The Kiplinger Tax Map: Guide to State Income Taxes, State Sales Taxes, Gas Taxes, Sin Taxes
Tool | Updated October 2019

State-by-State Guide to Taxes

Compare state tax rates and rules — on income, ordinary purchases, gas, sin products, property, and more — across the U.S.

Arkansas

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The Bottom Line
Flag of Arkansas

Not Tax Friendly

Property taxes are low in the Natural State, but sales taxes are the tied (with Tennessee) for the highest in the country — even groceries are taxed (albeit at a lower rate). Income tax is particularly complicated in Arkansas, as the state uses multiple rate schedules that give it 16 different tax brackets, in practice.

Sales Tax

6.5% state levy. Localities can add as much as 5.13%, and the average combined rate is 9.47%, according to the Tax Foundation. The state taxes food at .125%, and localities can add to that.

Income Tax Range

Low: 0.9% (on up to $4,499 of taxable income)

High: 6.9% (on more than $79,301 of taxable income)

Effective tax rate: 3.56% for single filers, 6.15% for joint filers.

Service pay for active-duty members of the armed forces is completely exempt from income tax.

Motor Fuel Taxes

Gasoline: $0.2480 per gallon.
Diesel: $0.2880 per gallon.

Property Taxes

In Arkansas, residents pay an average of $658 in taxes per $100,000 of assessed home value.

Vehicle Taxes

The state sales tax on vehicle purchases over $4,000 is 6.5% (7% for Texarkana residents). Sales below that threshold are tax-free. A local property tax is also levied annually on a car’s assessed value. Rates are set at the county level. For example, in Little Rock you pay $64.30 per $1,000. The tax on a $30,000 vehicle would be $1,929.

Sin Taxes

Cigarettes: $1.15 per pack
Premium cigars (selling for more than $0.76 per cigar) are taxed $0.50 each plus 2% of the wholesale price.
All other tobacco products: 68% of the manufacturer’s price

Beer: $0.34 per gallon
Wine: $1.44 per gallon
Liquor: $7.73 per gallon

Taxes On Wireless Service

15.22%

Inheritance and Estate Taxes

None

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