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

$895

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State and Local Tax Burden

10.1%

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Tax Freedom Day

April 13

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Top Corporate Income Tax Rate

6.5%

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State Business Tax Climate Index Ranking

39

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State Sales Tax Rate

6.50%

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Average Local Sales Tax Rate

2.91%

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Combined State and Average Local Sales Tax Rate

9.41%

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State and Local General Sales Tax Collections per Capita

$1433

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

$699


Featured Articles

Arkansas: The Road Map to Tax Reform

November 14, 2016


Related Articles

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

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

Saying Goodbye to InvestArk

March 14, 2017

Trading Bad Policy for Good Policy in Arkansas

February 21, 2017

Tax Cuts Signed in Arkansas

February 2, 2017

Arkansas: The Road Map to Tax Reform

November 14, 2016

Lunch Links: Speaker Ryan Contemplates Procedural Tool to Push Tax Agenda and Repeal Obamacare; Nevada Governor Not Giving Up on Tax to Fund NFL-Ready Stadium; Massachusetts Legislators Say Marijuana Excise Tax Too Low

October 6, 2016

Lunch Links: Teamsters Say No to Soda Taxes; No Missouri Tax Cut; New Jersey May End Pennsylvania Tax Pact

July 6, 2016

Lunch Links: EU Approves Tax Haven Resolution; States Calling Special Sessions; Dittos in Illinois

June 8, 2016

Arkansas Passes a Transportation Plan

May 27, 2016

Lunch Links: Tax Foundation Makes Dynamic Scoring Mainstream, DC Budget Autonomy, Tampon Exemption

May 26, 2016

Voters Eye Local Sales Tax Increase in Arkansas

February 29, 2016

Arkansas Lawmakers Enact (Complicated) Middle Class Tax Cut

March 9, 2015

State and Local Ballot Initiative Results

November 6, 2012