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The facts on Arkansas’ Tax Climate
7%individual income taxTop rate
6.5%corporate income taxTop rate
$619property 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 13th highest among states levying an individual income tax. Arkansas's state and local income tax collections per person were $719 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 23rd lowest among states levying a corporate income tax. Arkansas's state and local corporate income tax collections per person were $129 in 2012 which ranked 22nd 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 2.69%. Arkansas's state and local governments collect $1246 per person in general sales taxes and $457 per person in excise taxes, for a combined figure of $1703, which ranks 12th highest nationally. Arkansas's gasoline tax stands at 21.8¢ (15th 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 $619 per person in property taxes, which ranks 3rd lowest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 7th 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 2013, Arkansas taxpayers worked until April 7th (12th earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Texas, April 10th (ranked 20th earliest nationally); Oklahoma, April 6th (ranked 9th earliest nationally); Missouri, April 8th (ranked 14th earliest nationally); Tennessee, April 2nd (ranked 3rd earliest nationally); Mississippi, March 29th (ranked earliest nationally); and Louisiana, March 29th (ranked 2nd earliest nationally).
Arkansas's State and Local Tax Burden In Line with National Average
Arkansas's 2010 tax burden of 10.03% ranks 15th highest out of 50 states, and is above the national average of 9.9%. Arkansas's taxpayers pay $3285 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 2014 Business Tax Climate Index Ranks 35
Arkansas ranks 35th 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, 11th, Oklahoma, 36th, Missouri, 16th, Tennessee, 15th, Mississippi, 17th, and Louisiana, 33rd.
50-State Comparison of Business Tax Climates (data only) (2013)
2014 State Business Tax Climate Index (full study)
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