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Arkansas Tax Refund Calculator
Use this free calculator to estimate your Arkansas state tax refund for the 2025-2026 tax year. Arkansas uses a progressive income tax system with rates from 2-4.7%. Enter your income, filing status, and deductions below to see your estimated refund or balance due.
This calculator uses official Arkansas Department of Revenue tax tables and standard deduction amounts for the 2026 tax year. Results are estimates and should be verified with a tax professional.
Arkansas State Tax Calculator 2025-2026
Arkansas Tax System Details
Arkansas operates a progressive income tax system with 4 tax brackets. Tax rates range from 2-4.7%, applying to all taxable income earned by Arkansas residents. The state standard deduction for 2026 is $2,340 for single filers and $4,680 for married filing jointly.
How Arkansas Compares to Other States
Arkansas's top rate of 4.7% is competitive in the region. Tennessee has no income tax, Missouri's top rate is 4.8%, Oklahoma's is 4.75%, and Texas has no income tax. Mississippi is phasing to a 4.7% flat rate. Arkansas fully taxes capital gains as ordinary income, but offers a deduction for Social Security and a retirement income exemption for those 59.5 and older.
The effective tax rate for most Arkansas residents falls between 3% and 4.5% of total income. The top bracket of 4.7% kicks in at just $8,400 of taxable income, so most earners reach it quickly.
Deductions and Credits Available in Arkansas
Arkansas offers a deduction for contributions to its 529 college savings plan, a property tax credit for low-income homeowners, and an adoption expense deduction. Military retirees under 65 can exclude up to $6,000 of retirement pay. Social Security benefits are fully exempt, and the state provides an earned income tax credit worth 3% of the federal EITC.
For federal tax purposes, Arkansas residents can deduct their state income tax payments on their federal return if they itemize deductions, subject to the $40,000 SALT cap.
Sales Tax in Arkansas
Arkansas's state sales tax rate is 6.5% on most goods. Groceries are taxed at a reduced rate of 0.125%, and prescription drugs are exempt. With local add-ons, the average combined rate is approximately 9.5%, among the highest in the US. Property tax rates average about 0.56% of assessed value.
Arkansas Income Tax Overview
The standard deduction is subtracted from your gross income to determine your taxable income before the brackets are applied. Practical tip: the effective rate you actually pay is usually far lower than the top marginal rate. For typical middle-income earners, the effective state tax rate lands well below the headline rate.
The standard deduction directly reduces your taxable income before any tax brackets are applied. The state sales tax rate is 6.5% (avg combined 9.5%), which applies to most goods and some services depending on local laws. Property taxes in Arkansas average approximately 0.56% of home value. For context, the national average property tax rate is roughly 1.1%. Residents should check their city and county rates, as local add-ons can significantly increase the combined sales tax rate above the state base rate.
Compared to neighboring states — Tennessee (none), Missouri (4.8%), Oklahoma (4.75%) — Arkansas offers a distinct balance of rates, deductions, and available credits that can significantly impact your total tax burden. For retirement income: SS exempt, $6,000 retirement exemption 59.5+. Arkansas taxes groceries at just 0.125%. Arkansas offers various state-specific deductions and credits that can reduce tax liability. The annual filing deadline for state income tax returns is April 15, matching the federal deadline. Taxpayers who cannot file by the deadline can request an automatic six-month extension, though any tax owed must still be paid by April 15 to avoid interest and penalty charges. Self-employed individuals, recent movers, and retirees with complex income sources should consult a qualified tax professional for personalized guidance.
Frequently Asked Questions About Arkansas Taxes
What is the Arkansas state income tax rate structure?
Arkansas uses 2-4.7% progressive (4 brackets) system. This rate structure determines how much state tax you owe based on your taxable income after subtracting the standard deduction of $2,340 single / $4,680 married. Understanding where your income falls within this structure is the first step in estimating your state tax liability. Taxpayers should verify current year rates with the state department of revenue, as legislative changes can affect brackets and rates from year to year.
Does Arkansas tax Social Security and retirement income?
SS exempt, $6,000 retirement exemption 59.5+. Social Security benefits are generally treated favorably across most states, and Arkansas follows this approach. However, federal taxation of Social Security may still apply based on your combined income level. Retirees should also consider how Arkansas handles pension income, 401(k) withdrawals, and IRA distributions when planning their retirement budget, as state-level treatment varies significantly across the country.
What are the sales and property tax rates in
The Arkansas state sales tax rate is 6.5% (avg combined 9.5%). Combined state and local rates can vary by city and county. Property taxes average approximately 0.56% of home value. Arkansas taxes groceries at just 0.125%. Taxpayers should consider these consumption-based and property-based taxes when evaluating their overall tax burden, as they can significantly affect the true cost of living in Arkansas compared to other states with different tax structures.