Arkansas Tax Brackets
How to read this: Only the income within each bracket is taxed at that rate. Your total tax is the sum across brackets.
| Income Range | Tax Rate |
|---|---|
| $0 - $4,600 | 2.00% |
| $4,600+ | 3.90% |
Brackets shown for single filers. Married filing jointly brackets may differ. Use the calculator above to see your specific situation.
What People Get Wrong
“Progressive tax means I'll pay different rates across brackets in Arkansas.”
Arkansas's progressive system is so compressed (only three brackets, with the first two covering just $8,800) that virtually all taxpayers earning above $15,000-$20,000 pay the top 5.9% rate on almost all their income. A $75,000 earner pays 5.9% on ~ $66,200+ of their income, making their effective rate around 5.8%-5.9%: essentially a flat 5.9% rate for most taxpayers. The 'progressive' label is technically accurate but practically irrelevant for most earners.
“Arkansas has low taxes because it's a low-income state.”
Arkansas's income tax is effectively a flat 5.9% for most earners (due to compressed brackets), which is higher than many flat-tax states like Pennsylvania (3.07%), Indiana (2.95%), or North Carolina (3.99%). Additionally, Arkansas's combined sales tax rates (up to 11.625% in some areas, among the highest in the nation) create a significant total tax burden. Lower-income residents pay a large percentage of income to sales tax, while higher earners pay 5.9% income tax.
“No local taxes means Arkansas is cheaper than other states.”
While Arkansas avoids local income tax complications, the effective 5.9% income tax rate combined with very high sales taxes (up to 11.625% in some areas, among the highest in the nation) and property taxes can create a significant tax burden. A big spender in Arkansas might pay more in sales tax than they'd pay in income tax in some other states. Factor in all taxes when comparing Arkansas to other states.
Key Facts That Affect Your Take-Home Pay
- Arkansas uses a progressive income tax system with three brackets, starting at 2% for the first $4,400 of income (for all filing statuses) and escalating to a top rate of 5.9% for income above $8,800, making Arkansas's bracket structure the simplest among progressive states with compressed brackets at low income levels.
- Arkansas's progressive brackets are extremely compressed, meaning the first two brackets cover only the first $8,800 of income, so virtually all middle and high earners immediately reach the top 5.9% rate. For a $75,000 earner, ~ $66,200+ of income is taxed at 5.9%, making the effective rate very close to the flat 5.9% rate.
- Arkansas does not levy income taxes locally, so your paycheck shows the same deductions statewide. All Arkansas residents have the same income tax structure: only the state progressive brackets apply.
