2019: The 5.9 Tax Plan

In 2019, the Governor signed legislation that reduces the top marginal tax rate from 6.9% to 5.9%.

• Phase one went into effect on January 1, 2020.
• It will be phased in over two years.
• This tax cut is the third phase of Governor Hutchinson’s three-part plan to reform Arkansas’s tax code.
• All Arkansans have received a tax cut since legislation was first signed in 2015.

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2017: $50 Million Cut
And $13 Million Retired Military Tax Cut

In 2017, Governor Hutchinson signed the second largest cut to the income tax rate in Arkansas history—$50M. This cut targeted low income Arkansans.  

• Removed approximately 120,000 taxpayers from the rolls.

The Governor also signed legislation eliminating the income tax on military retirement pay, known as the Retired Military Tax Cut.

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2015: $102 Million Cut
(Largest in Arkansas History)

In 2015, Governor Hutchinson fulfilled his top campaign promise by signing the Middle Class Income Tax Cut of $102M, the largest cut to the income tax rate in Arkansas history.

• This tax cut returned as much as $540 annually to nearly 500,000 taxpayers.

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