Arkansas Tax Calculator 2025
Calculate your Arkansas state income tax with our comprehensive 2025 calculator featuring the Natural State's progressive tax rates from 2% to 5.9%, Southern agricultural benefits, and advanced tax planning tools for Arkansas's diverse economy.
Calculate Your Arkansas Tax
Enter your income information to calculate Arkansas's progressive state income tax with rates ranging from 2% to 5.9% plus applicable deductions and Natural State considerations.
Arkansas Tax Structure 2025
Arkansas operates a progressive income tax system with rates ranging from 2% to 5.9%, making it a moderate-tax Southern state. The Natural State provides various benefits for retirees, military veterans, and agricultural businesses.
AR Progressive Tax Brackets (2025)
- 2% on income up to $4,999
- 4% on income $5,000-$9,999
- 5.9% on income $10,000-$13,099
- 6% on income $13,100-$21,199
- 7% on income $21,200-$35,099
- 6.5% on income over $35,100
Standard Deductions (2025)
- Single: $2,340
- Married Filing Jointly: $4,680
- Married Filing Separately: $2,340
- Head of Household: $3,450
Arkansas Tax Benefits and Natural State Advantages
Arkansas provides several valuable tax benefits, particularly for retirees, military veterans, and agricultural businesses. The state's Southern charm and moderate tax rates make it attractive for many taxpayers.
- Personal Exemption: $29 per taxpayer (very low exemption)
- Military Retirement Exemption: Full exemption for military retirement pay
- Retirement Income Exemption: Up to $6,000 exemption for other retirement income
- Social Security Exempt: Social Security benefits are not subject to Arkansas tax
- Agricultural Property Tax: Special use valuation for agricultural land
- Farm Equipment Exemption: Sales tax exemption for agricultural machinery
- Income Averaging: Available for qualifying agricultural operations
Arkansas Residency and Southern Tax Planning
Understanding Arkansas residency requirements and Southern tax planning strategies is important given the state's agricultural economy and moderate income tax structure.
Establishing AR Residency
Arkansas considers you a resident if you are domiciled in Arkansas or you maintain a permanent place of abode in Arkansas and spend more than 183 days in the state during the tax year.
Agricultural Tax Benefits
Arkansas's agricultural economy benefits from special property tax treatment for agricultural land, sales tax exemptions for farm equipment and inputs, and income averaging provisions for farm income fluctuations.
Sales Tax Considerations
Arkansas has a state sales tax rate of 6.5% with local additions possible. Agricultural exemptions help offset this burden for farming operations and rural communities.
Retirement Income Planning
Arkansas's military retirement exemption and partial retirement income exemption ($6,000) plus no tax on Social Security makes it moderately retirement-friendly. Plan retirement withdrawals to maximize Arkansas's favorable treatment.
Frequently Asked Questions
What are Arkansas's income tax rates for 2025?
Arkansas has progressive income tax rates ranging from 2% to 5.9% for 2025. The rates increase across six brackets, with the top rate of 5.9% applying to income over $79,300 for all filing statuses.
Is Arkansas tax-friendly for retirees?
Yes, Arkansas is very retirement-friendly with no tax on Social Security benefits, no tax on military retirement pay, and a partial exemption for other retirement income up to $6,000.
What is Arkansas's sales tax rate?
Arkansas has a state sales tax rate of 6.5%, with local jurisdictions able to add additional sales tax, resulting in combined rates typically ranging from 6.5% to 11.5% depending on location.
How does Arkansas tax agricultural income?
Arkansas provides favorable treatment for agricultural income including special use valuation for agricultural land, sales tax exemptions for farm equipment and inputs, and income averaging for qualifying farm operations.
What deductions are available for Arkansas taxpayers?
Arkansas offers standard deductions, personal exemptions, military retirement income exemption, partial retirement income exemption, and various agricultural deductions for qualifying farming operations.
How does Arkansas compare to neighboring states for taxes?
Arkansas has moderate tax rates compared to neighboring states. It's higher than Tennessee and Texas (no income tax) but competitive with Missouri, Louisiana, and Mississippi when considering overall tax burden.