What Is Arkansas Tax?

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Taxes in Arkansas

  • Income Taxes: Range from 1% to 6.9%
  • Sales Taxes: High compared to other states
  • Property Taxes: Among the lowest nationwide
  • Inheritance Taxes: None

State Income Tax in Arkansas

  • Who Pays: All residents, except those aged over 65 or disabled
  • Tax Rate: Up to 6.9% based on income amount

Property Taxes in Arkansas

  • Average Rate: 0.61%
  • Seniors’ Deductions: Social Security income exempt, $6,000 deduction on other retirement income

Other Information

  • Property Tax Rates: Arkansas Department of Revenue
  • Self-Employed Tax Set Aside: 30-40% of earnings
  • Business Sales Tax Payment: Monthly or quarterly available
  • Withholding Tax Calculation: Percentage of employees’ taxable wages, paid quarterly

Summary

  • Arkansas has moderate income tax and high sales tax but low property tax
  • Seniors receive deductions.

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