Taxes in Arkansas

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 rank?  Below, we have highlighted a number of tax rates, ranks, and measures detailing Arkansas’s income tax, business tax, sales tax, and property tax systems. Click the tabs below to explore!

Top Individual Income Tax Rate

6.9%

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State and Local Individual Income Tax Collections per Capita

$931

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State and Local Tax Burden

10.1%

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Tax Freedom Day

April 7

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Top Corporate Income Tax Rate

6.5%

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State Business Tax Climate Index Ranking

46

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State Sales Tax Rate

6.50%

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Average Local Sales Tax Rate

2.93%

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Combined State and Average Local Sales Tax Rate

9.43%

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State and Local General Sales Tax Collections per Capita

$1483

State Gasoline Tax Rate (cents per gallon)

21.8¢

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State Cigarette Tax Rate (dollars per 20-pack)

$1.15

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Property Taxes Paid as a Percentage of Owner-Occupied Housing Value

.63%

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State and Local Property Tax Collections Per Capita

$712


Featured Articles

Tax Changes Taking Effect January 1, 2019

December 27, 2018

2019 State Business Tax Climate Index

September 26, 2018

Arkansas: The Road Map to Tax Reform

November 14, 2016


Related Articles

Recapping the 2019 Arkansas Tax Reform

April 11, 2019

Corporate Tax Reform Comes to Arkansas

March 15, 2019

Arkansas Chips Away at Tax Reform

March 6, 2019

Implementing Phase Three of Individual Income Tax Cuts in Arkansas

January 31, 2019

Tax Changes Taking Effect January 1, 2019

December 27, 2018

The Impact of Tax Cuts on Arkansas Households

December 21, 2018

The Arkansas Tax Task Force Concludes its Work

December 12, 2018

2018 Outstanding Achievement in State Tax Reform

October 30, 2018

Testimony: Arkansas Continues to Debate Tax Reform

September 26, 2018

2019 State Business Tax Climate Index

September 26, 2018

Prioritizing Tax Reform in Arkansas

August 23, 2018

Arkansas Tax Task Force Hones its Recommendations

August 7, 2018

Testimony: Tax Burdens and Tax Triggers in Arkansas

July 27, 2018

Recommendations for the Arkansas Tax Reform and Relief Task Force

June 21, 2018

Arkansas: Options for Excise Tax Reform

June 20, 2018

Reforming Arkansas’s Income Taxes

April 26, 2018

Testimony: Arkansas Options for Sales Tax Reform

March 19, 2018

Arkansas Tax Reform: Lessons from Other Legislators

December 6, 2017

Property Taxes in Arkansas

December 5, 2017

How to Improve Arkansas’s Sales and Use Tax

November 3, 2017