Arkansas Tax Guide
4.4%top marginal rate
Arkansas has a progressive income tax with a top rate of 4.4%. The state has been gradually reducing its income tax rates in recent years. Sales taxes are relatively high, but property taxes remain low.
Arkansas Tax at a Glance
Income Tax
4.4%
Top marginal rate
Sales Tax
6.5%
State-level rate
Property Tax
0.62%
44% below the national average
Estate Tax
No
No state estate tax
How Arkansas Compares to the National Average
Notable Tax Facts
- Has been actively reducing income tax rates — top rate dropped from 5.9% to 4.4% in recent years
- State sales tax of 6.5% is among the higher rates nationally
- Property taxes are well below the national average
- Home to Walmart's headquarters in Bentonville
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Arkansas Tax FAQ
What is the Arkansas income tax rate?
Arkansas has a progressive income tax with rates from 2% to 4.4%. The state has been steadily reducing rates in recent years.
Is Arkansas a low-tax state?
Arkansas has relatively low income and property taxes, but its sales tax rate of 6.5% (plus local additions) makes it mixed. Overall tax burden is moderate.
Does Arkansas tax Social Security?
Arkansas does not tax Social Security benefits for most residents.
What is the sales tax in Arkansas?
The state sales tax rate is 6.5%. When combined with local taxes, rates can exceed 11% in some areas, among the highest combined rates in the nation.
Compare With Other States
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Educational content, not tax advice. Tax rates are approximate and subject to change. Consult a qualified CPA or tax professional for advice specific to your situation. Data reflects widely-known public information as of early 2026.