Summary of Tax Cuts

2021: Largest Tax Cut in Arkansas History

Governor Hutchinson signs largest tax cut in state history.

Total tax cut savings: $431,000,000

Lowers the top individual tax rate to 5.5% in January 2022, then lowers again to 5.3% in January 2023. In 2025, the top indvidual tax rate will be 4.9%.

Lower-income taxpayers will receive a $60 tax credit.  

  • With the $60 credit, the tax cut also completely eliminates taxes owed for over 100,000 low-income Arkansans.

SB1, now Act 2 of the Second Extraordinary Session of the 93rd General Assembly, also combines low and middle income tax tables.

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