Arkansas State Tax Guide
Arkansas state tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact residents.
Arkansas state tax: Overview
Arkansas state tax is a mixed picture. Sales taxes in Arkansas are relatively high. Income taxes are generally above average relative to other states. Arkansas income tax is based on different rate schedules depending on your income.
Arkansas's property taxes are among the lowest in the nation, and there are no estate or inheritance taxes when you die.
[Data for this state tax guide was gathered from several sources including the U.S. Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Arkansas income taxes
Arkansas income tax rates for the 2023 tax year max out at 4.7%. The top tax rate is reduced to 4.4% as of Jan. 1, 2024.
The table below shows 2023 Arkansas income tax rates for individuals with net incomes up to $84,500. Taxpayers with net incomes above this amount reach the higher tax brackets sooner.
Arkansas Income Tax Range: Individual with net income up to $84,500
Up to $5,099 | 0% |
$5,100 to $10,299 | 2% |
$10,300 to $14,699 | 3% |
$14,700 to $24,299 | 3.4% |
$24,300 or more | 4.7% |
Arkansas tax on retirement benefits: Social Security retirement benefits and Railroad Retirement benefits are tax-exempt. Retirees age 59.5 or older can exempt the first $6,000 of an IRA distribution. Up to $6,000 of income from private or government employer sponsored retirement plans is also tax-exempt in Arkansas. Military retirement pay is tax-exempt.
Arkansas sales tax
Arkansas has a 6.5% state levy. Localities can add as much as 6.125% to the state's tax rate, according to the Tax Foundation.
- Groceries are taxable at a reduced rate of 0.125%, but local taxes may also apply.
- Clothing is taxable.
- Prescription drugs are tax-exempt.
How much are property taxes in Arkansas?
In Arkansas, the average effective property tax rate is 0.62%, and the median property tax bill is under $1,000.
Arkansas Property Tax Breaks for Retirees
Age 65 Property Tax Relief: Residents 65 or older who qualify for the homestead exemption may also have the assessed value of their property frozen.
- Construction and "substantial improvements" may cause the assessed value of the property to increase.
- People with disabilities may qualify for the freeze regardless of age.
Arkansas motor fuel and vehicle taxes
Motor vehicle purchases in Arkansas are subject to state and local sales taxes.
Arkansas taxes gasoline at $0.249 per gallon when considering the state excise tax and other state taxes and fees.
Arkansas taxes on alcohol and tobacco
Cigarettes | $1.15 per pack |
Other tobacco products | 68% of manufacturer's price |
Beer | $0.23 per gallon |
Wine | $0.75 per gallon |
Liquor | $2.50 per gallon |
Arkansas estate and inheritance taxes
Arkansas does not have an estate or inheritance tax.
Related Content
Katelyn has more than 6 years’ experience working in tax and finance. While she specializes in tax content, Katelyn has also written for digital publications on topics including insurance, retirement and financial planning and has had financial advice commissioned by national print publications. She believes that knowledge is the key to success and enjoys helping others reach their goals by providing content that educates and informs.
-
Should You Enroll in Medicare if You Still Have a Job?
This question is being asked more than ever these days, so here’s what you can do when it comes to making Medicare decisions while you’re still working.
By Jae W. Oh Published
-
Donald Trump's Net Worth Hits $6.5 Billion, Despite Legal Woes
Boosted by Truth Social stock deal, Trump is thrust into the world’s wealthiest 500 people on the Bloomberg Billionaires Index
By Kathryn Pomroy Published
-
How Much Richer Could You Be Without a Big Tax Refund?
Tax Refunds A big tax refund isn’t a reason to celebrate if you overpaid throughout the year. Here’s how much money your interest-free loan to the government could have cost you.
By Katelyn Washington Last updated
-
How to Calculate Your Adjusted Gross Income — and What It Means
Income Tax Your eligibility for certain money-saving tax breaks depends on your adjusted gross income.
By Ella Vincent Published
-
Ways to File Your Taxes for Free
Free Filing Tax season is in full swing, and if you’re looking to save money, there are several ways to file your taxes for free.
By Kelley R. Taylor Last updated
-
IRS Issues Another Tax Warning for Wealthy, High Earners
Tax Enforcement Wealthy non-filers could pay more tax than they owe if the IRS files for them.
By Katelyn Washington Last updated
-
Types of Income the IRS Doesn't Tax
Income Tax It may feel like the IRS taxes most of your hard-earned money, but some types of income are nontaxable.
By Kelley R. Taylor Last updated
-
Why You’ll Still Pay Oklahoma Grocery Tax
State Tax Oklahoma is eliminating state grocery taxes, but that doesn’t mean groceries will be tax-free.
By Katelyn Washington Last updated
-
Last-Minute Tax Savings Guide for 2023
Tax Savings April 15 is weeks away, so it's not too late to save your 2023 taxes.
By Sandra Block Published
-
Why You Should Care About Your 2026 Taxes Now
Tax Planning It's not to early to prepare for the possibility that your taxes will go up in 2026.
By Sandra Block Published