Arkansas state income tax runs on a graduated scale from 2% to 3.9%, with the top rate reached quickly — above roughly $4,600 of net income for higher earners, and above about $25,700 for everyone else. You file a return by April 15 on Form AR1000F if you lived in Arkansas all year, or Form AR1000NR if you were a part-year resident or nonresident with Arkansas-source income. Whether you have to file at all depends on your gross income and filing status, starting at $14,644 for single filers.
Rates and Brackets
Arkansas has an unusual setup: two separate rate tables, and the one you use depends on your total net income for the year.1Justia. Arkansas Code 26-51-201 – Tax Imposed
If Your Net Income Is Over $92,300
A simplified two-bracket table applies:2Arkansas Economic Development Commission. Personal Income Tax Rates in Arkansas
- $0 to $4,600: 2.0%
- Over $4,600: 3.9%
If Your Net Income Is $92,300 or Less
A more graduated table with lower rates on middle income applies:
- Below $5,500: 0%
- $5,500 to $10,899: 2.0%
- $10,900 to $15,599: 3.0%
- $15,600 to $25,700: 3.4%
- $25,701 to $92,300: 3.9%
Rates apply only to the income inside each bracket, not to your whole income. Someone earning $20,000 pays nothing on the first $5,499, 2% on the next slice, 3% on the next, and 3.4% only on the portion above $15,600. Bracket thresholds are adjusted annually for inflation, so the exact cutoffs shift slightly from year to year.1Justia. Arkansas Code 26-51-201 – Tax Imposed
Who Has to File
If your gross income reaches the threshold for your filing status, you must file an Arkansas return. The current thresholds from the Department of Finance and Administration are:3Arkansas Department of Finance and Administration. Individual Income Tax Forms and Instructions
- Single: $14,644
- Head of household, 1 or no dependents: $20,821
- Head of household, 2 or more dependents: $24,819
- Married filing jointly, 1 or no dependents: $24,696
- Married filing jointly, 2 or more dependents: $28,723
- Married filing separately: $9,470
- Surviving spouse, 1 or no dependents: $20,821
- Surviving spouse, 2 or more dependents: $24,819
Gross income for this test means all income before deductions, with specific exempt categories like active duty military pay factored in.
Resident, Part-Year, or Nonresident
You count as an Arkansas resident if any one of three things is true: you’re domiciled in Arkansas; you keep a permanent residence there and spend more than six months of the year in the state; or the overall facts of your life show Arkansas as your primary home.4Legal Information Institute. Arkansas Code Regulation 51-102(9) – Residency Determination Exactly six months does not trigger residency; it has to be more.
Residents file Form AR1000F. If you moved into or out of Arkansas during the year, or you live elsewhere but earned Arkansas-source income (rental property, work performed in the state), you file Form AR1000NR and report only the Arkansas income. Arkansas has no reciprocity agreements with any other state, so a worker who lives in a bordering state and works in Arkansas owes Arkansas tax and must claim a credit on the home-state return to avoid double taxation.
What’s Exempt and What Reduces Your Bill
Several categories of income are either fully exempt from Arkansas tax or sheltered up to a cap.
Social Security. Fully exempt, with no income limit or phase-out.
Retirement and pension income. The first $6,000 of retirement or pension income is exempt, whether it comes from a public pension, a private employer plan, or an IRA. The $6,000 is a per-taxpayer-per-year cap; you can’t stack multiple income streams to get a larger exemption. Taxpayers 65 or older who don’t claim this exemption can take an additional $20 income tax credit instead.5Justia. Arkansas Code 26-51-307 – Retirement or Disability Benefits
Military pay. Active duty military pay is fully exempt. National Guard and Reserve members not on active duty get a partial exemption: the first $9,000 of service pay is tax-free.6FindLaw. Arkansas Code Title 26 Taxation 26-51-306 A reservist earning $30,000 in drill pay would owe Arkansas tax only on $21,000.
Personal tax credit. Every taxpayer gets a credit that directly reduces tax owed. The base amount is $20 for individuals and $40 for joint filers, adjusted annually by the Secretary of the Department of Finance and Administration when revenue conditions are met.7Justia. Arkansas Code 26-51-501 – Personal Tax Credits
Standard deduction or itemize. The Arkansas standard deduction is $2,470.8National Finance Center. Arkansas State Income Tax Withholding That’s well below the federal standard deduction, so some filers who take the federal standard still come out ahead itemizing on the Arkansas return. If your qualifying expenses — medical costs, mortgage interest, charitable contributions — total more than $2,470, itemize and keep the documentation.9Justia. Arkansas Code 26-51-430 – Standard Deduction
Forms, Deadline, and How to File
Full-year residents use Form AR1000F. Part-year residents and nonresidents use Form AR1000NR. Both are available from the Department of Finance and Administration.10Arkansas Department of Finance and Administration. Individual Income Tax Forms The deadline is April 15, matching the federal deadline.11Arkansas Department of Finance and Administration. Deadlines and Extensions
Before you start, pull together your federal return (federal adjusted gross income is the starting point for the state calculation), W-2s and 1099s, Social Security numbers for everyone on the return, and records of itemized expenses if you plan to itemize. You can file electronically through the Arkansas Taxpayer Access Point (ATAP), through commercial tax software, or by mailing a paper return. Payment options include credit card, electronic check, or a paper check sent with a payment voucher.
Extensions
If you need more time to file, Arkansas automatically honors a federal extension — your state return is then due November 15, and you check the extension box when you file. For a state-only extension, submit Form AR1055 by April 15.11Arkansas Department of Finance and Administration. Deadlines and Extensions
An extension gives you more time to file the paperwork. It does not give you more time to pay. Interest and any late-payment penalty start accruing from the original April 15 deadline on whatever balance you owe. If you expect to owe, send a payment with the extension request to limit those charges.
Estimated Tax Payments
If you expect to owe more than $1,000 after withholding and credits, you have to make quarterly estimated payments.12Arkansas Department of Finance and Administration. Estimated Tax Declaration Vouchers and Instructions for Tax Year 2026 This mostly affects the self-employed, freelancers, landlords, and anyone with significant investment income that doesn’t have state tax withheld.
Calendar-year due dates:
- First quarter: April 15
- Second quarter: June 15
- Third quarter: September 15
- Fourth quarter: January 15 of the following year
When a due date lands on a weekend or holiday, it shifts to the next business day. To avoid an underpayment penalty, your total estimated payments must equal at least 90% of what you actually owe for the current year, or 100% of the tax shown on your prior-year return.
Penalties and Interest for Late Filing or Payment
Arkansas charges separate penalties for filing late and paying late, and both can apply to the same return.
The failure-to-file penalty is 5% of the tax owed per month or partial month the return is overdue, capped at 35%. The failure-to-pay penalty is 1% per month on the unpaid balance, also capped at 35%. When both apply to the same month, the combined total still can’t exceed 35%.13FindLaw. Arkansas Code Title 26 Taxation 26-18-208
Interest on unpaid tax runs at 10% per year, fixed by statute, calculated from the original due date to the date you pay.14Justia. Arkansas Code 26-18-508 – Interest on Deficiencies and Overpayments Between the stacked penalties and 10% interest, even a modest balance left unpaid for several months gets expensive. File on time and pay what you can.
Fixing a Return You Already Filed
If you find an error after filing, submit a new Form AR1000F (full-year residents) or AR1000NR (part-year and nonresidents) with the “Amended Return” box checked on the first page. The form has dedicated lines to report payments you already made and any refund you already received, so the state can calculate the correct adjustment.