Arkansas Income Tax Rates 2025
Arkansas has a progressive income tax system with 3 brackets ranging from 2% to 3.9%. The state has been gradually reducing its top rate in recent years as part of ongoing tax reform efforts.
Tax Type
Progressive
Rate Range
2% – 3.9%
Brackets
3
2025 Tax Brackets
| Taxable Income | Rate |
|---|---|
| $0 – $4,400 | 2% |
| $4,401 – $8,800 | 4% |
| Over $8,800 | 3.9% |
See the official Arkansas Department of Finance and Administration for exact bracket thresholds, as they may be adjusted for inflation.
How It Works
Arkansas applies its progressive rates to net taxable income after deductions and exemptions. The state has been on a path of rate reductions, with the top marginal rate dropping to 3.9% for 2025. Arkansas uses its own set of deductions and exemptions separate from the federal system.
Arkansas does not tax Social Security benefits. The state sales tax rate is 6.5%, and local rates can bring the combined rate above 11% in some areas.