Summary of Tax Cuts

2022: Top Individual Tax Rate at 4.9%

In the Third Extraordinary Session of the 93rd General Assembly, Governor Hutchinson signed legislation to immediately lower the individual tax rate to 4.9%.

  • Takes over $400 million from the state coffers and returns it to the pockets of hardworking Arkansans.
  • House bill 1002 and Senate bill 1 makes the income tax rate the lowest in state history.
  • The legislation accelerates tax cuts that were signed into law in December 2021. 
  • Provides additional financial relief for low- and middle-income taxpayers with a $150 nonrefundable tax credit.

Scenarios to demonstrate the tax relief at Arkansans of all income levels:

  • At a net taxable income of $20,000, the tax bill will be $226 lower this year compared to last year.
  • At a net taxable income of $50,000, the tax bill will be $482 lower this year compared to last year.
  • At a net taxable income of $100,000, the tax bill will be $939 lower this year compared to last year.

©2022 State of Arkansas. All Rights Reserved.