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
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Arkansas is only part of the equation — federal taxes apply too.
State Tax Ranking
At $75,000 income (single filer), Arkansas ranks #18 out of 51 states — where #1 is the lowest tax burden.
Best states to move to from Arkansas →Tax at Different Income Levels
| Income | State Tax | Effective Rate | Take-Home |
|---|---|---|---|
| $50,000 | $1,873 | 3.74% | $44,256 |
| $75,000 | $2,848 | 3.80% | $64,204 |
| $100,000 | $3,823 | 3.82% | $82,729 |
| $150,000 | $5,773 | 3.85% | $119,161 |
| $200,000 | $7,723 | 3.86% | $155,211 |
Single filer, standard deduction, 2025 tax year. Take-home is after federal + state income tax (excludes FICA).
2025 Tax Brackets — Single Filer
| Taxable Income | Rate |
|---|---|
| $0 – $4,300 | 2% |
| $4,300 – $8,500 | 4% |
| Over $8,500 | 3.9% |
2025 Tax Brackets — Married Filing Jointly
| Taxable Income | Rate |
|---|---|
| $0 – $4,300 | 2% |
| $4,300 – $8,500 | 4% |
| Over $8,500 | 3.9% |
Tax Overview
This state uses a progressive income tax system with multiple brackets, similar to the federal system. Only the income within each bracket is taxed at that rate, so your effective state rate is lower than the top bracket. Tax planning strategies include maximizing pre-tax retirement contributions to reduce state-taxable income.
Tax Planning Tip
In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
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.
Property Tax & Cost of Living
Property tax rate is the state average effective rate. Actual rates vary by county. COL index from BEA Regional Price Parities.
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Frequently asked questions
What is Arkansas's income tax rate in 2025?
Arkansas has a progressive income tax with 3 brackets ranging from 2% to 3.9%. Your effective rate depends on your total taxable income.
Does Arkansas tax Social Security benefits?
Arkansas does not tax Social Security benefits at the state level.