Arkansas Income Tax Rates Higher Than Border States
Arkansas has the highest income tax rate among the states that border it, according to 2008 data compiled by the
Federation of Tax Administrators. The group has published a chart that shows Arkansas has a top rate of 7 percent.
The chart can be viewed at:
http://www.taxadmin.org/fta/rate/ind_inc.html
The following chart lists area states and their top income tax rates.
| State | Top Rate |
| Arkansas | 7.0% |
| Louisiana | 6.0% |
| Missouri | 6.0% |
| Oklahoma | 5.5% |
| Mississippi | 5.0% |
| Tennessee | Limited to Dividends
And Interest |
| Texas1 | No Income Tax |
North Carolina is the only state in the southeast with a higher rate.
Other states in the region and their top income tax rates are as follows:
| North Carolina | 7.75% |
| South Carolina | 7.0% |
| West Virginia | 6.5% |
| Georgia | 6.0% |
| Kentucky | 6.0% |
| Virginia | 5.75% |
| Alabama | 5.0% |
1 According to the Federation, the following states do not have an income tax: Alaska, Florida, Nevada,
South Dakota, Texas, Washington and Wyoming. The income tax in New Hampshire and Tennessee is limited to dividends and
interest.
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Arkansas Policy Blog
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Peer-Reviewed Research
The Arkansas Policy Foundation is an educational organization that regularly submits its research to scholarly journals that use a peer
review process.
Journal Publications
'Regulation of financial derivatives in the U.S. code'
Derivatives Use, Trading and Regulation
(London, U.K.) Palgrave Macmillian Ltd.
February 2006
Read Online
'Deflation & Economic Growth'
QJAE
(Piscataway, N.J.) Transaction Periodicals Consortium, Rutgers University
Summer 2006
Policy Foundation research on this topic cited by Arkansas Attorney General Mike Beebe
(Opinion No. 2005-291)
'A review of state statutes regulating financial derivatives in the USA'
Pensions, an International Journal
(London, U.K.) Palgrave Macmillian Ltd.
2004
Read Online
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