Key Tax Facts: Arkansas
- Top rate dropped to 3.9% as of 2024 (was 4.4%)
- Social Security benefits are exempt from state income tax
- Military retirement pay fully exempt
- Low-income tax tables apply to income under $22,200
Arkansas State Income Tax Overview
Arkansas uses a graduated income tax. Filers with net income of $89,600 or less use a low-income table: no tax below $5,300, then 2%, 3%, 3.4%, and a top rate of 3.9% on income above $25,000. Higher earners use a separate schedule that reaches the same 3.9% top rate, cut from 4.4% retroactive to January 1, 2024. Arkansas offers a low-income tax credit and allows a deduction for federal income taxes paid, which reduces Arkansas taxable income for many filers. The standard deduction is $2,410 for single filers and $4,820 for married couples filing jointly, and both are adjusted annually for inflation.
Arkansas Income Tax Brackets (Single Filers, 2025)
These are the Arkansas state income tax brackets for single filers. Married-filing-jointly brackets use wider income thresholds. Only the income within each bracket is taxed at that rate -- not your entire income.
| Taxable Income (Single) | Tax Rate |
|---|---|
| $0 - $5,300 | 0% |
| $5,300 - $10,600 | 2% |
| $10,600 - $15,100 | 3% |
| $15,100 - $25,000 | 3.4% |
| Over $25,000 | 3.9% |
Source: Arkansas Department of Finance and Administration. Brackets shown are for single filers; married-filing-jointly thresholds are wider.
What a Arkansas Resident Actually Pays: A Worked Example
Your effective tax rate is almost always lower than your top bracket. Here is how the math works for a single filer earning $65,000.
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Frequently Asked Questions -- Arkansas Income Tax
Does Arkansas have a state income tax?
Yes. Arkansas imposes a state income tax with a top marginal rate of 3.9%. This is separate from your federal income tax obligation.
What is the Arkansas income tax rate for 2025?
Arkansas uses a graduated income tax system with rates from 0% to 3.9%. Only the income within each bracket is taxed at that bracket's rate -- not your entire income.
Do I have to file a Arkansas state tax return?
Most full-year Arkansas residents with income above the state filing threshold must file a state return. Check the Arkansas Department of Finance and Administration for current thresholds and requirements.
How accurate is this estimate?
This is a planning estimate of your federal income tax only. It does not calculate Arkansas state tax, and it does not account for state deductions, credits, exemptions, or local taxes. Use the Arkansas rate schedule above as a reference, and verify with official Arkansas tax forms or a qualified tax professional.
Does this calculator include federal income tax?
Yes. The calculator estimates your 2025 federal income tax using the official IRS 2025 brackets. It does not compute your Arkansas state tax -- see the Arkansas rate schedule below to work that out.
Where can I find official Arkansas tax forms?
Official forms, instructions, and filing guidance are available at the Arkansas Department of Finance and Administration.
What is the sales tax rate in Arkansas?
Arkansas's combined state and average local sales tax rate is 9.44%. This is separate from income tax and applies to most retail purchases -- use our sales tax calculator to check a specific purchase.
When are Arkansas 2025 state taxes due?
2025 taxes are generally filed in 2026. The Arkansas filing deadline is April 15, 2026, the same as the federal deadline.
Understanding Your Arkansas Tax Estimate
Your results combine two separate bills: federal tax owed to the IRS, and Arkansas state tax owed to the Arkansas Department of Finance and Administration. The state return is filed separately from your federal Form 1040, with a state filing deadline of April 15. For the mechanics of how bracket math actually works -- why your effective rate is almost always lower than your top bracket -- see our marginal vs. effective tax rate guide.
Lowering Your Arkansas Bill
Pre-tax retirement contributions reduce your federal and Arkansas taxable income in the same move -- see our 401(k) contribution limits and HSA limits guides for the current caps. Beyond that, Arkansas-specific credits and deductions that don't exist at the federal level are listed at the Arkansas Department of Finance and Administration -- worth checking, since these are easy to miss if you only look at federal guidance.
Combined Sales + Income Tax Picture
Arkansas's combined state-plus-average-local sales tax rate is 9.44%. If you're self-employed, that's an added layer on top of income tax -- our self-employment tax calculator covers the SE-specific piece separately.
Disclaimer: Estimates for educational purposes only. State tax results are approximations based on published bracket data and do not account for all deductions, credits, exemptions, local taxes, or individual situations. Not tax, legal, or financial advice. Consult the Arkansas Department of Finance and Administration or a qualified tax professional for guidance specific to your situation.