Lower taxes in 2023 for Arkansans

Arkansans will see lower taxes in 2023.

Starting January 1^st, a corporate tax rate reduction will go into effect, along with a decrease in state income taxes.

The rate change was passed in 2021 and it will show up on next year’s tax returns.

This year, the state income tax decreased to 4.9 percent. It’s expected that after the 2023 tax returns Arkansans will save more than $295 million dollars.

Scott Hardin is a spokesperson for the Department of Finance and Administration said this is the lowest income tax rate Arkansas has had since the state implemented a state income tax.