(March 2020) Arkansas’ top income tax rate declined from 6.9% to 6.6% but is still second-highest in the southeast region, trailing only South Carolina (7.0%), according to records from the Federation of State Tax Administrators.1

South Carolina 7.0%
Arkansas 6.6%
West Virginia 6.5%
Louisiana 6.0%
Georgia 5.75%
Virginia 5.75%
North Carolina 5.25%
Alabama 5.0%
Kentucky 5.0%
Mississippi 5.0%
Tennessee No income tax
Florida No income tax

Arkansas also has the highest rate among states that border it.

Arkansas 6.6%
Louisiana 6.0%
Missouri 5.4%
Mississippi 5.0%
Oklahoma 5.0%
Tennessee No income tax
Texas No income tax

Arkansas’ top rate is set to fall to 5.9% (2021), which would improve the state’s position in both categories.

–Greg Kaza

 

1 https://www.taxadmin.org/assets/docs/Research/Rates/ind_inc.pdf

The organization serves the principal tax collection agencies of all 50 states.