Arkansas State Tax
Arkansas Tax Rates
Arkansas state tax laws mandate that qualified entities residing in or deriving income from the state must pay a fraction of their earnings towards income taxes. State and local taxes are applied to goods and services as well. There are income tax, federal income tax, sales tax, property tax, and miscellaneous taxes levied on mixed drinks, rentals, moving, manufacturing, etc. These taxes are used to generate funds for the operation and projects of the federal, state, and the local governments.
Arkansas collects both state and federal income taxes. The following individuals are required to file income tax returns:
- Single residents whose gross income exceeds $7800
- Head of Household whose income is over $12,100
- Married couples whose joint income exceeds $15,500
- Married person (filing individual returns) who earns at least is $3,999
- Widows who support dependents and earns at least $15,500
Arkansas has six income tax brackets ranging from 1% to 7%. The Arkansas tax bracket determines the marginal tax rate to be paid by the taxpayer. Arkansas also levies federal income tax on single and married taxpayers.
Income tax returns are filed annually to determine if a person has paid the right amount of tax. The deadline for filing is on April 15th each year; except when on no-mail service days such as holidays and weekends when the deadline is moved to the next working day.
Failure to pay the right taxes is subject to penalties under the Arkansas State tax code. Tax fraud and tax evasion are deliberate avoidance of paying proper taxes. Guilty individuals and business entities shall face interests, fines and forfeiture of assets.