Arkansas collects income tax from its residents over six different tax brackets based on income. The rates for each bracket and relative income level are:
- 1% on taxable income under $4,200
- 5% between $4,200 and $8,299 of taxable income
- 5% between $8,300 and $12,399 of taxable income
- 5% between $12,400 and $20,699 of taxable income
- 6% between $20,700 and $34,599 of taxable income
- 7% taxable income greater than $34,600
State income tax returns must be filed by April 15th, unless that date is either a weekend or a holiday, in which case returns are due the following business day.
The state income tax system in Arkansas is modeled similarly to that of the standards put forth by the Internal Revenue Service of the federal government. However, there are a few distinctions between the federal system and the system of Arkansas. Married couples can file a single return together, or can file individually, depending on what option gives the best tax benefit. On state forms, Arkansas taxpayers aren’t required to use the same filing status as they did on their federal forms. Residents who are owed a refund of any overpayment of taxes need to file Form AR100 in order to receive payment.
