Rates
Corporations doing business in Arkansas are subject to tax on net income at the following rates:
- First $3,000: 1.0%
- Next $3,000: 2.0%
- Next $5,000: 3.0%
- Next $14,000: 5.0%
- Next $75,000: 6.0%
- Over $100,000: 6.5%
The portion of income that exceeds each category is taxed at the next
higher rate. For example, if a business has corporate net income of
$125,000, the first $3,000 is taxed at 1%, the next $3,000 is taxed at
2% and so on. Only the $25,000 in excess of $100,000 is taxed at the
maximum rate of 6.5%.
Affiliated Groups
Corporations that are members of an
affiliated group that file a federal consolidated corporate income tax
return may elect to file an Arkansas consolidated corporate income tax
return. Only those corporations in the federal affiliated group that
have gross taxable income from sources within Arkansas are eligible.
Arkansas has adopted the provisions of Subchapter S of the Federal
Internal Revenue Code of 1986 (Title 26, U.S.C., Sections 1361 through
1379).
