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.

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.