Today is May 26, the anniversary of the Quill v. North Dakota decision of 1992, when the U.S. Supreme Court upheld “the continuing validity” of restricting state sales tax powers only to businesses with property or...
The facts on Arkansas’ Tax Climate
6.9%individual income taxTop rate
6.5%corporate income taxTop rate
$659property taxcollections per capita
Arkansas's Individual Income Tax System
Arkansas's individual income tax system consists of six brackets with a top rate of 6.9%. The top rate ranks 14th highest among states levying an individual income tax. Arkansas's state and local tax collections per person were $896 in 2013, which ranked 30th highest nationally.
50-State Table of Individual Income Tax Rates
Arkansas's Corporate Income Tax System
Arkansas's corporate income tax system consists of six brackets with a top rate of 6.5%. The top rate ranks 24th highest among states levying a corporate income tax. Arkansas's state and local corporate income tax collections per person were $136 in 2013 which ranked 24th highest nationally.
50-State Table of Corporate Income Tax Rates
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 2.8%. Arkansas's state and local governments collect $1,303 per person in general sales taxes and $466 per person in excise taxes, for a combined figure of $1,769, which ranks 12th highest nationally. Arkansas's gasoline tax stands at 21.8 cents per gallon, 38th highest nationally, while its cigarette tax stands at $1.15, 31st highest nationally.
50-State Table of State and Local Sales Tax Rates
Arkansas Property Tax Collections Relatively Low
Arkansas's state and local governments collected approximately $659 per person in property taxes in 2013, which ranks 48th nationally.
For 50-state tables of property tax collections, visit our latest web edition of Facts & Figures, or download our mobile app for Apple and Android.
Tax Freedom Day Arrives on April 13th in Arkansas
Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Arkansas taxpayers have to work until April 13th (12th earliest nationally) to pay their total tax bill.
Arkansas's State and Local Tax Burden Ranks 17th
Arkansas's 2016 Business Tax Climate Index Ranks 38th
Arkansas ranks 38th on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (42nd), individual income taxes (29th), sales taxes (43rd), unemployment insurance taxes (43rd), and taxes on property (27th), including residential and commercial property.
State Business Tax Climate Index (full study)
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