Did You Know?
Hernando De Soto passed through what is today Saline County in 1541.
Personal Taxes
Personal Income Tax
Resident and nonresident individuals, estates, and trusts deriving income from within the state are subject to a tax on their net income at the following rates:
| Net Taxable Income | Rate | Net Taxable Income | Rate |
| First $2,999 |
1.0% |
Next $6,000 |
4.5% |
| Next $3,000 |
2.5% |
Next $10,000 |
6.0% |
| Next $3,000 |
3.5% |
$25,000 & over |
7.0% |
To arrive at net taxable income, the taxpayer may elect to either itemize deductions or to use the standard deduction of $2,000 per taxpayer. (Married couples may deduct $2,000 per spouse.) Federal income tax is not deductible from income subject to Arkansas' personal income tax.
A credit is allowed resident individuals for the amount of income tax paid to any other state not to exceed what the tax would be on out-of-state income if added to the Arkansas income and calculated at Arkansas income tax rates.
Unemployment Insurance Tax
Every business in Arkansas pays an unemployment insurance tax. Businesses with no previous employment record in Arkansas pays a tax on each employee’s earnings until an employment record is established, normally within three to five years. Once an employment history is established, the tax rate per employee is usually decreased.