All non-residents must file a state tax return if they receive any income from an Arkansas source. Part-year residents must file a return if they receive any income from any source while a resident of Arkansas.
What income is taxable in Arkansas?
Personal Income Tax Rates for Tax Year Beginning January 1, 2022
| 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% |
How much can you make in Arkansas without paying taxes?
The low income tax table is set up for 2021 so those Arkansans pay no income tax on the first $4,699 earned, 2% on income between $4,700 and $9,199, 3% on income between $9,200 and $13,899 and 3.4% on income between $13,900 and $22,899.
Do I have to file state taxes in Arkansas?
All non-residents must file a state tax return if they receive any in- come from an Arkansas source. Part-year residents must file a return if they re- ceive any income from any source while a resident of Arkansas.
What is taxable in the state of Arkansas?
State Tax Rates
| Statewide Tax Rates | Code | Rate |
|---|---|---|
| State Sales and Use Tax | – | 6.500% |
| State Reduced Food Tax | – | 0.125% |
| State Electricity Manufacturing Tax | – | 1.625% |
| State Manufacturing Utility Tax | – | 0.625% |
Is Arkansas a high tax state?
Arkansas has a 6.50 percent state sales tax rate, a max local sales tax rate of 6.125 percent, and an average combined state and local sales tax rate of 9.47 percent. Arkansas’s tax system ranks 44th overall on our 2022 State Business Tax Climate Index.
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 |
Who must file a tax return in Arkansas?
Part year residents who received any gross income while an Arkansas resident must file a return (regardless of marital status, filing status, or amount). *Gross income is all income (before deductions) other than income specifically described as exempt on pages 9 and 10 “Exempt From Income Tax.”
How much are property taxes in Arkansas?
Overview of Arkansas Taxes
Property taxes in Arkansas are generally lower than in most other states. The statewide average effective property tax rate is just 0.61%, 12th-lowest in the U.S.
Does Arkansas tax federal retirement income?
Arkansas does not tax Social Security retirement benefits. Property taxes in the state are among the lowest in the U.S. On the other hand, sales taxes in Arkansas are quite high.
How does Arkansas state income tax work?
The state of Arkansas requires you to pay taxes if you’re a resident or nonresident that receives income from an Arkansas source. The state income tax rates range up to 5.9%, and the sales tax rate is 6.5%.
2021 Low Income Tax Tables.
| Filing status | If your income doesn’t exceed: | Your tax is: |
|---|---|---|
| Single | $15,700 | Up to $209 |
Does Arkansas tax retirement and Social Security?
There are a lot of good things to say about the overall state and local tax burden in the Natural State. 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.
What constitutes residency in Arkansas?
To acquire a legal residence in Arkansas, an individual must have established a legal home of permanent character, resided in Arkansas for six continuous months and have no present intention of changing residence to a location outside Arkansas.
Is Arkansas a good place to retire?
With beautiful lakes, rivers, and mountains to explore, thriving cities and a low cost of living, not to mention four wonderful seasons, it’s no wonder Arkansas keeps rising in the ranks as one of the best places to retire.
Is there personal property tax in Arkansas?
Arkansans are required to pay personal property taxes every year. Personal property taxes are applied to items such as vehicles, trailers, motorcyles, etc. and are paid to your county collector. Most counties provide online property tax payments, which you can find by visiting ar.gov/tax.
Does Arkansas have capital gains tax?
The state of Arkansas allows for 50 percent of net capital gains to be exempt from state income tax. In addition, the amount of net capital gain in excess of $10 million in a given tax year is exempt from the state income tax.
Why are property taxes so low in Arkansas?
In other words, part of the reason that Arkansas has such low property taxes is because we have very high sales and income taxes (we discussed how high these taxes are in our previous blog post).
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.
Why is sales tax so high in Arkansas?
In addition to having one of the broader sales tax bases in the country, Arkansas also has the third highest average sales tax rate in the country (including local sales tax rates). Together, these mean that Arkansas is heavily reliant on the sales tax for funding state and local government services.
What states have no income tax?
Only seven states have no personal income tax:
- Wyoming.
- Washington.
- Texas.
- South Dakota.
- Nevada.
- Florida.
- Alaska.
Is Arkansas a mandatory withholding state?
Arkansas law requires withholding of state income taxes from the wages of residents and nonresidents for services performed for Arkansas employers.