About Arkansas

Personal Income Tax

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:

Net Taxable Income Rate Net Taxable Income Rate
Less than $3,800
 1.0% Next $11,700 4.5%
Next $3,900 2.5% Next $19,600 6.0%
Next $3,900 3.5% $32,600 & 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's personal income tax.

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. The following personal tax credits are allowed:

Single individuals
- Blind or deaf, additional $23
- Blind and deaf, additional $23

 $23

Head of Household

 $23

Dependents with gross income of less than $3,000

 $23

Fiduciaries

 $23

65 or older head of household
- Spouse 65 or older, additional $23

 $23

Credit for "developmentally disabled" dependent in home

 $500