(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.