Personal Income Tax

Rates


Resident and nonresident individuals, estates, and trusts deriving income from within the state are subject to a tax on their net income at the following rates:
  • First $2,999: 1.0%
  • Next $3,000: 2.5%
  • Next $3,000: 3.5%
  • Next $6,000: 4.5%
  • Next $10,000: 6.0%
  • $25,000 and Over: 7.0%
To arrive at net taxable income, the taxpayer may elect to either itemize deductions or to use the standard deduction of $2,000 per taxpayer. (Married couples may deduct $2,000 per spouse.) Federal income tax is not deductible from income subject to Arkansas' personal income tax.

Credit


A credit is allowed resident individuals for the amount of income tax paid to any other state not to exceed what the tax would be on out-of-state income if added to the Arkansas income and calculated at Arkansas income tax rates.