Arkansas Taxes 2025
Complete tax guide and OBBBA calculator for AR residents
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Arkansas Tax Overview 2025
State Income Tax
2% - 4.4%
Graduated rate structure
Combined Sales Tax
9.47%
State 6.50% + Local 2.97%
Avg Property Tax
0.62%
Below average property taxes
💼 Arkansas Income Tax 2025
Arkansas has graduated income tax rates from 2% to 4.4%.
When filing your Arkansas state tax return, your income tax liability depends on your taxable income and filing status. Arkansas uses a graduated income tax structure.
Arkansas Income Tax Quick Facts
🛒 Arkansas Sales Tax 2025
Arkansas's combined average sales tax rate is 9.47%, which includes both state and local components. The state sales tax rate is 6.50%, while local jurisdictions add an average of 2.97%.
Sales Tax Breakdown
💡 Tip: Local sales tax rates vary by city and county. Your actual rate may be higher or lower depending on where you shop.
🏠 Arkansas Property Tax 2025
Arkansas's average effective property tax rate is 0.62%. Below average property taxes.
Property taxes in Arkansas are assessed at the local level by counties and municipalities. Rates can vary significantly between jurisdictions.
Example Annual Property Tax
| Home Value | Est. Annual Tax | Monthly |
|---|---|---|
| $250,000 | $1,550 | $129 |
| $400,000 | $2,480 | $207 |
| $600,000 | $3,720 | $310 |
OBBBA Tax Benefits for Arkansas Residents
Arkansas residents benefit from federal OBBBA deductions reducing overall tax burden.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several new federal tax deductions that Arkansas residents can claim starting with their 2025 tax returns.
Available OBBBA Deductions for AR Residents:
Calculate Your Arkansas Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Arkansas resident.
Calculate My SavingsHow Arkansas Compares
| Tax Type | AR Rate | US Average | Comparison |
|---|---|---|---|
| Income Tax (Top Rate) | 2% - 4.4% | 5.1% | Varies |
| Sales Tax | 9.47% | 7.12% | Above Avg |
| Property Tax | 0.62% | 1.10% | Below Avg |
Frequently Asked Questions
What is the income tax rate in Arkansas?
Arkansas has a graduated income tax with rates of 2% - 4.4%. Arkansas has graduated income tax rates from 2% to 4.4%.
What is the sales tax in Arkansas?
The combined average sales tax rate in Arkansas is 9.47%. This includes the state rate of 6.50% plus an average local rate of 2.97%.
How do OBBBA deductions benefit Arkansas residents?
Arkansas residents benefit from federal OBBBA deductions reducing overall tax burden. Arkansas residents can claim tips, overtime, auto loan interest, SALT, and senior bonus deductions on their federal returns.
When are Arkansas taxes due?
For tax year 2025, Arkansas state taxes are due on April 15, 2026, the same date as federal taxes. Extensions may be available if you need more time to file.