Taxation in Arkansas

Updated on Tuesday 26th June 2018

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The state of Arkansas welcomes foreign investments in all important sectors and sustains the business climate through a series of incentives for small, medium and large entrepreneurs. The tax structure in Arkansas is not complex, but it is recommended to have an idea about the taxes you need to pay as a business person or as an individual living in this state. If you want to open a company in USA, especially in Arkansas, we suggest you to ask for assistance and information from our team of company incorporation specialists in USA.

The sales tax in Arkansas

The general sales tax in Arkansas is imposed on the sale of products and services in this state and it is settled at 6.5% rate. Just like most American states which impose a sales tax, Arkansas respects the same rule regarding the municipalities that can collect their own sales tax, not exceeding 3.5%.

What is the corporate tax in Arkansas?

Businesses in Arkansas need to align with the tax requirements imposed by the legislation and respect the regulations of the Arkansas Department of Finance and Administration regarding the corporate tax and its calculation. The taxable income for companies in Arkansas is allocated in compliance with the payrolls and property percentage operated in the American state. The following table explains how the incomes are taxed for companies in Arkansas:
Taxable Income Tax Rate
up to $3,000 1%
between $3,001-$6,000 2%
between $6,0001-$11,000 3%
between $11,001-$25,000 5%
between $25,001-$100,000 $490+6% for > $25,000
>$100,000 $5,440+6% for >$100,000

What are the taxes for individuals in Arkansas?

The state of Arkansas adopted a tax system that involves the collection of taxes on personal incomes in six brackets, as seen in this table:
Taxable Income  Tax Rate
up to $4,299 0.9%
between $4,300-$8,399 2.4%
between $8,400-$12,699  3.4%
between $12,700-$21,099 4.4%
between $21,100-$35,299 6%
>$35,300 7%

For a better understanding of the taxation regime in Arkansas, please feel free to talk to our agents in company formation in USA. Also, our advisors can help investors start a business in USA in any chosen state.

Does Arkansas impose an inheritance tax?

No, the state of Arkansas imposes no inheritance tax and aligns with other American states for which such tax does not exist. 

Paying the taxes in Arkansas

Companies and individuals living in Arkansas can pay the imposed taxes at the local offices of the Arkansas Department of Finance and Administration or online using debit or credit cards.

We are at your disposal with in-depth support for tax matters and business registration in USA, so please feel free to get in touch with us.