The state income tax rates range up to 5.9%, and the sales tax rate is 6.5%.
2021 Regular Income Tax Tables.
| If your Arkansas taxable income is as much as: | If your income doesn’t exceed: | Your tax is: |
|---|---|---|
| $80,001 | $90,001 | Up to $5,020 |
What is state income tax in Arkansas?
Personal Income Tax Rates for Tax Year Beginning January 1, 2025
| Income Tax Rate for Individuals with Net Income of Less Than or Equal to $84,500 | |
|---|---|
| $0 – $4,999 | 0.0% |
| $5,000 – $9,999 | 2.0% |
| $10,000 – $14,299 | 3.0% |
| $14,300 – $23,599 | 3.4% |
What is the Arkansas state income tax rate for 2022?
Key Findings
| State Individual Income Tax Rates and Brackets, as of January 1, 2022 | ||
|---|---|---|
| Single Filer | Married Filing Jointly | |
| 4.17% | $111,229 | |
| 4.50% | $333,684 | |
| Arkansas | 2.00% | $0 |
What are the tax bracket rates for 2021?
How We Make Money
| Tax rate | Single | Married filing jointly or qualifying widow |
|---|---|---|
| 10% | $0 to $9,950 | $0 to $19,900 |
| 12% | $9,951 to $40,525 | $19,901 to $81,050 |
| 22% | $40,526 to $86,375 | $81,051 to $172,750 |
| 24% | $86,376 to $164,925 | $172,751 to $329,850 |
What is my state and local tax rate 2021?
Local Sales Tax Rates
| State | State Sales Tax Rate | Avg. Local Sales Tax Rate (a) |
|---|---|---|
| Arkansas | 6.50% | 3.01% |
| California (b) | 7.25% | 1.43% |
| Colorado | 2.90% | 4.82% |
| Connecticut | 6.35% | 0.00% |
Does Arkansas tax Social Security and retirement income?
For instance, Arkansas exempts Social Security benefits and up to $6,000 of retirement income from its state income tax. And, as a plus for veterans, all military pension income is tax-exempt.
Is Arkansas a tax friendly state for retirees?
Arkansas is a relatively tax-friendly state for retirees. Social Security is totally exempt from the state’s income tax. Arkansas also offers seniors a deduction of $6,000 for other types of retirement income like from pensions or an IRA.
What is Arkansas withholding tax rate?
Arkansas State Payroll Taxes
The 2022 tax rates range from 2% on the low end to 5.5% on the high end. Employees who make more than $79,300 will hit the highest tax bracket. There are no local taxes, so all of your employees will pay the same state income tax no matter where they live.
Does Arkansas have local income taxes?
There are more than 300 local taxes in Arkansas since local taxes have become a reality. Most cities and counties have local taxes.
Did Arkansas taxes go up?
Asa Hutchinson. Under the two bills, Arkansas will cut its top income tax rate from 5.9% to 4.9% by 2025. The top individual income tax rate, currently 5.9%, will decrease to 5.5% in 2022, 5.3% in 2023, 5.1% in 2024, and 4.9% in 2025.
How do I calculate my income tax rate?
The most straightforward way to calculate effective tax rate is to divide the income tax expense by the earnings (or income earned) before taxes. Tax expense is usually the last line item before the bottom line—net income—on an income statement.
What is the standard deduction for a senior citizen?
$14,250
Increased Standard Deduction
For the 2021 tax year, seniors get a tax deduction of $14,250 (this increases in 2022 to $14,700). Taking the standard deduction is often the best option and can eliminate the need to itemize.
What is the extra standard deduction for seniors over 65?
If you are age 65 or older, your standard deduction increases by $1,750 if you file as Single or Head of Household. If you are legally blind, your standard deduction increases by $1,750 as well. If you are Married Filing Jointly and you OR your spouse is 65 or older, your standard deduction increases by $1,400.
Which state has the highest state income tax?
The top 10 highest income tax states (or legal jurisdictions) for 2021 are:
- California 13.3%
- Hawaii 11%
- New Jersey 10.75%
- Oregon 9.9%
- Minnesota 9.85%
- District of Columbia 8.95%
- New York 8.82%
- Vermont 8.75%
What is the highest taxed state?
1. Highest State Tax Burden: New York.
What is the current tax rate?
The tax rates themselves are the same for both the 2021 and 2022 tax years. There are still seven tax rates currently in effect: 10%, 12%, 22%, 24%, 32%, 35% and 37%. However, every year the tax brackets are adjusted to account for inflation.
At what age do you stop paying property taxes in Arkansas?
Age 65 or Disabled Homeowner Property Tax Relief
If a person who is age 65 or older or who is disabled purchases a homestead property, the taxable assessed value of the residence can be frozen as of the date of purchase. Eligible homeowners must apply for the “freeze” with the county assessor’s office.
At what age is Social Security no longer taxed?
However once you are at full retirement age (between 65 and 67 years old, depending on your year of birth) your Social Security payments can no longer be withheld if, when combined with your other forms of income, they exceed the maximum threshold.
What is the most tax friendly state for retirees?
Delaware
1. Delaware. Congratulations, Delaware – you’re the most tax-friendly state for retirees! With no sales tax, low property taxes, and no death taxes, it’s easy to see why Delaware is a tax haven for retirees.
Why is Arkansas not a good place to retire?
The study said Arkansas has the 5th worst property crime rate and the 5th worst life expectancy rate in the country. It also ranked poorly in the WalletHub ‘taxpayer’ ranking, the elderly-friendly labor market and the number of health-care facilities per capita.
How much is Social Security tax in Arkansas?
If you work in Arkansas and make a considerable income, you pay a state income tax. Arkansas also taxes capital gains (with a 30% exemption). Arkansas taxes distributions from pre-tax retirement plans. Arkansas DOES NOT tax Social Security income.