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
Arkansas Lieutenant Governor Looks to Eliminate Income Tax
Lt. Governor Griffin’s goal to eliminate the income tax is a commendable one that should be considered with cautious optimism, though with the understanding that even a well-designed process may end up putting more weight on an already uncompetitive sales tax. In the meantime, there is plenty of space for incremental improvements in Arkansas’s income tax that will make the state more competitive.
4 min read
Details and Analysis of State and Local Aid Under the Bipartisan State and Local Support and Small Business Protection Act of 2020
On Monday, members of the bipartisan Gang of Eight negotiating an end-of-year pandemic relief package announced that they had settled on language and had divided the package into two bills: a pandemic aid package and a $160 billion state and local support package.
6 min read
Wireless Tax Burden Remains High Due to Federal Surcharge Increase
A typical American household with four phones on a “family share” wireless plan can expect to pay about $270 per year (or 22 percent of their cell phone bill) in taxes, fees, and surcharges.
36 min read
2021 State Business Tax Climate Index
166 min read
Top Rates in Each State Under Joe Biden’s Tax Plan
President Joe Biden’s tax plan would yield combined top marginal state and local rates in excess of 60 percent in three states: California, Hawaii, and New Jersey (also New York City).
4 min read
State and Local Tax Ballot Measures to Watch on Election Day 2020
Here are the state tax ballot measures to watch on Election Day 2020. Explore the most notable 2020 state tax ballot measures in 15 states.
4 min read
New Census Data Shows States Beat Revenue Expectations in FY 2020
State tax revenue collections were down 5.5 percent in FY 2020, driven by a dismal final quarter (April through June) as states began to feel the impact of the COVID-19 pandemic. While these early losses are certainly not desirable, they are manageable and far better than many feared.
16 min read
April 24th Afternoon State Tax Update
Virginia enacted a biennial budget, which includes a new excise tax on “skill games.” Meanwhile, Arizona and Connecticut announced plans to convene in special sessions later this year while Oklahoma gets the green light to use rainy day fund money to close budget gaps.
4 min read
A Visual Guide to Unemployment Benefit Claims
Another 1.4 million Americans filed initial regular unemployment benefit claims, the eleventh week of a decline in the rate of new claims, but still among the highest levels in U.S. history. The total number of new and continued claims now stands at 19.3 million, a marked decline from the peak of 24.9 million a month ago.
7 min read
March 27th Afternoon State Tax Update
Massachusetts, Ohio, and West Virginia have newly extended their income tax filing and payment deadlines to match the July 15 federal deadline.
3 min read