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:

The following chart lists area states and their top income tax rates.

StateTop Rate
TennesseeLimited to Dividends
And Interest
Texas1No 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 Carolina7.75%
South Carolina7.0%
West Virginia6.5%

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.

Arkansas Policy Blog

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Peer-Reviewed Research

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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'
(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.
Read Online