Clinton, AR tax structure / Previous Page

State Sales Taxes: 6.0% (prescription drugs exempt).
Food taxed at 3%,
natural gas and electricity taxed at 4.5%, city and county sales taxes could add another 6.5%.
Gasoline Tax: 21.87 cents/gallon
Diesel Fuel Tax 22.8 cents/gallon
Cigarette Tax: $1.15 cents/pack of 20

Personal Income Taxes

Tax Rate Range:  Low – 1.0%; High – 7.0% *
Income Brackets:  Lowest – $3,800; Highest – $31,700
Number of Brackets: 6
Tax Credits: Single – $23; Married – $46; Dependents – $23
Additional deduction if 65 years of age or older – $23
Standard Deduction: Single – $2,000; Married filing jointly – $4,000
Medical/Dental Deduction: Same as Federal taxes
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security is exempt, as are VA benefits, Workers’ Compensation, Tier 1 and Tier 2 Railroad Retirement benefits, and unemployment compensation.  Up to $6,000 in military, civil service, state/local government, and private pensions are exempt.  The exemption refers to income from public or private retirement systems, plans or programs.  IRA distributions can be included as part of the $6,000 exemption if the taxpayer is 59-1/2 or older.  Out-of-state government pensions also qualify for the exemption.
Retired Military Pay: Up to $6,000 of federal retirement pay and/or survivor benefits excluded.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes

Arkansas property taxes are levied by counties, municipalities, and school districts.  All households are eligible for a refund of up to $300 regardless of income or age.  Political subdivisions collect taxes on real property (house and land) and personal property (motor vehicles, boats and motors, motorcycles and all-terrain vehicles).  Assessment is based on 20 percent of the true market value.  The taxable assessed value of homesteads will not increase more than 5% above the previous taxable assessed value except when new additions or substantial improvements are made to the property.  However, the taxable value of the homestead will continue to increase each year until it equals 20% of market value.  The taxable assessed value of homesteads of residents aged 65 or older, or those who are disabled are capped at the previous year value unless improvements are made or the property is sold.  For more information about real property taxes, click here.

Inheritance and Estate Taxes

There is no inheritance tax.  In 2003 the estate tax was repealed for those deceased after January 1, 2005.

For further information, visit the Arkansas Department of Finance and Administration site or call 501-682-7225.  For general tax information, click here.  For a booklet on moving to Arkansas, click here.