Taxes in Arkansas

Arkansas Tax Rates, Collections, and Burdens

How does Arkansas’s tax code compare? Arkansas has a graduated individual income tax, with rates ranging from 2.00 percent to 5.50 percent. Arkansas also has a 1.0 to 5.9 percent corporate income tax rate. Arkansas has a 6.50 percent state sales tax rate, a max local sales tax rate of 6.125 percent, and an average combined state and local sales tax rate of 9.47 percent. Arkansas’s tax system ranks 44th overall on our 2022 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: How Does Your State Compare?

Top Individual Income Tax Rate

5.5%

See Full Study

State and Local Individual Income Tax Collections per Capita

$952

Click for a comparative tax map!

State and Local Tax Burden

10.2%

Click for a comparative tax map!
See Full Study

Top Corporate Income Tax Rate

5.9%

See Full Study

State Business Tax Climate Index Ranking

44

See Full Study

State Sales Tax Rate

6.50%

Click for a comparative tax map!
See Full Study

Average Local Sales Tax Rate

2.97%

See Full Study

Combined State and Average Local Sales Tax Rate

9.47%

Click for a comparative tax map!
See Full Study

State and Local General Sales Tax Collections per Capita

$1603

Click for a comparative tax map!

State Gasoline Tax Rate (cents per gallon)

24.8¢

Click for a comparative tax map!

State Cigarette Tax Rate (dollars per 20-pack)

$1.15

Click for a comparative tax map!

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

0.64%

Click for a comparative tax map!

State and Local Property Tax Collections Per Capita

$788

Click for a comparative tax map!

Featured Articles

Where Do People Pay the Most in Property Taxes?

September 13, 2022

Unpacking the State and Local Tax Toolkit: Sources of State and Local Tax Collections (FY 2020)

August 25, 2022

2022 Sales Tax Holidays: Bad Policy Any Year, But Especially in Response to High Inflation

August 2, 2022

State and Local Sales Tax Rates, Midyear 2022

July 19, 2022

Vapor Taxes by State, 2022

July 5, 2022

Two Dozen States Show Why the Kansas Critique of Income Tax Cuts Is Mistaken

May 24, 2022


Related Articles

Combined Federal and State Corporate Income Tax Rates in 2022

September 27, 2022

Where Do People Pay the Most in Property Taxes?

September 13, 2022

States That Might Tax Student Loan Debt Cancellation

August 25, 2022

Unpacking the State and Local Tax Toolkit: Sources of State and Local Tax Collections (FY 2020)

August 25, 2022

Arkansas’s Rate Reduction Acceleration

August 18, 2022

2022 Sales Tax Holidays: Bad Policy Any Year, But Especially in Response to High Inflation

August 2, 2022

State and Local Sales Tax Rates, Midyear 2022

July 19, 2022

Vapor Taxes by State, 2022

July 5, 2022

Two Dozen States Show Why the Kansas Critique of Income Tax Cuts Is Mistaken

May 24, 2022

Ranking Property Taxes on the 2022 State Business Tax Climate Index

May 10, 2022

State Sales Tax Breadth and Reliance, Fiscal Year 2021

May 4, 2022

Ranking Unemployment Insurance Taxes on Our 2022 State Business Tax Climate Index

April 26, 2022

The Surprising Regressivity of Grocery Tax Exemptions

April 13, 2022

State and Local Tax Burdens, Calendar Year 2022

April 7, 2022

Facts & Figures 2022: How Does Your State Compare?

March 29, 2022

Ranking Individual Income Taxes on the 2022 State Business Tax Climate Index

March 15, 2022

Ranking Corporate Income Taxes on the 2022 State Business Tax Climate Index

March 1, 2022

State Individual Income Tax Rates and Brackets for 2022

February 15, 2022

State and Local Sales Tax Rates, 2022

February 3, 2022

State Corporate Income Tax Rates and Brackets for 2022

January 18, 2022