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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.
Although Arkansas finished implementing its third individual income tax reform since 2015 at the beginning of the year, the state's top individual income tax rate (5.9 percent) still ranked in the top half of all states that levy an income tax.
Arkansas: Sales Tax Handbook Combined with the state sales tax, the highest sales tax rate in Arkansas is 12.625% in the city of Gillham.
According to the Tax Foundation, Arkansas has the third-highest average combined state and local sales tax rate in the nation. Income taxes are generally above average, too.
Arkansas collects income taxes from its residents at the following rates. 0.9% on the first $4,299 of taxable income. 2.4% on taxable income between $4,300 and $8,399. 3.4% on taxable income between $8,400 and $12,699.
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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
Property taxes in Arkansas are lower than in most of the rest of the country. The majority of the state's counties have median annual property tax payments below $800. The statewide average effective property tax rate is 0.61%.
Yes, U.S. citizens may still have to pay federal AND state taxes even if they live abroad.
Arkansas collects income taxes from its residents at the following rates. 0.9% on the first $4,299 of taxable income. 2.4% on taxable income between $4,300 and $8,399. 3.4% on taxable income between $8,400 and $12,699.
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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