Arkansas Personal Income Tax Laws
Benjamin Franklin is famously quoted as having said that death and taxes are inevitable. At least death only happens once, though. Taxes, on the other hand, come in two varieties: federal and state. U.S. citizens need to be sure that they comply with both sets of tax laws.
Nearly all states collect an annual tax on personal income, based on one's salary and other forms of "taxable income." The vast majority of states have what is known as a progressive tax code, which is essentially a sliding scale based on income, which requires those over a certain threshold to pay the highest rate. Some states have a flat tax that applies to all taxpayers regardless of income. Income taxes are used for a number of state goods and services available to residents, such as public education, police protection, and assistance for low-income individuals. Not all states collect income tax, but typically make up for it in other ways.
Personal Income Tax in Arkansas
Arkansas has a progressive tax code, like most states, with a 1-percent tax on the first $2,999 of taxable income and 7 percent on all income above $25,000 (with graduations in-between). Non-residents and part-time residents who received any amount of income from Arkansas sources must file Form AR1000NR, even if they don't meet the minimum income threshold. See the Arkansas Department of Finance and Administration's Income Tax section for more details and resources.
A breakdown of Arkansas's personal income tax rates and other relevant information is listed in the following chart. See FindLaw's Tax Law section for more articles.
|Code Section||26-51-201, et seq.|
|Who is Required to File||Resident individuals, estates and trusts, and nonresidents deriving income from local property or activity; Partnerships are not taxable|
|Rate||First $2,999, 1%; Next $3,000, 2.5%; Next $3,000, 3.5%; Next $6,000, 4.5%; Next $10,000, 6%; $25,000 or over, 7%; general rate for all taxpayers; special reduced rates available for low income|
|Federal Income Tax Deductible||No|
|Federal Income Used as Basis||No|
Note: State laws are always subject to change through the enactment of newly passed statutes or other means, while tax laws are periodically updated in accordance to the needs of the state. You may want to contact an Arkansas tax law attorney or conduct your own legal research to verify the state law(s) you are researching.
Research the Law
- Arkansas Law
- Official State Codes - Links to the official online statutes (laws) in all 50 states and DC.
Arkansas Personal Income Tax Laws: Related Resources
Free Tax Attorney Case Review
Tax season is never a fun time for most Americans. Trying to decipher the laws, how to claim deductions, whether you should itemize (or not) are all perplexing questions and shouldn't be taken lightly. If you need some assistance with Arkansas tax laws, why not get a free case evaluation from a tax attorney near you? This initial meeting comes at no obligation to you.