State Individual Income Tax Rates and Brackets, 2023
Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections:
9 min read
Arkansas Tax Rates, Collections, and Burdens
How does Arkansas’s tax code compare? Arkansas has a graduated state individual income tax, with rates ranging from 2.00 percent to 4.40 percent. Arkansas has a graduated corporate income tax, with rates ranging from 1.0 percent to 4.8 percent. Arkansas also has a 6.50 percent state sales tax rate and an average combined state and local sales tax rate of 9.45 percent. Arkansas has a 0.53 percent effective property tax rate on owner-occupied housing value.
Arkansas does not have an estate tax or inheritance tax. Arkansas has a 25 cents per gallon gas tax rate and a $1.15 cigarette excise tax rate. The State of Arkansas collects $4,842 in state and local tax collections per capita. Arkansas has $6,867 in state and local debt per capita and has an 85 percent funded ratio of public pension plans. Overall, Arkansas’s tax system ranks 38th on our 2024 State Business Tax Climate Index.
Each state’s tax code is a multifaceted system with many moving parts, and Arkansas is no exception. The first step towards understanding Arkansas’s tax code is knowing the basics. How does Arkansas collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2024: How Does Your State Compare?
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Featured Articles
State and Local Sales Tax Rates, Midyear 2023
Compare the latest 2023 sales tax rates as of July 1st. Sales tax rate differentials can induce consumers to shop across borders or buy products online.
8 min read
State Corporate Income Tax Rates and Brackets, 2023
New Jersey levies the highest top statutory corporate tax rate at 11.5 percent, followed by Minnesota (9.8 percent) and Illinois (9.50 percent). Alaska and Pennsylvania levy top statutory corporate tax rates of 9.40 percent and 8.99 percent, respectively.
6 min read
Facts & Figures 2023: How Does Your State Compare?
Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
2 min read
Unpacking the State and Local Tax Toolkit: Sources of State and Local Tax Collections (FY 2020)
The mix of tax sources states choose can have important implications for both revenue stability and economic growth, and the many variations across states are indicative of the different ways states weigh competing policy goals.
29 min read
2023 State Business Tax Climate Index
While there are many ways to show how much is collected in taxes by state governments, our Index is designed to show how well states structure their tax systems by focusing on the how more than the how much in recognition of the fact that there are better and worse ways to raise revenue.
129 min readAll Related Articles
Property Taxes by County, 2021
The six counties with the highest median property tax payments all have bills exceeding $10,000—Bergen, Essex, and Union Counties in New Jersey, and Nassau, Rockland, and Westchester counties in New York. All six are near New York City, as is the next highest, Passaic County, New Jersey ($9,881).
3 min read
Reviewing Benefits of the State and Local Tax Deduction by County in 2018
It is important to understand how the SALT deduction’s benefits have changed since the SALT cap was put into place in 2018 before repealing the cap or making the deduction more generous. Doing so would disproportionately benefit higher earners, making the tax code more regressive.
6 min read
Sales Tax Rates in Major Cities, Midyear 2021
Neither Anchorage, Alaska, nor Portland, Oregon, impose any state or local sales taxes. Honolulu, Hawaii, has a low rate of 4.5 percent and several other major cities, including Milwaukee and Madison, Wisconsin, keep overall rates modest.
13 min read
Does Your State Have a Sales Tax Holiday?
Although state budgets may be in unusual places this year, sales tax holidays remain the same as they always have been—ineffective and inefficient.
3 min read
What Are the Chances Your State Withholds Much of Your Lottery Winnings?
Krispy Kreme may have started the vaccine incentive ball rolling, but many states are putting big money into the effort with vaccine lotteries. Unlike a normal lottery, no one is paying for tickets—but the tax collector still gets paid when someone wins.
2 min read
How Well-Funded Are Pension Plans in Your State?
Although most states are on solid financial footing following the coronavirus crisis, pension liabilities are a deep-seated problem that long predates the pandemic.
2 min read
Biden Administration Changes to GILTI and FDII Will Yield Automatic State Tax Increases
State taxation of GILTI is unconventional and economically uncompetitive and will become even more so if the federal government adopts a more aggressive approach to taxing GILTI, as outlined in the American Jobs Plan Act.
32 min read
Location Matters 2021: The State Tax Costs of Doing Business
A landmark comparison of corporate tax costs in all 50 states, Location Matters provides a comprehensive calculation of real-world tax burdens, going beyond headline rates to demonstrate how tax codes impact businesses and offering policymakers a road map to improvement.
8 min read
These States Will Pay You to Move. Does That Strategy Make Sense?
State and local tax policy have always mattered, but the rise of remote work is bringing tax burdens and economic competitiveness to the forefront. It is a development that states cannot afford to ignore.
5 min read