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State corporate income tax rate StateTax RateAlaska0% ? 9.4%Arizona4.90%Arkansas1% ? 5.9%California8.84%41 more rows ?
Arkansas also has a 1.0 to 5.30 percent corporate income tax rate. Arkansas has a 6.50 percent state sales tax rate, a max local sales tax rate of 6.125 percent, and an average combined state and local sales tax rate of 9.46 percent. Arkansas's tax system ranks 38th overall on our 2024 State Business Tax Climate Index.
Arkansas standard deduction for tax year 2021 is $4,400 for married filing jointly and $2,200 for all other filers.
Notable changes for tax year 2023 include: Arkansas saw its top rate of 5.9 percent drop to 5.3 percent on January 1, due to the enactment of H.B. 1002 in August of 2022 which accelerated previously planned individual and corporate income tax rate reductions.
For corporations, the effective tax rate can be found by dividing the tax expense by the earnings before tax of the company. The effective tax rate for individuals is found by dividing their tax expense by their taxable income.
No bonus depreciation is allowed for Arkansas income tax purposes.
Notable State Corporate Income Tax Changes in 2023 Notable changes for tax year 2023 include: Arkansas saw its top rate of 5.9 percent drop to 5.3 percent on January 1, due to the enactment of H.B. 1002 in August of 2022 which accelerated previously planned individual and corporate income tax rate reductions.
Statute of Limitations on Arkansas Back Taxes The state of Arkansas has a 10-year statute of limitations on back taxes. This means that the state can pursue collection activities including property liens for up to 10 years after the taxes have been assessed.