Thursday, July 3, 2008

Arkansas State Income Tax Rates

Before using our Income Tax Calculator, here are some basic tax principles that you should know. Arkansas state income tax along with a federal tax is usually withheld from your paycheck as you receive it each pay cycle. While the federal income tax rates are set for each income bracket, AR state income tax rates do not necessarily align with the federal figures.

The variable income tax rate for Arkansas is determined by AR state tax legislation. How much income tax that is withheld from your paycheck depends on which tax bracket you fall under. In general the more you make, the more you will be taxed. To find out more about AR income tax, sales tax, W4 forms, 1040 forms, tax returns, current state tax rates and general Arkansas tax information, click here for the Office of Income Tax Administration, Individual.

How Arkansas State income tax rates are structured

The tax table below will show in detail the Arkansas state income tax rates by income tax bracket(s). There are 6 income tax brackets for Arkansas.

If your income range is between $0 and $3,399, your tax rate on every dollar of income earned is 1%.

If your income range is between $3,400 and $6,799, your tax rate on every dollar of income earned is 2.5%.

If your income range is between $6,800 and $10,299, your tax rate on every dollar of income earned is 3.5%.

If your income range is between $10,300 and $17,099, your tax rate on every dollar of income earned is 4.5%.

If your income range is between $18,100 and $28,499, your tax rate on every dollar of income earned is 6%.

If your income range is $28,500 and over, your tax rate on every dollar of income earned is 7%.

Income tax brackets data as of December 31st, 2004.

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