Retirement Tax Breakdown for Arkansas Residents

Complete Arkansas retirement tax guide: income tax rates, capital gains treatment, Social Security and pension taxation, property taxes, and sales tax. Overall retiree-friendliness rank: #28 of 51.

State Income Tax
4.4% top rate

3 bracket(s)

Capital Gains Rate
4.4%

Treated as ordinary income

Property Tax Rate
0.62%

#35 (Above Avg)

Sales Tax Rate
9.5%

State 6.5% + local avg 9.5%

Less Tax-Friendly State

Arkansas exempts Social Security and offers a $6,000 retirement income exemption. However, high sales taxes and pension taxation reduce its retiree-friendliness.

Retirement Income Taxation

Social Security

Not taxed

Pension Income

Taxable

Retirement Exemption

$6,000

Tax Comparison Summary

State income tax4.4% top
Capital gains4.4%
Property tax0.62% effective
Sales tax9.5% combined
Overall retiree rank#28 of 51

Arkansas Income Tax Brackets

State Tax Bracket Schedule

RateFromTo
2%$0$5,100
4%$5,100$10,300
4.4%$10,300No limit

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