Arkansas State Income Tax in 2025: A Guide

Arkansas has a graduated state income tax with rates up to 3.9%. Unlike states with flat tax rates or states with no income tax at all, Arkansas uses a progressive system where the rates increase with income. For example, taxpayers who earn more than $25,700 in taxable income pay the highest rate (3.9%), while those earning less than $5,500 pay no state income tax. 

In this guide, we’ll cover everything you need to know to confidently file your Arkansas state income taxes for the 2024 tax year (the taxes you file in 2025). You’ll find key details about tax brackets, standard deductions, residency rules, and special deductions or credits available to taxpayers.  

*Note that you are still responsible for federal taxes if you meet the IRS income filing threshold. This article addresses state-specific taxes only. 

Arkansas state income tax rates

As mentioned earlier, Arkansas’ income tax system works on a graduated scale, meaning taxpayers with higher incomes are taxed at higher rates. 

Taxable Income	Rate	Minus Adjustment
$0 to $5,499	0%	N/A
$5,500 to $10,899	2%	$109.98
$10,900 to $15,599	3%	$218.97
$15,600 to $25,699	3.4%	$281.37
$25,700 and higher	3.9%	Varies

Source: Arkansas Department of Finance and Administration

Note that Arkansas has two tax tables that determine your specific tax liability—a low income tax table and a regular tax table. When you file with TurboTax, we’ll help determine which tax table applies to you. 

Low income and regular tax tables

To determine if you should use the low income tax table, verify that your adjusted gross income falls into the following ranges based on filing status and number of dependents.

Filing Status	Number of Dependents	Adjusted Gross Income
Single	Any	$17,000 and below
Head of Household or Surviving Spouse	1 or none	$24,600 and below
	2 or more	$28,200 and below
Married filing jointly	1 or none	$28,300 and below
	2 or more	$35,100 and below

There are a few other important qualifications you must meet in order to use the low income tax rates. If any of the following apply to you — even if you fall into the income limits above — you cannot use the low income tax rates and must use the regular tax table.  

• Your filing status is Married Filing Separately 
• You use an exemption for military compensation, military retirement, or employment-related pension income 
• You itemize your deductions 

If you don’t qualify to use the low income tax table, you must use the regular tax table.

What is the standard deduction in Arkansas?

Taking the standard deduction reduces your taxable income, which can lower the amount of tax you owe and increase your Arkansas state income tax refund.  

Claiming the standard deduction is more straightforward than itemizing deductions. When you itemize your deductions, you need to document eligible deductible expenses, such as medical costs, mortgage interest, and charitable donations. It’s generally best to take the standard deduction if your total eligible expenses are less than the itemized deduction amount. 

In Arkansas, your standard deduction amount depends on your filing status. There are only two standard deductions: 

• $2,410 for all filing statuses except Married Filing Jointly 
• $4,820 for Married Filing Jointly status

Not sure whether to itemize or opt for the standard deduction? TurboTax will determine the best option for you to maximize your tax savings.

Who has to file Arkansas state income tax?

Anyone earning income in Arkansas may need to file a state income tax return. Filing requirements depend on your gross income, filing status, and residency status. Gross income includes all earnings before deductions, such as wages, tips, rental income, and other sources. 

For the 2024 tax filing year, you must file a tax return if your gross income exceeds the minimum thresholds for your filing status in the table below: 

Filing Status	Number of Dependents	Gross Income
Single	Not applicable	$14,266
Head of Household	1 or none	$20,283
	2 or more	$24,177
Married Filing Jointly	1 or none	$24,058
	2 or more	$28,954
Married Filing Separately	Not applicable	$9,410
Surviving Spouse	1 or none	$20,283
	2 or more	$24,177

Source: Arkansas Department of Finance and Administration

These thresholds apply to full-year residents. Part-year residents and nonresidents who received any gross income from Arkansas sources must file a return, regardless of filing status. We’ll explore the different Arkansas residency statuses next.

How Arkansas residency impacts tax filing

Arkansas defines three residency statuses for state tax purposes: resident, part-year resident, and nonresident. Your residency status determines which portion of your income is subject to Arkansas state taxes. 

Full-year residents are taxed on all income, regardless of source, while part-year residents and nonresidents are only taxed on income earned within the state or sourced from Arkansas. Refer to the chart below for an explanation of each residency status, who qualifies, and how Arkansas taxes income for each group: 

Residency Status	Definition	How Arkansas Taxes Income
Full-year resident	You lived in Arkansas for the entire tax year, or Arkansas is your permanent home.	Arkansas requires you to file taxes based on your income bracket (see chart above). All income, no matter where it is earned, is taxed by Arkansas.
Part-year resident	You lived in Arkansas for part of the tax year but established residency or moved out of state.	Arkansas taxes any income earned while you were a resident, as well as any Arkansas-sourced income earned as a nonresident.
Nonresident	You lived outside Arkansas during the tax year but earned income from Arkansas sources.	Arkansas taxes any income earned from Arkansas sources.

Other income tax considerations in Arkansas

Certain types of income are taxed differently in Arkansas, offering exemptions or reduced rates for qualifying taxpayers. Below is a summary of key considerations: 

• Retirement and pension income tax: Military pensions, Veterans Affairs (VA) benefits, and railroad retirement benefits are tax-exempt. The first $6,000 of employer-sponsored retirement plans is also exempt. 
• Investment income tax: Capital gains are taxed at the same rate as personal income. 
• Social Security income tax: Social Security benefits are fully exempt from state income tax. 
• Military income tax: Active-duty military pay is 100% exempt. 

These tax treatments can significantly affect your overall tax liability. TurboTax can help you maximize your exemptions and ensure accurate filing.

Common Arkansas state tax deductions and credits

Arkansas offers several deductions and credits to help reduce your taxable income or directly lower the taxes you owe. Here’s a look at some of them: 

Tax Credit	Description	Amount
Post-Secondary Tuition Deduction	Deduction for qualifying tuition paid for higher education.	Lesser of 50% of actual tuition or 50% of “weighted average tuition.”
Child Care Credit	Credit for expenses related to child care for qualifying dependents.	20% of federal Child Care Tax Credit.
Other State Tax Credit	Credit on your Arkansas return for tax paid to another state.	Varies by amount paid, but can’t exceed Arkansas state income tax on that same income or total tax you owe Arkansas. Nonresidents are not eligible for this credit.
Adoption Credit	Credit for qualified adoption expenses.	20% of federal credit.
Political Contributions Credit	Credit for contributions to political candidates or parties in Arkansas.	$50 per taxpayer; $100 for a joint return.
Personal Tax Credit	Exemptions given to Arkansas residents for various special circumstances (65 years old or older, deaf, or blind)	$29 per qualifying event that applies.

These deductions and credits can significantly impact your tax savings. TurboTax helps ensure you claim every benefit you’re eligible for. 

For a list of Arkansas’ deductions and credits, review their list of Tax Credits and Special Refunds Forms.

How to file Arkansas state income tax

Filing your Arkansas state income tax return doesn’t have to be complicated. With unique residency rules, tax deductions, and credits, navigating the process can feel overwhelming. The good news is that TurboTax is here to help. 

Whether you prefer to file on your own or you want professional assistance, TurboTax can help you every step of the way. We’ll ensure that you get every deduction and credit you qualify for, helping you keep more of your hard-earned money. 

Want extra support? Connect with a local tax expert who specializes in Arkansas tax rules. From start to finish, we’ll make sure your taxes are accurate and that you maximize your refund. No matter your residency status or income sources, TurboTax has you covered. 

Ready to file? Get started today and enjoy a stress-free tax season.