Rates
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:
- First $2,999: 1.0%
- Next $3,000: 2.5%
- Next $3,000: 3.5%
- Next $6,000: 4.5%
- Next $10,000: 6.0%
- $25,000 and 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' personal income
tax.
Credit
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.