Arkansas variant. This is a Arkansas-specific version of the Income Tax Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Income Tax Calculator.
Arkansas income tax (Top rate 4.4% on income over $24,300) stacks on top of federal tax. Understanding both layers is essential to estimating your total Arkansas tax bill.
Arkansas state income tax structure
Arkansas taxes income at Top rate 4.4% on income over $24,300, with a top marginal rate of 4.4%. Like the federal system, only income within each bracket is taxed at that bracket's rate.
Federal brackets (10%–37%) apply nationwide. Combine your federal effective rate with the Arkansas rate to find your true marginal tax on the next dollar earned.
About taxes and housing in Arkansas
Arkansas has a graduated income tax that tops out at a modest rate, and the state has steadily reduced its top rate in recent years.
Arkansas has low property taxes and some of the most affordable home prices in the country.
Arkansas is home to major retail and food-processing companies, with agriculture and timber remaining important to its low-cost-of-living economy.
Worked example: state tax on $56,335
Using the 4.4% top rate as a ceiling, state income tax on $56,335 is at most about $2,479; the actual figure is lower after brackets and deductions.
Quick reference
- State income tax: Top rate 4.4% on income over $24,300
- State sales tax: 6.5% (plus 2.97% avg local)
- Median home value: $200,000
- Median household income: $56,335
- Effective property tax rate: 0.61%
- Avg auto insurance: $1,657/yr
Frequently Asked Questions
Does Arkansas have state income tax?
Yes - Top rate 4.4% on income over $24,300, topping out at 4.4%.
What is the top tax rate in Arkansas?
The top marginal state rate is 4.4%.