Arkansas corporate income tax is a graduated rate applied to the Arkansas Net Taxable Income (NTI) for tax year beginning January 1, 2024, as follows:
| Taxable Income | Tax Rate |
|---|---|
$0-$3,000 | 1% |
$3,001-$6,000 | 2% |
$6,001-$11,000 | 3% |
$11,001+ | 4.3% |
Act 1 of the Third Extraordinary Session of the 93rd General Assembly amended the Arkansas Code at §26-51-428(a) to adopt the U.S. federal tax code at Title 26 U.S.C. §179 for calculating Arkansas income tax liability for depreciation of property. This is effective for property purchased in tax years beginning on or after January 1, 2022.
If a business activity is derived from activity inside and outside the state of Arkansas, it is apportioned for taxation according to the percentage of sales attributable to Arkansas pursuant to the multi-state compact.
| Tax Year | Arkansas Sales | Elsewhere Sales |
| 2024 | 85.71% | 14.29% |
| 2025 | 71.42% | 28.58% |
| 2026 | 57.13% | 42.87% |
| 2027 | 42.84% | 57.16% |
| 2028 | 28.55% | 71.45% |
| 2029 | 14.26% | 85.74% |
| 2030 | 0% | 100% |
Beginning with the 2021 tax year, a corporation doing business in Arkansas and sustaining a net operating loss may carry forward the loss to the next succeeding taxable year and annually thereafter for a total period of ten years succeeding the year of such loss and deduct it from Arkansas taxable income.
Qualified biofuels manufacturers investing at least $20 million and creating at least 100 new jobs may receive income tax exemptions for up to 20 years. Qualified windmill blade or component manufacturers classified under NAICS Code 333611 may receive income tax exemptions for up to 25 years based upon the investment, job created, tier status and employee wages.