Arkansas Income Tax
Arkansas has a progressive income tax with rates ranging from 2-4.7%. Lower income earners pay the lower rate, with the top rate applying to the highest bracket.
Arkansas Sales Tax
The state sales tax rate in Arkansas is 6.5%. With an average local sales tax of 2.97%, the combined average sales tax rate is 9.47%.
This is one of the highest combined sales tax rates in the country. Budget accordingly for large purchases.
Arkansas Property Tax
The effective property tax rate in Arkansas is 0.62%. With a median home value of $142,100, the median annual property tax bill is $878 ($73/month).
Corporate & Business Taxes
The corporate tax rate in Arkansas is 1-5.3%.
Other Taxes in Arkansas
| Tax Type | Rate / Amount |
|---|---|
| Gas Excise Tax | $0.24/gallon |
| Cigarette Tax | $1.15/pack |
| Estate Tax | No |
| Inheritance Tax | No |
Key Facts
Has one of the highest combined sales tax rates. Groceries taxed at reduced rate.
Compare to Other States
See how salaries compare on our average salary in Arkansas page. Thinking about starting a business? Check our LLC guide for Arkansas. See the current minimum wage in Arkansas.
Financial Calculators
Plan your finances in Arkansas with our free tools:
- Paycheck Calculator — estimate take-home pay after taxes
- Salary Calculator — convert hourly to annual pay
- Mortgage Calculator — estimate monthly home payments
- Home Affordability Calculator — see how property taxes affect what you can afford