Arkansas individual income tax
Arkansas' individual income tax is levied on the income earned by residents and nonresidents of the state. The tax is based on the individual's federal-adjusted gross income, with rates ranging from 0% to 4.9%.
April 18
Return due in 2023
4.9%
Top marginal tax rate
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Pay income tax online
Visit the official state government’s resource to pay individual income tax online. This service isn't available for Estimated tax payments.
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What is Arkansas income tax?
Individual income tax
Individual income tax is a type of direct tax levied by Arkansas on individuals that meet the taxable criteria.
Taxable incomes
Arkansas taxes incomes from wages, dividends, interests and capital gains.
Tax brackets
Arkansas has 5 individual income tax brackets from 0% to 4.9%.
Standard deduction
Standard deduction is $2,270 for singles and $4,540 for married couples filing jointly for the year 2022.
Reduction in tax rate
In August 2022, a bill was passed which reduced max rate from 5.5% to 4.9%.
2022 tax rates
The following is the list of income tax rates for the tax year of 2022
| Arkansas taxable income | Tax rate |
|---|---|
| $0 - $5,099 | 0% |
| $5,100 - $10,299 | 2% |
| $10,300 - $14,699 | 3% |
| $14,700 - $24,299 | 3.40% |
| $24,300+ | 4.90% |
Individual income tax
The State of Arkansas requires you to pay taxes if you are a resident (regardless of whether they were earned within the state or not) or a non-resident that earns income from Alabama
Types of taxable incomes
The income types on which tax is levied are:
In Arkansas, all types of income are generally subject to personal income tax unless they are specifically exempt by state law. This includes, but is not limited to, wages and salary, dividends, capital gains, royalties, and other types of income.
File return
To file a tax return in Arkansas, taxpayers must complete and submit a tax return form. The tax return form requires taxpayers to report their taxable income and any credits or deductions they are eligible to claim. Taxpayers must also calculate their tax liability and pay any taxes owed by the due date.
Due
annually
Pay taxes
Taxes in Arkansas are due by 18 April, 2023. Go to the official Arkansas Taxpayer Access Point to make tax payments.
Type of tax
graduated tax
Due
annually
Deductions
Tax deductions are a reduction in the amount of income that is subject to taxation. It allows taxpayers to lower the amount of taxable income they have, which in turn reduces the amount of tax they owe. Tax deductions are available for a wide range of expenses, such as charitable donations, mortgage interest, medical expenses, and business expenses.
Credits
A tax credit allows taxpayers to reduce the amount of taxes they are required to pay. This is different from a tax deduction, which reduces the amount of income that is subject to taxation. Tax credits are applied directly to the tax liability, while deductions are applied to the taxable income.
Exclusions
Tax exclusions are an amount of money or income that is not subject to taxation. This means that taxpayers do not have to pay taxes on this income.
Residency
Residency in Arkansas refers to an individual's permanent home or place of residence in the state.
Arkansas resident
An Arkansas resident is someone who is lived in or maintained a domicile in Arkansas for the entire calendar year.
Arkansas part-year resident
An Arkansas Part-Year Resident is someone who is not domiciled in Arkansas but received income from Arkansas sources.
Income earned while the individual was a resident of Arkansas is subject to state taxes.
Arkansas non-resident
An Arkansas nonresident is someone who is not domiciled nor lived in the state for the entire calendar year.
Frequently asked questions
Business entities in Arkansas
There are several business entities in Arkansas
Arkansas LLC
Page sponsorWhy we like StartGlobal?
My genuine thoughts
Willy Justin
Founder, Statepedia
StartGlobal: Legal + Taxes + Bookkeeping for solopreneurs
Product
For small businesses, managing taxes, accounting and everything legal is just a pain. Nobody wants to do it, but they have to. Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription. It’s just smooth.
Team
I know the team behind StartGlobal very well. It’s a very hardworking group of individuals who are genuinely passionate about small businesses. They are backed by successful founders like Balaji Srinivasan, Biz Stone(Twitter) and others.
Price
Getting a CPA or attorney is a matter of thousands of dollars. It’s just unfair to pay so much when you’re a small business. Start has a single subscription that covers it all. It is a definite money saver.
$599 one-time