Arkansas State Taxes

Arkansas Income Tax

In 2014, the top income tax rate in Arkansas was 7%. Over the last decade, however, Arkansas has steadily decreased its personal income tax rate. In 2025, the top tax rate fell to 3.9%, the lowest in Arkansas’ history. Residents and non-residents are now subject to a tax on their net income at the following rates:

Net Income of Less Than or Equal to $92,300

Net Income	Tax Rate
$0 – $5,499	0%
$5,500 – $10,899	2%
$10,900 – $15,599	3%
$15,600 – $25,699	3.4%
$25,700 – $92,300	3.9%

Net Income Greater Than $92,300

Net Income	Tax Rate
$0 – $4,600	2%
$4,601 and above	3.9%

Who Must File?

Full-year residents are required to file an income tax return (AR1000F) if they meet the following requirements:

If your marital status is:	And your filing status is:	File if gross income is at least
Single (includes divorced and legally separated)	Single	$14,644
	Head of Household with 0 or 1 dependent	$20,821
	Head of Household with 2+ dependents	$24,819
Married	Married Filing Jointly with 0 or 1 dependent.	$24,696
	Married Filing Jointly with 2+ dependents	$28,723
	Married Filing Separately	$9,470
Unmarried Surviving Spouse	Surviving Spouse with 1 or no dependents	$20,821
	Surviving Spouse with 2+ dependents	$24,819

Part-year residents who receive any gross income while living in Arkansas must file a tax return (AR1000NR) regardless of marital status, filing status, and amount earned. Non-residents are also required to file (AR1000NR) if they received any gross income from Arkansas sources.

You can find more information about 2025 tax forms and instructions here.

Arkansas Sales Tax

Arkansas has a state sales tax rate of 6.5%. Local governments can also impose an additional sales tax of up to 6.125%. The average combined sales tax rate (state & city) is 9.47%, which is the third highest in the country. The city of Gillham has the highest combined sales tax rate at 12.625%.

Arkansas is also one of 13 states that still impose a sales tax on groceries (food), though it is the lowest at .125%.

Arkansas Property Taxes

Arkansas does not impose a state property tax. Instead, property taxes are collected at the city and county levels. Arkansas currently has one of the lowest median property tax rates in the country at an average of .59% of a property’s assessed fair market value.

The highest property tax is in Benton County, which collects an average of $1,602. Calhoun County has the lowest at $412. The state’s median property tax is a modest $1,007.

Arkansas Property Tax

Highest	$1602
Median	$1007
Lowest	$412

Yearly Cost Per Resident

Arkansas Tax Holidays

Each year, the state of Arkansas hosts a sales tax weekend that begins at 12:01 AM on the first Saturday of August and ends at 11:59 PM the following day (Sunday). Items exempt from sales tax (state and local) include:

• Clothing and footwear ($100 or less per item)
• Clothing accessories and equipment ($50 or less per item)
• School supplies (including art supplies and instructional materials)
• Electronic devices commonly used in the course of study

Arkansas Tax Relief

If you’re having trouble paying your Arkansas income taxes, you’re not alone. Whether your tax debt stems from an unexpected hardship, late tax returns, or a business tax issue, ignoring the problem can lead to additional penalties, interest, and potential collection actions. The sooner you address your tax problem, the more options you may have to solve it.

Thankfully, there are several ways to resolve Arkansas tax debt depending on your financial situation. From payment plans to an Offer in Compromise and other resolution options, taking action early can help you regain control of your finances and avoid more serious collection efforts.

Understanding how Arkansas collects unpaid taxes and the relief options available to you is the first step toward resolving your tax issues.

Common Arkansas State Tax Problems

How Arkansas Collects Tax Debt

If you don’t pay your Arkansas income taxes by the due date, the Department of Finance & Administration will send a Notice of Delinquency that details the amount past due, as well as any penalties and interest owed.

If your balance remains unpaid, the state may file a Certificate of Indebtedness, which creates a lien on your real and personal property. Additionally, the state may pursue enforced collection actions to recover the debt, such as wage garnishment and bank levies.

Because penalties and interest continue to accrue until the balance is paid, addressing your tax debt as early as possible can help you avoid additional costs and more serious collection actions.

Taxpayer receives Notice of Delinquency

Certificate of Indebtedness is filed

If not paid, case referred to Collections

Arkansas State Tax Relief Options

Arkansas offers several state tax relief options, including:

• Income Tax Payment Plans – Arkansas taxpayers who cannot pay their balance in full may apply for a payment plan online or by calling 501-682-5000.
• Penalty Abatement – The state may abate penalties for reasonable cause. An abatement request can be made by submitting an Individual Income Tax Penalty and Interest Waiver Request by mail, fax (501-682-7692), or email (individual.income@dfa.arkansas.gov).
• Offer in Compromise – Financially distressed taxpayers may be able to settle their tax debt for less through an Offer in Compromise. Each case is evaluated on its own unique set of circumstances and must meet the criteria set forth under 2000-4 DFA Rule.

If you’re experiencing financial hardship and can’t pay your Arkansas tax bill, contact the Arkansas Department of Finance and Administration as soon as possible to discuss payment options and potential alternatives to collection actions.

When to Seek Tax Relief Help

If you’re experiencing any of the following, it may be time to explore your tax relief options:

The sooner you address your tax debt, the more options you may have available to resolve your balance and minimize additional collection actions.

Arizona Tax Relief FAQs

How do I set up an Arkansas payment plan?

If you’re unable to pay your Arkansas tax bill in full, you may be eligible to set up a monthly payment plan through the Arkansas Office of Collections. You can reach them by phone at 800-292-9829, by fax at 501-682-3534, or by email at Collections.Research@dfa.arkansas.gov.

What happens if I ignore Arkansas tax notices?

Ignoring notices from the Arkansas Department of Finance & Administration can result in additional penalties and interest, and your account may eventually be referred to the Office of Collections. Once that happens, the state may pursue collection actions such as wage garnishments, bank levies, tax liens, or other methods allowed by law. Responding to notices as early as possible can help you avoid more serious enforcement actions.

Can Arkansas garnish my wages for unpaid taxes?

Yes. If you have an unpaid Arkansas tax balance and do not make arrangements to resolve it, the Arkansas Office of Collections may garnish your wages. Wage garnishment allows a portion of your paycheck to be withheld until the tax debt is paid in full or another resolution is reached.

Can Arkansas levy my bank account?

Yes. In certain situations, the Arkansas Office of Collections may levy your bank account to collect unpaid state taxes. A bank levy allows the state to seize funds from your account to satisfy an outstanding tax debt. Acting quickly after receiving collection notices may help you avoid this type of enforcement action.

How long does Arkansas have to collect unpaid taxes?

Once your tax is officially assessed, the Arkansas Department of Finance & Administration typically has 10 years to collect the debt. This window, however, may change depending on whether a return was filed or if special circumstances apply. If you file a fraudulent return, there is no time limit, and the state can pursue the unpaid debt indefinitely.

Arkansas Tax Resources

If you need assistance preparing your Arkansas state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.

You can also visit the Arkansas Department of Finance and Administration’s website for additional resources.

• Arkansas Taxpayer Access point (ATAP)
• Check Refund Status
• Individual Income Tax Hotline: 800-882-9275 or 501-682-1100
• ATAP Helpline: 877-280-2827
• Individual Income Tax Forms