With Arkansas being one of the few states to pass the balanced-budget amendment, this makes it a smart place to start and grow a business. The State’s low cost business environment has helped it to secure jobs and population growth.
Corporate Income TaxTaxable Income Tax Rate
First $3,000 1% Next $3,000 2% Next $5,000 3% Next $14,000 5% Next $75,000 6% Over $100,000 6.5% Personal Income Tax Rate (Effective January 1, 2019)
*for incomes over $75,000, the tax rate for income from $21,000 to $35,099 is 6% and the tax rate for income greater than $35,100 is 6.9%
Incomes between $75,000 and $80,000 shall reduce the amount of income tax due by deducting a bracket adjustment as set forth below:
$75,001 - $76,000 $440
$76,001 - $77,000 $340 $77,001 - $78,000 $240 $78,001 - $79,000 $140 $79,001 - $80,000 $40 $80,001 and above $0 |
PropertyCutter Morning Star……….....0.0525
Fountain Lake…………………....0.0384 Hot Springs…………………….....0.0457 Jessieville…........................0.0423 Lake Hamilton………………......0.0442 Lakeside………………………...…..0.0453 Mountain Pine………………......0.0435 * No state property tax, local tax based on school districts Sales and UseCity of Hot Springs……….……1.5%
Garland County……………………1.5% State of Arkansas……..……....6.5% Total……………………....…….…9.5% Hotel Occupancy 5.0% Unemployment Insurance TaxNew Businesses
Taxable wage base = $10,000 Rate = 3.2% A business with no previous employment record in Arkansas is taxed at 3.2% on the first $10,000 of each employee’s earnings until an employment record is established, usually within three years. Existing Arkansas Businesses Rate = 0.1% - 14.0% Each business’ employment record is determined primarily by its taxable payroll and history of employee voluntary termination. The tax is determined by past experience and the amount of the reserve ratio. The reserve ratio is the excess of contributions paid over benefits charged as related to payroll. The higher the reserve-ratio, the lower the tax rate. |
Corporate Franchise Tax
Franchise Tax Type Current Rate
Corporation/Bank with Stock 0.3% of the outstanding capital stock; $150 minimum
Corporation/Bank without Stock $300
Limited Liability Company $150
Insurance Corporation Legal Reserve Mutual, Assets Less Than $100 million $300
Insurance Corporation Legal Reserve Mutual, Assets Greater Than $100 million $400
Insurance Company Outstanding Capital Stock Less Than $500,000 $300
Insurance Company Outstanding Capital Stock Greater Than $500,000 $400
Mortgage Loan Corporation 0.3% of the outstanding capital stock; $300 minimum
Mutual Assessment Insurance Corporation $300
Corporation/Bank with Stock 0.3% of the outstanding capital stock; $150 minimum
Corporation/Bank without Stock $300
Limited Liability Company $150
Insurance Corporation Legal Reserve Mutual, Assets Less Than $100 million $300
Insurance Corporation Legal Reserve Mutual, Assets Greater Than $100 million $400
Insurance Company Outstanding Capital Stock Less Than $500,000 $300
Insurance Company Outstanding Capital Stock Greater Than $500,000 $400
Mortgage Loan Corporation 0.3% of the outstanding capital stock; $300 minimum
Mutual Assessment Insurance Corporation $300