Quick Look: The 2021 Arkansas Income Tax Cut
By Wayne Miller
Arkansas lawmakers recently passed legislation reducing state income taxes for individuals and corporations.
Starting this year and continuing through 2025, individual income tax rates will decrease as will corporate income tax rates if certain economic conditions are met. The legislation from the December special session also:
- changed some income tax brackets,
- combined two tax tables for low and middle income earners,
- increased the standard income tax deduction by adjusting for inflation, and
- provided a tax credit for some individuals.