Personal Income Tax in Arkansas

April 13, 2006

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If you are a resident or non-resident of Arkansas and receive taxable income individually from property owned or business transacted in Arkansas, you are subject to tax on net income. Therefore, if you are operating your business as an S corporation, partnership, limited liability company, or sole proprietorship, you will be subject to a personal income tax on your business income that passes through to you. In addition, local income taxes apply in certain areas of Arkansas, so be sure to check with your local government.

In Arkansas, individuals, estates, and trusts, deriving income from within the state are subject to a tax on the entire net income. The following table shows the income brackets and related tax rates for 2006:

Income at Least	But Not More Than	Tax Rate
$0	$3,599	1%
$3,600	$7,199	2.5% minus $53.99
$7,200	$10,799	3.5% minus $125.98
$10,800	$17,999	4.5% minus $233.97
$18,000	$30,099	6% minus $503.96
$30,100 and over		7% minus $804.95