Arkansas Taxes

Arkansas Income Tax

The state of Arkansas has based its income tax rules and regulations on the U.S. federal income tax system. According to the Arkansas Tax Guide, there are 6 income tax brackets:

  1. 1 percent on taxable income below 3,900
  2. 2.5 percent on taxable income at and above $3,900 and below $7,800
  3. 3.5 percent on taxable income at and above $7,800 and below $11,800
  4. 4.5 percent on taxable income at and above $11,800 and below $19,600
  5. 6 percent on taxable income at and above$19,600 and below $32,700
  6. 7 percent on taxable income at and above $32,700

There is a 3 percent personal income tax surcharge on residents who live in Texarkana, the city which lies partly in Arkansas and Texas. The due date for tax returns is before or on April 15. If it falls on a weekend or holiday, the due date would be the next business working day. The taxpayers who are age of 59½ years get an IRA distribution where they do not have to pay tax on the first $6,000 received from that account.

Arkansas Sales Tax

According to the Arkansas tax guide, the gross receipts tax and compensating tax rate was increased from 5.125 percent to 6 percent in 2004. In the same year many other services like towing services, dry cleaning, tattooing, pest control, security, boat storage and pet grooming were brought under the purview of sales tax. Apart from this, there are 300 odd other taxes in the state of Arkansas. If voters in particular cities and counties approve, additional taxes can be levied.  Previously, service sales in Texarkana were not subject to sales tax in line with Texas law.  But now, taxes have to be paid on the services taxable in Arkansas.  The rate of taxes on sale of food and its ingredients which was earlier higher has now been reduced to 2%.

Arkansas Real Estate and Personal Property Taxes

Counties, cities and other such subdivisions levy and collect taxes on real estate as well as personal property such as vehicles.  These taxes are ad valorem that is based on the value of the property.  In case of real estate, the basis of assessment is 20% of the actual market value.  For personal property, the basis of assessment is the selling price. The tax is assessed value multiplied by the local millage rate.

Each Arkansas County has an assessor who maintains the property tax records of that county. The last date for assessment of personal property is on or before May 31.
According to the Arkansas tax guide, disabled veterans are exempted from real estate and personal property taxes.  Also, widows and widowers who do not marry and minor children of military personnel who were killed in action or are missing in action are also exempted from these taxes.

Prior Year AR 1000 Arkansas Individual Income Tax Forms

2005 2006 2007 2008 2009 2010

Where to mail FEDERAL IRS Tax Forms within Arkansas:

IRS Form If you ARE NOT enclosing a payment, use this address: If you ARE enclosing payment, use this address:
1040: Department of the Treasury
Internal Revenue Service
Fresno, CA  93888-0002
Internal Revenue Service
P.O. Box 802501
Cincinnati, OH 45280-2501
1040A: Department of the Treasury
Internal Revenue Service
Fresno, CA  93888-0015
Internal Revenue Service
P.O. Box 802501
Cincinnati, OH 45280-2501
1040EZ: Department of the Treasury
Internal Revenue Service
Fresno, CA  93888-0014
Internal Revenue Service
P.O. Box 802501
Cincinnati, OH 45280-2501