Arkansas tax burden — broken down.
Arkansas’s combined tax burden (income + property + sales) lands at 11.02% on our composite — ranking #25 of 51 jurisdictions. The top marginal individual income tax rate is 3.90%.
Arkansas burden, broken into 3 components
| Component | Arkansas rate | National median |
|---|---|---|
| Top marginal income | 3.90% | ~5.30% |
| Effective property | 0.62% | ~1.07% |
| State sales tax | 6.50% | ~5.50% |
| Combined composite | 11.02% | ~11.87% |
National medians from CalcFi’s 51-state composite. Top marginal is the headline single-filer rate, NOT the effective rate most households actually pay.
Retirement + Social Security in Arkansas
Arkansas does NOT tax most retirement income (pensions, IRA / 401(k) distributions). Social Security benefits are NOT taxed by Arkansas. Federal taxation of these income sources is unchanged regardless of state.
How Arkansas compares
Of all 51 US jurisdictions ranked by combined burden composite, Arkansas sits at #25. That places Arkansas in the middle of the pack — burden is moderate without being a particular outlier in either direction. For the live cross-state heat map, see the interactive tax burden map.
Arkansas metros — local tax overlay
State rates are uniform across Arkansas— but local income, property, and sales taxes vary. Click any metro to run the full income tax calculator pre-populated with that city’s local layer.
- Little Rockproperty 0.63% · pop 0.8Mmedian $56,600 →
- Fayettevilleproperty 0.60% · pop 0.6Mmedian $55,800 →
More Arkansas metros coming as we expand city coverage.
Arkansas tax — common questions
What is the Arkansas top marginal income tax rate in 2025?
Arkansas's top marginal individual income tax rate is 3.90% on the highest bracket.
What is the Arkansas effective property tax rate?
Arkansas's statewide effective property tax rate is 0.62% of home value (annual). On a $400,000 home that's roughly $2,480/yr. Local variation can be ±0.5pp.
Does Arkansas tax retirement income or Social Security?
Arkansas does NOT tax most retirement income, and does NOT tax Social Security benefits.
Are there any Arkansas-specific tax quirks I should know about?
Arkansas grocery sales tax sits at 0.125% (state) — among the lowest grocery rates of states that tax groceries; AR is gradually eliminating the grocery tax via legislation.
Reviewed by CalcFi Editorial · Source: Tax Foundation State Individual Income Tax Rates (Jan 2025). Last verified 2026-04-19. Methodology at /about/editorial.