arkansas taxpayers worked until April 12th (19th earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Texas, April 13th (ranked 19th earliest nationally); Oklahoma, April 11th (ranked 15th earliest nationally); Missouri, April 11th (ranked 15th earliest nationally); Tennessee, April 5th (ranked 4th earliest nationally); Mississippi, April 2nd (ranked 2nd earliest nationally); and Louisiana, March 30th (ranked earliest nationally).
Arkansas's State and Local Tax Burden In Line with National Average
Arkansas's 2011 tax burden of 10.3% ranks 12th highest out of 50 states, and is above the national average of 9.8%. Arkansas's taxpayers pay $3405 per capita in state and local taxes.
Arkansas's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Arkansas's 2015 Business Tax Climate Index Ranks 39
Arkansas ranks 39th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Texas, 10th, Oklahoma, 32nd, Missouri, 17th, Tennessee, 15th, Mississippi, 18th, and Louisiana, 35th.
State Business Tax Climate Index (full study)
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