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What does the Arkansas tax cut mean?

Details of the tax cuts The tax cuts will set the top individual income tax rate at 4.9 percent and be retroactive to the beginning of the year. Lawmakers have said this would allow tax payers to see less money withheld in their paycheck. The corporate income tax would be lowered to 5.3 percent.

What taxes do you pay in Arkansas?

Arkansas Tax Rates, Collections, and Burdens 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.

What is in the Arkansas tax cut bill?

2021: Largest Tax Cut in Arkansas History Lowers the top individual tax rate to 5.5% in January 2022, then to 5.3% in January 2023, and eventually 4.9% in 2025. Lower-income taxpayers will receive a $60 tax credit. Combines low- and middle-income tax tables.

What state has the highest income tax?

1. Highest State Tax Burden: New York.

Is Arkansas a tax friendly state?

According to the Tax Foundation, Arkansas has the third-highest average combined state and local sales tax rate in the nation. But, overall, Arkansas is a tax-friendly state for retirees.

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What is the Arkansas income tax rate?

Personal Income Tax Income Tax Rate for Individuals with Net Income of Less Than or Equal to $84,500$0 - $4,9990.0%$5,000 - $9,9992.0%$10,000 - $14,2993.0%$14,300 - $23,5993.4%1 more row

What is the Arkansas Employment Tax Rate?

Arkansas State Payroll Taxes The 2022 tax rates range from 2% on the low end to 5.5% on the high end. Employees who make more than $79,300 will hit the highest tax bracket. There are no local taxes, so all of your employees will pay the same state income tax no matter where they live.

What 3 states have the highest income tax rates?

The top 10 highest income tax states (or legal jurisdictions) for 2021 are: California 13.3% Hawaii 11% New Jersey 10.75% Oregon 9.9% Minnesota 9.85% District of Columbia 8.95% New York 8.82% Vermont 8.75%

Is Arkansas a tax friendly state?

According to the Tax Foundation, Arkansas has the third-highest average combined state and local sales tax rate in the nation. But, overall, Arkansas is a tax-friendly state for retirees.

What is the Arkansas state income tax rate for 2021?

The state income tax rates range up to 5.9%, and the sales tax rate is 6.5%....2021 Regular Income Tax Tables. If your Arkansas taxable income is as much as:If your income doesn't exceed:Your tax is:$80,001$90,001Up to $5,02010 more rows

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