Arkansas individual income tax rate drops in January 2024

 “On January first, Arkansas’ top individual income tax rate drops from four-point-seven percent to four-point-four percent and its top corporate income tax rate will fall from five-point-one percent to four-point-eight percent. With an effective date of Monday, January first for the reduction of the state’s top individual income tax rate to four-point-four percent, payroll withholding tables will be updated in January. As employers implement the withholding changes, taxpayers will see the impact in their paychecks. The benefit of the lower rate will continue in 2025 when taxpayers file returns for the 2024 tax year. 

    Supporters of the income tax cuts say they will put more money in Arkansans’ pocketbooks and make the state’s income tax rates more competitive with surrounding states to help the state recruit and retain private industry and jobs. Governor Sarah Sanders Huckabee said in an interview with KMTB and KNAS that she is working to responsibly phase out Arkansas’ personal income tax entirely:”

“Governor Sanders and the Legislature could be cutting income taxes again in the fiscal session that begins April 10th, or during a special session either before or after the fiscal session. In the fiscal session, a two-thirds vote in the House and Senate is required to introduce a non-appropriation bill.”