Arkansas Tax Overview
Arkansas has been progressively reducing its top income tax rate, bringing it down to 3.9% as part of ongoing tax reform efforts. The state offers a relatively low cost of living which helps offset the tax burden. Arkansas also imposes a sales tax on groceries, though at a reduced rate.
Arkansas Tax Quick Facts (2026)
| Income Tax | progressive (top rate: 3.9%) |
| Sales Tax (State) | 6.50% |
| Property Tax (Avg Effective) | 0.57% |
| Median Household Income | $56,335 |
| Capital | Little Rock |
| Population | 3.0 million |
Arkansas Income Tax Brackets (2026)
| Income Range | Tax Rate |
|---|---|
| $0 — $4,400 | 0.00% |
| $4,400 — $8,800 | 2.00% |
| $8,800 — $24,300 | 3.00% |
| $24,300+ | 3.90% |
Frequently Asked Questions About Arkansas Taxes
Does Arkansas have a state income tax?+
Yes, Arkansas has a progressive income tax system with a top marginal rate of 3.9%.
What is the property tax rate in Arkansas?+
The average effective property tax rate in Arkansas is approximately 0.57% of assessed home value. On a $300,000 home, that is about $1,710 per year.
What is the sales tax rate in Arkansas?+
The state sales tax rate in Arkansas is 6.50%. Local jurisdictions may add additional sales tax.
What is the median household income in Arkansas?+
The median household income in Arkansas is approximately $56,335 per year.
How does Arkansas's tax burden compare to other states?+
Arkansas's total tax burden depends on income tax, property tax, and sales tax combined. Use the calculator above to compare your specific situation.
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James Whitfield, CPA, MST
James Whitfield is a Certified Public Accountant with a Master of Science in Taxation. He specializes in US federal and state tax calculations and ensures all tax-related tools meet current IRS guidelines. Last updated: April 2026. Uses 2026 tax year data from state revenue departments and IRS publications.