Arkansas state taxes at a glance
| Individual income tax | Graduated (bracket) income tax |
|---|---|
| Rate structure | Graduated rates with separate tables for lower incomes. State legislation in 2026 lowered the top rate again, to 3.7% for 2026 according to the Arkansas legislature’s summary; confirm the current schedule with DFA. |
| Tax agency | Arkansas Department of Finance and Administration (DFA) |
| Main individual return | Form AR1000F (full-year residents); Form AR1000NR (nonresidents and part-year residents) |
| Local income taxes | No general local income taxes. |
| Sales tax | A 6.5% state rate plus local city and county taxes. Tax Foundation ranked Arkansas’s combined rate fourth highest in the nation in mid-2026 (about 9.5%). |
| Property tax | Assessed by county assessors and levied by local governments and school districts. Arkansas voters have approved limits on how fast the assessed value of a homestead can rise; check your county assessor. |
| Retirement & Social Security | Arkansas does not tax Social Security benefits. Some retirement and pension income is partly excluded; confirm current limits with DFA. |
Verify current-year figures: state rates, brackets, credits and filing rules change. Treat this page as a starting orientation and confirm details on the Arkansas Department of Finance and Administration (DFA) website.
How Arkansas income tax works
Arkansas taxes income with graduated rates, and the top rate has dropped repeatedly in recent years. Tax Foundation’s early-2026 table shows a top rate of 3.9%, but the Arkansas legislature’s summary of the 2026 fiscal session reports that identical bills (Act 1 and Act 2) reduced the top individual rate to 3.7%, retroactive to the start of 2026, and DFA’s 2026 withholding formula reflects it. Because the two sources were published at different times, the safest approach is to use the schedule in DFA’s current-year instructions rather than any number you read in a third-party summary, including this one.
The rate structure has a quirk worth knowing: Arkansas uses a separate set of tables for lower-income filers, with a low or zero first bracket and a few steps up, and a different schedule for higher incomes. Tax Foundation’s footnotes note that the main brackets apply above a threshold of roughly $92,000 (a 2025 figure), and that the tax tables for lower earners differ, so a quick estimate based on the top rate alone will overstate what most workers pay. Arkansas also uses personal tax credits rather than exemptions, and it has its own standard deduction, so the state return does not line up line-by-line with the federal Form 1040.
Sales tax is the other large piece. With a 6.5% state rate and local add-ons, Arkansas combined rates are among the highest in the country by Tax Foundation’s mid-2026 count, so even a lower income tax can leave household taxes higher than you would expect. For general background on how states mix income, sales and property taxes, see states with no income tax.
Filing your Arkansas return and free options
Full-year residents file Form AR1000F; part-year residents and nonresidents file AR1000NR. DFA runs the Arkansas Taxpayer Access Point (ATAP), where you can make payments and check refund status; DFA says registration is not required for payments or refund checks. For filing itself, DFA’s FreeFile Program uses the Free File Alliance: guided software at no cost for filers up to roughly $89,000 AGI (active-duty military also qualify at that level), with provider-specific rules, so start from DFA’s page to be sure your state return is free.
If you cannot file by the due date, the federal extension rules in our extension guide are a useful starting point, but check DFA for the state’s own extension procedure and make any payment on time. For federal filing help, see our free filing hub and Free File Fillable Forms explainer.
For the federal side, see our guides to free federal filing options and the complete guide to filing taxes.
Things Arkansas residents often ask about
- Rates changed in 2026: cuts were enacted retroactive to January 1, 2026. If you are using withholding or estimated tax tables, use DFA’s 2026 versions.
- Two table sets: lower-income filers use a different tax table than higher earners; follow the instructions for your income range.
- Credits, not exemptions: personal and dependent amounts are structured as tax credits.
- Sales tax is high: combined state and local sales tax is among the highest in the country, so budget for it.
- ATAP is not an e-filing tool: use FreeFile partners or approved software for filing, and ATAP for payments and refund status.
Official Arkansas links
- Arkansas Department of Finance and Administration
- DFA: FreeFile program for individual income tax
- DFA: Arkansas Taxpayer Access Point (ATAP)
- Federation of Tax Administrators: State tax agencies
Frequently asked questions
What is the Arkansas income tax rate for 2026?
Arkansas uses graduated rates. The legislature’s 2026 fiscal-session summary reports a top rate of 3.7% for 2026, down from 3.9%, but check DFA’s current instructions because earlier published tables still show the old rate.
Is there free state filing in Arkansas?
Yes, through DFA’s FreeFile program, which uses Free File Alliance partners for eligible filers (generally about $89,000 AGI or less, with provider rules). Always start from DFA’s page.
Does Arkansas tax Social Security benefits?
No. Arkansas does not tax Social Security benefits.
General information only — not tax, legal or financial advice. Tax figures change every year; verify the current numbers at IRS.gov or with a qualified professional. Read the full disclaimer.