Individual tax rates range from 1% to 7%, with the highest bracket coming in at a measly $34,000! There is a standard deduction of $2,000 single/$4,000 married filing joint. Rather than an exemption there is a credit amount of $23 per person. Did I really get these numbers right or is somebody at the Arkansas tax board getting real life values mixed up with the prices on the Monopoly board? Wow the cost of living must be cheap there!
Social security is exempt, as is the first $6,000 of pension payments- including IRA distributions. There are no estate taxes. Sales taxes are 6.5%, but food is taxed at 2%, and localities can add up to 5.5% additional to either base amount.
There is a corporate franchise tax that is figured based on stock issued of .3% of the outstanding capital stock or $150 minimum, $300 flat-rate for companies with no capital stock value. $150 flat rate franchise tax for LLC's. Corporate tax rates range from 1% of the first $3,000 to 6.5% of any amount over $100,000. Arkansas does not conform to the federal depreciation rules regarding bonus depreciation, so care must be taken when deciding depreciation methods with Arkansas income. Tax and business information can be found at: http://www.state.ar.us/dfa