What is Arkansas Income Tax? Rates & Tax Brackets

Updated for tax year 2025.

If you live or work in Arkansas, you’ll likely need to file an Arkansas state income tax return along with your federal return. Arkansas uses a progressive income tax structure with rates that depend on your net taxable income and which tax table applies to your return.

This guide explains Arkansas’s 2025 income tax rates and brackets, standard deduction, available exemptions and credits, and the updates for the current tax year. When you’re ready to file, TaxAct® automatically applies Arkansas’s tax rules to help you accurately prepare your Arkansas return alongside your federal return.

What is the Arkansas state income tax?

Arkansas state income tax is a tax on income earned by individuals. It is collected by the Arkansas Department of Finance and Administration (DFA) and helps fund state services.

Arkansas uses a progressive income tax structure with indexed tax brackets. For tax year 2025, the top marginal individual income tax rate is 3.9%, reduced under Act 1 of the Second Extraordinary Session of 2024. Arkansas taxpayers generally calculate tax using either the Low Income Tax Table or the Regular Tax Table, depending on income, filing status, and whether they claim certain exclusions.

Arkansas income tax rates and tax brackets

To estimate your Arkansas tax bill or refund, it helps to understand the state’s income tax brackets. Regardless of filing status, all taxpayers in the state of Arkansas are subject to the same tax rates within each bracket structure. Below are the bracket tables carried from the live Arkansas refund page.

Income tax rate for individuals with net income of less than or equal to $92,300:

Income	Tax Rate
$0 to $5,599	0.0%
$5,600 to $11,199	2.0%
$11,200 to $15,999	3.0%
$16,000 to $26,399	3.4%
$26,400 to $94,700	3.9%

The income tax rate for individuals with net income of greater than $94,700 is also 3.9%.

If you need more information on how federal tax brackets work, you can use our tax bracket calculator for federal taxes. See the 2025 Arkansas indexed tax brackets and 2025 tax tables for official rate information.

Arkansas standard deduction

Arkansas taxpayers can itemize their deductions or claim the standard deduction on their state returns. For tax year 2025, Arkansas standard deduction amounts are:

Filing Status	2025 Standard Deduction
Single	$2,470
Married Filing Jointly	$4,940
Head of Household	$2,470
Married Filing Separately (each spouse)	$2,470
Surviving Spouse	$2,470

If your adjusted gross income is less than the standard deduction for your filing status, you generally enter the amount from your adjusted gross income instead. Taxpayers who itemize must use the Regular Tax Table and complete Form AR3. See the 2025 AR1000 instructions for details.

Arkansas exemptions

Different types of income are not considered taxable in the state of Arkansas. For example, Social Security benefits are not taxed. The service pay or allowance received by an active duty member of the armed forces is 100% exempt from Arkansas income tax. That covers all members of the armed services, including the National Guard and Reserve Units.

Arkansas also offers other exemptions and credits that may reduce your tax, such as a retirement income exemption (up to $6,000 for qualifying taxpayers), personal tax credits for age 65 or older, blind, or deaf taxpayers, and exemptions for certain military retirement and pension income. Eligibility and limits depend on your age, income sources, and other factors, so review DFA guidance or your AR1000 instructions before filing.

Arkansas tax changes for 2025

For tax year 2025, Arkansas’s top marginal individual income tax rate is 3.9%, as amended under Act 1 of the Second Extraordinary Session of 2024. Tax brackets continue to be indexed annually for inflation, and standard deduction amounts increased to $2,470 for most filers and $4,940 for married filing jointly.

Arkansas uses selective conformity to the Internal Revenue Code, meaning the state adopts specific federal provisions rather than automatically following all federal tax law changes. See the Arkansas DFA individual income tax page and the 2025 AR1000 instructions for a full list of legislative tax changes.

FAQs

Does Arkansas have a state income tax?

Yes, Arkansas has a state income tax. Arkansas uses progressive income tax rates for tax year 2025, with different bracket structures depending on whether your net taxable income is above or below the state’s indexed threshold. The top marginal rate for 2025 is 3.9%.

What is the Arkansas income tax rate?

Arkansas’s 2025 income tax rates range from 0% to 3.9%, depending on your net taxable income and which tax table applies. Taxpayers with net income above the indexed threshold generally use a simplified two-bracket structure with a top rate of 3.9%.

What are the Arkansas income tax brackets for 2025?

Arkansas’s 2025 tax brackets depend on your net taxable income level. Taxpayers with net income at or below the indexed threshold use a five-bracket structure (0% through 3.9%), while those above the threshold use a two-bracket structure (2.0% and 3.9%). See the Arkansas income tax brackets tables above.

How does Arkansas state income tax work?

Arkansas state income tax generally starts with your total income, then applies Arkansas exemptions, additions, and subtractions to arrive at adjusted gross income. You subtract your standard deduction or itemized deductions to determine net taxable income, then calculate tax using either the Low Income Tax Table or the Regular Tax Table.

Do I have to file an Arkansas state tax return?

You may need to file an Arkansas state tax return if you are an Arkansas resident required to file a federal return, or if you have Arkansas-source income as a nonresident or part-year resident. Filing requirements depend on your income, residency, and other factors, so check Arkansas Department of Finance and Administration guidance for your situation.

What is the Arkansas standard deduction for 2025?

For 2025, Arkansas standard deduction amounts are $2,470 for single filers, head of household, and most other filing statuses, and $4,940 for married filing jointly. Married filing separately on different returns each claim $2,470. You may claim the standard deduction or itemize on Form AR3, whichever provides the greater tax benefit.

How much is Arkansas state income tax?

There isn’t one Arkansas state income tax amount that applies to everyone. How much you owe depends on your net taxable income, which tax table you qualify for, available exemptions and credits, and whether you claim the standard deduction or itemize. Use the brackets above and the 2025 AR1000 instructions as a starting point.

Why is my Arkansas tax return different from my federal return?

Arkansas uses selective conformity to the Internal Revenue Code rather than automatically adopting all federal tax changes. Arkansas has its own standard deduction amounts, exemptions for items such as Social Security and active-duty military pay, and rules for choosing between the Low Income Tax Table and Regular Tax Table — all of which can make your Arkansas taxable income different from your federal return.

The good news is that our tax software automatically applies Arkansas’s current tax rules when preparing your state return, so you don’t have to calculate these differences yourself.

For more information, visit the Arkansas Department of Finance and Administration. If you’d like to learn more about recent federal tax law changes, see our OBBB tax changes guide.

The bottom line

Arkansas has a progressive state income tax for 2025 with a top rate of 3.9% and bracket structures that depend on your net taxable income level. Knowing the brackets, 2025 standard deduction amounts, and available exemptions such as Social Security and active-duty military pay can help you estimate what you may owe or get back.

When you’re ready to file, TaxAct can help you prepare your federal and Arkansas returns in one place so you can file with confidence.

Already filed your taxes and waiting for your refund? Learn more about where your Arkansas state tax refund is.

This article is for informational purposes only and not legal or financial advice.

All TaxAct offers, products and services are subject to applicable terms and conditions.

The OBBB is now also being referred to by lawmakers as the Working Families Tax Cut Act. You may see one or both names used here, but they refer to the same set of tax changes.

Citations

Arkansas Department of Finance and Administration. “Individual Income Tax.” Accessed 6 Aug. 2026.
Arkansas Department of Finance and Administration. “2025 AR1000F and AR1000NR Instructions.” Accessed 6 Aug. 2026.
Arkansas Department of Finance and Administration. “2025 Indexed Tax Brackets.” Accessed 6 Aug. 2026.
TaxAct. “Working Families Tax Cuts Act: 2025 Tax Reform Explained.” TaxAct Blog.
TaxAct. “Where’s My Arkansas State Tax Refund?” TaxAct Blog, 16 Jan. 2026.