Personal Income Tax
Resident and nonresident individuals, estates, and trusts deriving income from within the state are subject to a tax on their net income at the following rates:
| Net Taxable Income | Rate | Net Taxable Income | Rate |
|---|---|---|---|
|
Less than $3,800
|
1.0% | Next $11,400 | 4.5% |
| Next $3,800 | 2.5% | Next $19,000 | 6.0% |
| Next $3,800 | 3.5% | $31,700& over | 7.0% |
To arrive at net taxable income, the taxpayer may elect to either itemize deductions or to use the standard deduction of $2,000 per taxpayer. (Married couples may deduct $2,000 per spouse.) Federal income tax is not deductible from income subject to Arkansas's personal income tax.
A credit is allowed resident individuals for the amount of income tax paid to any other state not to exceed what the tax would be on out-of-state income if added to the Arkansas income and calculated at Arkansas income tax rates. The following personal tax credits are allowed:
|
Single individuals |
$23 |
| Head of Household | $23 |
| Dependents with gross income of less than $3,000 | $23 |
| Fiduciaries | $23 |
| 65 or older head of household - Spouse 65 or older, additional $23 |
$23 |
| Credit for "developmentally disabled" dependent in home | $500 |
