Welcome to FindLaw's Arkansas Tax Laws section, which covers personal income tax, use tax, and the various types of consumer taxes levied in the state. Arkansas, like other states, has what is known as a "progressive" tax system in which higher income individuals pay a higher percentage of their income in taxes, while those with less income pay a smaller percentage. The highest marginal tax rate in Arkansas is 7 percent. In addition to Arkansas's 6.5 percent tax rate on most retail purchases, the state levies excise taxes on cigarettes, gasoline, and alcoholic beverages. Click on a link below to learn more about Arkansas's tax laws.