Arkansas State Taxes: A Simple Guide
Arkansas has a state income tax, state and local sales taxes, and local property taxes. This guide breaks down the basics for individuals in straightforward terms.
ℹ️Important: This is a general overview. Tax rules and rates change. Always check official Arkansas guidance or talk with a tax professional for current details.
💎Arkansas state income tax
Arkansas taxes personal income using its own brackets and rules, separate from federal law. In general:
- •Residents over certain income thresholds usually must file an Arkansas income tax return.
- •Nonresidents may need to file if they earn Arkansas-source income.
- •Arkansas defines taxable income, deductions, and credits under its own statutes, which may differ from the IRS rules.
Most residents file a federal Form 1040 and a separate Arkansas return for the same tax year if they meet filing requirements.
🛒Sales and use tax
Arkansas has a state sales tax, and cities and counties can add local sales taxes on top, so total rates vary across the state.
- •Many goods and some services are taxable.
- •Certain items (for example, some food or medicines) may be exempt or taxed differently.
- •Purchases from out-of-state sellers without tax may create use tax obligations.
🏡Property taxes
Property taxes in Arkansas are imposed and collected by counties and local governments based on assessed property values.
- •Homeowners receive property tax bills from the local collector.
- •Rates and assessment practices vary by county and school district.
- •Some taxpayers may qualify for relief or special provisions for a primary residence.
🔗Putting Arkansas taxes together
A typical Arkansas resident may face several types of tax each year:
- •Federal income tax (Form 1040)
- •Arkansas state income tax
- •State and local sales and use taxes
- •Local property taxes if they own a home
If you're new to filing, start with how to file your taxes and then layer in Arkansas-specific rules for a clearer picture.