-
Overall Rank
32
Down 3 places since 2026 -
19
Down 9 places since 2026 -
32
Up 1 place since 2026 -
42
Up 1 place since 2026 -
17
Up 1 place since 2026 -
Unemployment Insurance Tax Rank
10
No change since 2026
Arkansas ranks 32nd overall on the 2027 State Tax Competitiveness Index.
Score 5.01 / 10
Notable Changes Arkansas is singled out in the study for this year's and forthcoming changes.
In the 2027 Index
Despite reductions to its top individual income tax rate (from 3.9 percent to 3.7 percent), Arkansas fell 3 spots overall to 32nd. This was driven largely by other states’ improvements in combination with Arkansas’s continued nonconformity with the federal full expensing allowance under Section 168(k), causing its corporate income tax ranking to fall nine places to 19th.
Forthcoming, Not Yet Reflected
Arkansas already saw an individual income tax rate reduction in 2026, but in 2027, the state’s corporate income tax rate is scheduled to fall to 4.1 percent. As such, that change falls outside of the snapshot date for this edition but will affect future years’ scores.
Snapshot date: The 2027 Index measures each state's tax law as of July 1, 2026. Changes enacted after that date are not reflected in these ranks.
About Arkansas's Tax Code
Despite multiple rounds of income tax rate reductions since 2015 with resulting low top marginal corporate and individual income tax rates, Arkansas ranks relatively poorly on the Index due to a range of structural shortcomings in the state’s tax code. For instance, Arkansas only allows corporations’ net operating losses (NOLs) to be carried forward for 10 years, while most states either allow 20-year or uncapped carryforward periods. Arkansas also imposes a throwback rule, exposing some out-of-state activity of Arkansas-based corporations to the state’s corporate income tax, which increases their tax liability. Throwback rules penalize firms’ investments and instead incentivize them to relocate to states without these rules.
The state stands alone in having two different individual income tax rate schedules depending on taxpayer income, adding complexity to its tax code. Arkansas also has one of the highest combined state and local sales tax rates in the nation.
The state also imposes a tax on capital stock, at 0.3 percent of the apportioned net worth of corporations. Such taxes are increasingly rare, and Arkansas’s tax rate is the highest in the nation. The state also assesses property tax on businesses’ inventory, making the state even more of an outlier. Both taxes are assessed whether the firm makes a profit or loss in a particular tax year, which is harmful to small businesses seeking to scale up their operations, capital-intensive firms, and all firms during an economic decline. Finally, Arkansas offers no de minimis exemption for its tax on tangible personal property, making this tax exceptionally burdensome to small businesses.
Component Scores
#32 overall · 5.01 / 10Each component is scored from 0 to 10, where 10 is best. Select a component for its detail page.
| Component | Rank | Score | |
|---|---|---|---|
| Corporate Taxes | #19 | 5.48 / 10 | |
| Individual Income Taxes | #32 | 5.01 / 10 | |
| Sales Taxes | #42 | 4.03 / 10 | |
| Property Taxes | #17 | 5.23 / 10 | |
| Unemployment Insurance Taxes | #10 | 5.70 / 10 |
Ranking Changes, 2020–2027
#32 in 2027 · up 10 places from 2020Arkansas ranked 42nd in 2020 and ranks 32nd in 2027, an improvement of 10 places. The axis is zoomed to the state's range. Ranks for 2020 through 2026 are backcast under the current methodology.
Show the Table
| Year | Overall | Corporate | Individual Income | Sales | Property | Unemployment Insurance |
|---|---|---|---|---|---|---|
| 2020 | 42 (4.61) | 29 (5.11) | 43 (4.25) | 45 (3.71) | 18 (5.33) | 16 (5.39) |
| 2021 | 42 (4.64) | 27 (5.15) | 43 (4.35) | 45 (3.67) | 18 (5.33) | 14 (5.50) |
| 2022 | 38 (4.73) | 25 (5.25) | 43 (4.53) | 44 (3.73) | 28 (5.11) | 8 (5.78) |
| 2023 | 39 (4.77) | 23 (5.29) | 41 (4.63) | 44 (3.71) | 25 (5.18) | 10 (5.67) |
| 2024 | 36 (4.83) | 19 (5.41) | 37 (4.92) | 44 (3.74) | 23 (5.19) | 20 (5.28) |
| 2025 | 34 (4.97) | 11 (5.54) | 33 (5.01) | 44 (3.92) | 21 (5.23) | 11 (5.60) |
| 2026 | 29 (5.03) | 10 (5.65) | 33 (4.97) | 43 (4.00) | 18 (5.24) | 10 (5.71) |
| 2027 | 32 (5.01) | 19 (5.48) | 32 (5.01) | 42 (4.03) | 17 (5.23) | 10 (5.70) |
Arkansas Compared across the States
#32 overallEach row places the states on a 0 to 10 score scale for one measure. Arkansas is the large outlined dot, and the dashed line is the 50-state median, so a dot to its right scores better than the typical state. Hover over or tab to any dot for detail, and select it to open that state's profile.
Overall
#32 5.01
Corporate Taxes
#19 5.48
Individual Income Taxes
#32 5.01
Sales Taxes
#42 4.03
Property Taxes
#17 5.23
Unemployment Insurance Taxes
#10 5.70
- Arkansas
- Other states, by rank (1st to 50th)
- 50-state median
Arkansas and Its Neighbors
#32 overallArkansas borders 6 states and ranks 32nd overall; every one of them ranks higher.
What Each Component Includes
The five components of the Index, what each one covers, and where Arkansas lands. Open any component for the full breakdown.
-
Corporate Taxes
Rank #19Includes corporate income taxes and gross receipts taxes. Measures the impact of each state’s principal tax on business activities.
Full Breakdown for Arkansas → -
Individual Income Taxes
Rank #32Covers the tax individuals pay on income, and with it a significant number of businesses — sole proprietorships, partnerships, and S corporations — that report their income through the individual income tax code.
Full Breakdown for Arkansas → -
Sales Taxes
Rank #42Covers the general sales tax levied on the purchase price of goods and services, plus excise taxes on gasoline, diesel, tobacco, vapor products, beer, and spirits, and taxes on digital advertising.
Full Breakdown for Arkansas → -
Property Taxes
Rank #17Includes taxes on real and personal property, net worth, and the transfer of assets — among them capital stock, estate, inheritance, and real estate transfer taxes.
Full Breakdown for Arkansas → -
Unemployment Insurance Taxes
Rank #10Covers the taxes employers pay into the state unemployment insurance program to finance benefits for workers recently unemployed.
Full Breakdown for Arkansas →
Tax Data Explorer
Every policy variable behind Arkansas's 2027 scores, grouped by the report's tables, as of July 1, 2026. Its bordering states are shown alongside to start. Search the variables and values, or add up to 4 states to compare side by side.
156 data points · Shaded values differ from Arkansas
Corporate Taxes: Corporate Income Tax Rates
| Variable | Arkansas | Louisiana | Mississippi | Missouri | Oklahoma | Tennessee | Texas |
|---|---|---|---|---|---|---|---|
| Bracket 1 | 1.0% > $0 | 5.5% > $0 (differs) | 4.0% > $5,000 (differs) | 4.0% > $0 (differs) | 4.0% > $0 (differs) | 6.5% > $0 (differs) | None (differs) |
| Bracket 2 | 2.0% > $3,000 | n.a. (differs) | 5.0% > $10,000 (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) |
| Bracket 3 | 3.0% > $6,000 | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) |
| Bracket 4 | 4.3% > $11,000 | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) |
| Gross Receipts Tax | No | No | No | No | No | Yes (differs) | Yes (differs) |
| Gross Receipts Tax Minimum Rate | n.a. | n.a. | n.a. | n.a. | n.a. | 0.02% (differs) | 0.331% (differs) |
| Gross Receipts Tax Maximum Rate | n.a. | n.a. | n.a. | n.a. | n.a. | 0.1875% (differs) | 0.75% (differs) |
| Gross Receipts Tax Rate Used in the Index | n.a. | n.a. | n.a. | n.a. | n.a. | 0.15% (differs) | 0.75% (differs) |
Corporate Taxes: Tax Credits and Gross Receipts Deductions
| Variable | Arkansas | Louisiana | Mississippi | Missouri | Oklahoma | Tennessee | Texas |
|---|---|---|---|---|---|---|---|
| Job Credits | Yes | Yes | Yes | Yes | Yes | Yes | No (differs) |
| Research and Development Credits | Yes | Yes | No (differs) | Yes | No (differs) | No (differs) | Yes |
| Investment Credits | Yes | Yes | Yes | Yes | Yes | Yes | No (differs) |
| Compensation Expenses Deductible | n.a. | n.a. | n.a. | n.a. | n.a. | No (differs) | Partial (differs) |
| Cost of Goods Sold Deductible | n.a. | n.a. | n.a. | n.a. | n.a. | No (differs) | Partial (differs) |
Corporate Taxes: Net Operating Losses
| Variable | Arkansas | Louisiana | Mississippi | Missouri | Oklahoma | Tennessee | Texas |
|---|---|---|---|---|---|---|---|
| Conforms to Federal NOL Treatment | No | No | No | No | Yes (differs) | No | n.a. (differs) |
| Carryback (Years) | 0 | 0 | 2 (differs) | 2 (differs) | Conforms to federal treatment (differs) | 0 | n.a. (differs) |
| Carryback Cap | $0 | $0 | Unlimited (differs) | Unlimited (differs) | Conforms to federal treatment (differs) | $0 | n.a. (differs) |
| Carryforward (Years) | 10 | Unlimited (differs) | 20 (differs) | 20 (differs) | Conforms to federal treatment (differs) | 15 (differs) | n.a. (differs) |
| Carryforward Cap | Unlimited | 72% (differs) | Unlimited | Unlimited | Conforms to federal treatment (differs) | Unlimited | n.a. (differs) |
Corporate Taxes: Treatment of Capital Investment
| Variable | Arkansas | Louisiana | Mississippi | Missouri | Oklahoma | Tennessee | Texas |
|---|---|---|---|---|---|---|---|
| Section 168(k) Expensing | 0% | 100% (differs) | 100% (differs) | 100% (differs) | 100% (differs) | 20% (differs) | 100% (differs) |
| Conforms to Section 163(j) Limitation | No | Yes (differs) | No | No | Yes (differs) | No | No |
| GILTI Inclusion | Decouples | Decouples | Decouples | Decouples | Decouples | 5% Inclusion (differs) | n.a. (differs) |
| Section 174 Expensing | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Section 168(n) Expensing | No | Yes (differs) | Yes (differs) | Yes (differs) | Yes (differs) | No | Yes (differs) |
Corporate Taxes: Other Corporate Base Variables
| Variable | Arkansas | Louisiana | Mississippi | Missouri | Oklahoma | Tennessee | Texas |
|---|---|---|---|---|---|---|---|
| Federal Income Used as State Tax Base | No | Yes (differs) | No | Yes (differs) | Yes (differs) | Yes (differs) | Partial (differs) |
| Conformity Status | Static (not current) | Rolling (differs) | Static (not current) | Rolling (differs) | Rolling (differs) | Rolling (differs) | Rolling (differs) |
| Allows Federal ACRS or MACRS Depreciation | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Allows Federal Depletion | Yes | Partial (differs) | Partial (differs) | Yes | Yes | Partial (differs) | Yes |
| Throwback Rule | Yes | No (differs) | Yes | No (differs) | Yes | No (differs) | No (differs) |
| Foreign Tax Deductibility | Yes | Yes | No (differs) | Yes | No (differs) | Yes | Yes |
| Corporate AMT | No | No | No | No | No | No | No |
| Brackets Indexed for Inflation | No | Flat CIT (differs) | No | Flat CIT (differs) | Flat CIT (differs) | Flat CIT (differs) | GRT (differs) |
Individual Income Taxes: Individual Income Tax Rates
| Variable | Arkansas | Louisiana | Mississippi | Missouri | Oklahoma | Tennessee | Texas |
|---|---|---|---|---|---|---|---|
| Bracket 1 | 2.0% > $0 | 3.0% > $0 (differs) | 4.0% > $10,000 (differs) | 2.0% > $1,348 (differs) | 2.5% > $3,750 (differs) | No Income Tax (differs) | No Income Tax (differs) |
| Bracket 2 | 3.7% > $4,700 | n.a. (differs) | n.a. (differs) | 2.5% > $2,696 (differs) | 3.5% > $4,900 (differs) | n.a. (differs) | n.a. (differs) |
| Bracket 3 | n.a. | n.a. | n.a. | 3.0% > $4,044 (differs) | 4.5% > $7,200 (differs) | n.a. | n.a. |
| Bracket 4 | n.a. | n.a. | n.a. | 3.5% > $5,392 (differs) | n.a. | n.a. | n.a. |
| Bracket 5 | n.a. | n.a. | n.a. | 4.0% > $6,740 (differs) | n.a. | n.a. | n.a. |
| Bracket 6 | n.a. | n.a. | n.a. | 4.5% > $8,088 (differs) | n.a. | n.a. | n.a. |
| Bracket 7 | n.a. | n.a. | n.a. | 4.7% > $9,436 (differs) | n.a. | n.a. | n.a. |
| Standard Deduction (Single Filer) | $2,470 | $12,875 (differs) | $2,300 (differs) | $16,100 (differs) | $6,350 (differs) | n.a. (differs) | n.a. (differs) |
| Personal Exemption (Single Filer) | n.a. | n.a. | $6,000 (differs) | n.a. | $1,000 (differs) | n.a. | n.a. |
| Personal Exemption Credit (Single Filer) | $29 | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) |
| Personal Exemption per Dependent | n.a. | n.a. | $1,500 (differs) | n.a. | $1,000 (differs) | n.a. | n.a. |
| Personal Exemption Credit per Dependent | $29 | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) |
| Average Local Income Tax Rate | None | None | None | 1.00% (differs) | None | None | None |
| Surtaxes on Wage Income | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
Individual Income Taxes: Marriage Penalty, Capital Income, Indexation
| Variable | Arkansas | Louisiana | Mississippi | Missouri | Oklahoma | Tennessee | Texas |
|---|---|---|---|---|---|---|---|
| Marriage Penalty | Yes | No (differs) | No (differs) | No (differs) | No (differs) | n.a. (differs) | n.a. (differs) |
| Married Couples Can File Separately on One Return | Yes | No (differs) | No (differs) | Yes | No (differs) | n.a. (differs) | n.a. (differs) |
| Convenience Rule | No | No | No | No | No | No | No |
| Interest Taxed | Yes | Yes | Yes | Yes | Yes | n.a. (differs) | n.a. (differs) |
| Dividends Taxed | Yes | Yes | Yes | Yes | Yes | n.a. (differs) | n.a. (differs) |
| Capital Gains Taxed | Yes | Yes | Yes | No (differs) | Yes | n.a. (differs) | n.a. (differs) |
| Combined Capital Gains Tax Rate | 1.85% | 3% (differs) | 4.4% (differs) | 0% (differs) | 4.5% (differs) | n.a. (differs) | n.a. (differs) |
| Tax Brackets Indexed for Inflation | Yes | Yes | No (differs) | Yes | No (differs) | n.a. (differs) | n.a. (differs) |
| Standard Deduction Indexed for Inflation | Yes | Yes | No (differs) | Yes | No (differs) | n.a. (differs) | n.a. (differs) |
| Personal Exemption Indexed for Inflation | Yes | Yes | No (differs) | Yes | No (differs) | n.a. (differs) | n.a. (differs) |
| Progressivity Ratio | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | n.a. (differs) | n.a. (differs) |
Individual Income Taxes: Other Individual Base Variables
| Variable | Arkansas | Louisiana | Mississippi | Missouri | Oklahoma | Tennessee | Texas |
|---|---|---|---|---|---|---|---|
| Federal Income Used as State Tax Base | No | Yes (differs) | No | Yes (differs) | Yes (differs) | n.a. (differs) | n.a. (differs) |
| Conformity Status | Static (not current) | Rolling (differs) | Static (not current) | Rolling (differs) | Rolling (differs) | n.a. (differs) | n.a. (differs) |
| Credits for Taxes Paid to Other States | Yes | Yes | Yes | Yes | Yes | n.a. (differs) | n.a. (differs) |
| AMT Levied | No | No | No | No | No | n.a. (differs) | n.a. (differs) |
| Recognition of S Corporation Status | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Section 179 Expensing Limit | $1,250,000 | $2,560,000 (differs) | $2,560,000 (differs) | $2,560,000 (differs) | $2,560,000 (differs) | $2,560,000 (differs) | $2,560,000 (differs) |
| Tips | Taxable | Taxable | Taxable | Taxable | Taxable | n.a. (differs) | n.a. (differs) |
| Overtime | Taxable | Taxable | Taxable | Taxable | Taxable | n.a. (differs) | n.a. (differs) |
| Filing and Withholding Threshold Index | 0 | 10 (differs) | 0 | 0.339 (differs) | 0.735 (differs) | 10 (differs) | 10 (differs) |
Individual Income Taxes: Other Individual Income Variables
| Variable | Arkansas | Louisiana | Mississippi | Missouri | Oklahoma | Tennessee | Texas |
|---|---|---|---|---|---|---|---|
| Income Recapture | Yes | No (differs) | No (differs) | No (differs) | No (differs) | n.a. (differs) | n.a. (differs) |
Sales Taxes: Sales and Excise Tax Rates
| Variable | Arkansas | Louisiana | Mississippi | Missouri | Oklahoma | Tennessee | Texas |
|---|---|---|---|---|---|---|---|
| State Sales Tax Rate | 6.50% | 5.00% (differs) | 7.00% (differs) | 4.23% (differs) | 4.50% (differs) | 7.00% (differs) | 6.25% (differs) |
| Average Local Sales Tax Rate | 2.98% | 5.13% (differs) | 0.06% (differs) | 4.22% (differs) | 4.56% (differs) | 2.61% (differs) | 1.95% (differs) |
| Maximum Local Sales Tax Rate | 6.125% | 7.00% (differs) | 1.00% (differs) | 6.25% (differs) | 7.00% (differs) | 2.75% (differs) | 2.00% (differs) |
| Gasoline Tax (Cents per Gallon) | 25.00 | 20.93 (differs) | 24.40 (differs) | 29.99 (differs) | 20.00 (differs) | 27.40 (differs) | 20.00 (differs) |
| Diesel Tax (Cents per Gallon) | 28.8 | 20.93 (differs) | 24.4 (differs) | 29.99 (differs) | 20 (differs) | 28.4 (differs) | 20 (differs) |
| Cigarette Tax (Dollars per Pack of 20) | $1.15 | $1.08 (differs) | $0.68 (differs) | $0.17 (differs) | $2.03 (differs) | $0.62 (differs) | $1.41 (differs) |
| Beer Tax (Dollars per Gallon) | $0.3722 | $0.4032 (differs) | $0.4268 (differs) | $0.06 (differs) | $0.4032 (differs) | $1.2868 (differs) | $0.1935 (differs) |
| Spirits Tax (Dollars per Gallon) | $9.76 | $3.03 (differs) | $9.38 (differs) | $2.00 (differs) | $5.56 (differs) | $4.46 (differs) | $2.40 (differs) |
| Vapor Tax Ratio to Cigarette Tax | n.a. | 15.00% (differs) | n.a. | n.a. | n.a. | 26.1667% (differs) | n.a. |
Sales Taxes: Business-to-Business Exemptions
| Variable | Arkansas | Louisiana | Mississippi | Missouri | Oklahoma | Tennessee | Texas |
|---|---|---|---|---|---|---|---|
| Business Inputs | Some Taxable | Some Taxable | Some Taxable | Some Taxable | Some Taxable | Some Taxable | Some Taxable |
| Farm Equipment | Exempt | Taxable (differs) | Partial (differs) | Exempt | Exempt | Exempt | Exempt |
| Office Equipment | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable |
| Manufacturing Machinery | Exempt | Exempt | Partial (differs) | Exempt | Exempt | Exempt | Exempt |
| Manufacturing Raw Materials | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt |
| Business Fuel and Utilities | Partial | Partial | Exempt (differs) | Exempt (differs) | Exempt (differs) | Partial | Exempt (differs) |
| Business Leases and Rentals | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable |
| Information Services | Exempt | Taxable (differs) | Exempt | Exempt | Exempt | Exempt | Taxable (differs) |
| Software as a Service (SaaS) | Exempt | Taxable (differs) | Taxable (differs) | Exempt | Exempt | Taxable (differs) | Partial (differs) |
| Platform as a Service (PaaS) | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt | Partial (differs) |
| Digital B2B Products | Taxable | Taxable | Taxable | Exempt (differs) | Exempt (differs) | Taxable | Taxable |
| Payroll Services | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt | Partial (differs) |
| Data Center Purchases | Exempt | Exempt | Exempt | Exempt | Taxable (differs) | Exempt | Partial (differs) |
| Digital Advertising Tax | No | No | No | No | No | No | No |
Sales Taxes: Consumer Goods and Services in the Base
| Variable | Arkansas | Louisiana | Mississippi | Missouri | Oklahoma | Tennessee | Texas |
|---|---|---|---|---|---|---|---|
| Groceries | Alternate Rate | Exempt (differs) | Alternate Rate | Alternate Rate | Alternate Rate | Alternate Rate | Exempt (differs) |
| Clothing | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable |
| Prescription Medication | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt |
| Nonprescription Medication | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable | Exempt (differs) |
| Gasoline | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt |
| Landscaping | Taxable | Exempt (differs) | Taxable | Exempt (differs) | Exempt (differs) | Exempt (differs) | Taxable |
| Repair Services | Taxable | Taxable | Taxable | Exempt (differs) | Exempt (differs) | Taxable | Taxable |
| Real Estate Services | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt |
| Parking | Taxable | Taxable | Taxable | Exempt (differs) | Taxable | Taxable | Taxable |
| Dry Cleaning | Taxable | Taxable | Taxable | Exempt (differs) | Exempt (differs) | Taxable | Taxable |
| Fitness Services | Taxable | Taxable | Exempt (differs) | Taxable | Taxable | Exempt (differs) | Taxable |
| Barber Services | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt |
| Veterinary Services | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt |
| E-Books | Taxable | Taxable | Taxable | Exempt (differs) | Exempt (differs) | Taxable | Taxable |
| Streaming Video | Taxable | Taxable | Taxable | Exempt (differs) | Exempt (differs) | Taxable | Taxable |
| Medical Services | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt |
| Legal Services | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt |
| Financial Services | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt |
| Accounting Services | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt | Exempt |
| Sales Tax Holiday | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Sales Taxes: Sales Tax Structure
| Variable | Arkansas | Louisiana | Mississippi | Missouri | Oklahoma | Tennessee | Texas |
|---|---|---|---|---|---|---|---|
| Uniform Base Definitions | Yes | No (differs) | Yes | Yes | Yes | Yes | Yes |
| Unified Tax Administration | Yes | Partial (differs) | Yes | Yes | Yes | Yes | Yes |
| Safe Harbor for Remote Sellers | Sales or Transactions Threshold | Gross Sales Threshold (differs) | Gross Sales Threshold (differs) | Gross Sales Threshold (differs) | Gross Sales Threshold (differs) | Gross Sales Threshold (differs) | Gross Sales Threshold (differs) |
Property Taxes: Property and Capital Stock Tax Rates
| Variable | Arkansas | Louisiana | Mississippi | Missouri | Oklahoma | Tennessee | Texas |
|---|---|---|---|---|---|---|---|
| Property Tax Collections per Capita | $961 | $1,191 (differs) | $1,310 (differs) | $1,567 (differs) | $996 (differs) | $921 (differs) | $2,320 (differs) |
| Property Tax as a Percentage of Personal Income | 1.62% | 1.93% (differs) | 2.52% (differs) | 2.41% (differs) | 1.56% (differs) | 1.39% (differs) | 3.33% (differs) |
| Assessment Limit | Yes | No (differs) | No (differs) | No (differs) | Yes | No (differs) | Yes |
| Levy Limit | Yes | Yes | Yes | Yes | No (differs) | No (differs) | Yes |
| Capital Stock Tax Rate | 0.3% | None (differs) | 0.05% (differs) | None (differs) | None (differs) | 0.25% (differs) | None (differs) |
| Capital Stock Tax Maximum Payment | Unlimited | n.a. (differs) | Unlimited | n.a. (differs) | n.a. (differs) | Unlimited | n.a. (differs) |
| Payment Options for Capital Stock and Corporate Income Taxes | Pay both | n.a. (differs) | Pay both | n.a. (differs) | n.a. (differs) | Pay both | n.a. (differs) |
Property Taxes: Property Tax Bases
| Variable | Arkansas | Louisiana | Mississippi | Missouri | Oklahoma | Tennessee | Texas |
|---|---|---|---|---|---|---|---|
| Tangible Personal Property Tax | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Tangible Personal Property De Minimis Exemption | None | None | None | None | None | None | $125,000 (differs) |
| Intangible Property Tax | No | Yes (differs) | Yes (differs) | No | No | Yes (differs) | No |
| Inventory Tax | Yes | Yes | Yes | No (differs) | Yes | No (differs) | Yes |
| Real Estate Transfer Tax | Yes | No (differs) | No (differs) | No (differs) | Yes | Yes | No (differs) |
| Split Roll | No | Yes (differs) | Yes (differs) | Yes (differs) | No | Yes (differs) | No |
| Split Roll Ratio | 1.00 | 1.50 (differs) | 1.50 (differs) | 1.68 (differs) | 1.00 | 1.60 (differs) | 1.00 |
| Estate Tax | No | No | No | No | No | No | No |
| Inheritance Tax | No | No | No | No | No | No | No |
| Gift Tax | No | No | No | No | No | No | No |
Unemployment Insurance Taxes: UI Tax Rates
| Variable | Arkansas | Louisiana | Mississippi | Missouri | Oklahoma | Tennessee | Texas |
|---|---|---|---|---|---|---|---|
| Minimum Rate | 0.20% | 0.09% (differs) | 0.20% | 0.00% (differs) | 0.20% | 0.01% (differs) | 0.25% (differs) |
| Maximum Rate | 10.10% | 6.20% (differs) | 5.60% (differs) | 6.00% (differs) | 5.80% (differs) | 10.00% (differs) | 6.25% (differs) |
| Taxable Wage Base | $7,000 | $7,000 | $14,000 (differs) | $9,000 (differs) | $25,000 (differs) | $7,000 | $9,000 (differs) |
| Most Favorable Schedule: Minimum Rate | 0.10% | 0.09% (differs) | 0.00% (differs) | 0.00% (differs) | 0.01% (differs) | 0.01% (differs) | 0.00% (differs) |
| Most Favorable Schedule: Maximum Rate | 6.00% | 6.00% | 5.40% (differs) | 5.40% (differs) | 5.50% (differs) | 10.00% (differs) | 6.00% |
| Least Favorable Schedule: Minimum Rate | 0.08% | 0.09% (differs) | 0.00% (differs) | 0.00% (differs) | 0.30% (differs) | 0.50% (differs) | 0.00% (differs) |
| Least Favorable Schedule: Maximum Rate | 6.00% | 6.00% | 5.40% (differs) | 7.80% (differs) | 9.20% (differs) | 10.00% (differs) | 6.00% |
| Employer Contributions as a Share of Total Wages | 0.14% | 0.22% (differs) | 0.13% (differs) | 0.21% (differs) | 0.38% (differs) | 0.15% (differs) | 0.22% (differs) |
| Employer Contributions as a Share of Taxable Wages | 0.88% | 1.31% (differs) | 0.41% (differs) | 1.08% (differs) | 0.84% (differs) | 0.96% (differs) | 1.45% (differs) |
| Trust Fund Solvency Ratio | 1.06 | 0.82 (differs) | 1.24 (differs) | 0.7 (differs) | 0.84 (differs) | 0.77 (differs) | 0.04 (differs) |
| New Employer Rate | 2.00% | 3.00% (differs) | 1.00% (differs) | 2.70% (differs) | 1.50% (differs) | 2.70% (differs) | 2.70% (differs) |
Unemployment Insurance Taxes: Experience Formulas and Charging Methods
| Variable | Arkansas | Louisiana | Mississippi | Missouri | Oklahoma | Tennessee | Texas |
|---|---|---|---|---|---|---|---|
| Experience Formula Based On | Reserve Ratio | Reserve Ratio | Benefits Ratio (differs) | Reserve Ratio | Benefit Wage Ratio (differs) | Reserve Ratio | Benefits Ratio (differs) |
| Benefits Charged in Proportion to Base-Period Wages | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Charged If Employee's Benefit Award Is Reversed | No | No | Yes (differs) | No | No | No | No |
| Charged for Reimbursements on Combined Wage Claims | Yes | No (differs) | Yes | Yes | Yes | No (differs) | Yes |
| Charged If Employee Left Voluntarily | No | No | No | No | No | No | No |
| Charged If Employee Was Discharged for Misconduct | No | No | No | No | No | No | No |
| Charged If Employee Refused Suitable Work | Yes | No (differs) | No (differs) | No (differs) | No (differs) | Yes | Yes |
| Charged If Employee Continues to Work Part-Time | No | No | No | No | No | No | Yes (differs) |
Unemployment Insurance Taxes: Other UI Base Variables
| Variable | Arkansas | Louisiana | Mississippi | Missouri | Oklahoma | Tennessee | Texas |
|---|---|---|---|---|---|---|---|
| Solvency Tax | Yes | Yes | No (differs) | Yes | Yes | No (differs) | Yes |
| Taxes for Socialized Costs or Negative Balance Employers | No | Yes (differs) | No | No | No | No | Yes (differs) |
| Loan and Interest Repayment Surtaxes | Yes | Yes | No (differs) | Yes | No (differs) | Yes | Yes |
| Reserve Taxes | No | No | No | No | No | No | No |
| Surtaxes for UI Administration or Non-UI Purposes | Yes | Yes | Yes | Yes | Yes | No (differs) | Yes |
| Temporary Disability Insurance | No | No | No | No | No | No | No |
| Voluntary Contributions | Yes | Yes | No (differs) | Yes | No (differs) | No (differs) | Yes |
| Years to Qualify for Experience Rating | 3 | 2 (differs) | 3 | 2 (differs) | 2 (differs) | 3 | 1.5 (differs) |
Share This Page
About the Authors
Janelle Fritts is a Senior Policy Analyst with the Tax Foundation’s Center for State Tax Policy. She is the lead researcher on the annual State Tax Competitiveness Index and serves as a resource to policymakers in their efforts to modernize and improve the structures of their state tax codes. Her work has been cited in The New York Times, the Associated Press, Bloomberg, and numerous state media outlets across the country.
Jared Walczak is a Senior Fellow at the Tax Foundation, where he spent five years as Vice President of State Projects, and president of Walczak Policy Consulting.
Nicole Fox is a Policy Analyst with the Center for State Tax Policy at the Tax Foundation, where she serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
Katherine Loughead is the Vice President of State Tax Policy at the Tax Foundation, where she oversees the state tax policy team’s research agenda and serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
Media Contacts
Sarah Wilbur
Sarah Wilbur is Communications Manager at the Tax Foundation where she advances the organization’s institutional reach by developing its corporate communications and media programs.
Jesse Solis
Jesse Solis is Vice President of Communications at the Tax Foundation, where he leads the communications team and works to build coverage of Tax Foundation’s experts and their work across the globe. He joined the team in 2021 as Communications Manager and became Communications Director in 2024.