Tax Percentage
State of Arkansas 6.5%
City of Jonesboro 1.0%
Craighead County 1.0%

$48.05 per Assessed Value (Using Nettleton School District) per Thousand.

County General .0040
County Road .0021
Library .0020
Policeman’s Pension .0005
Fireman’s Pension .0005
Nettleton School Millage .03895
State Corporate Income Tax

Taxable income is apportioned according to a three-factor formula (property, payrolls and sales attributed to Arkansas) with a double-weighted sales factor. 

Taxable Income Tax Rate
First $3,000 1%
Next $3,000 2%
Next $5,000 3%
Next $14,000 5%
Next $75,000 6%
Over $100,000 6.5%

If a business activity is derived from activity inside and outside the state of Arkansas, it is apportioned for taxation according to the percentage of property and payrolls utilized in the state and sales attributable to Arkansas pursuant to the multi-state compact. 

A corporation doing business in Arkansas and sustaining a net operating loss may carry forward the loss to the next succeeding taxable year and annually thereafter for a total period of five years succeeding the year of such loss and deduct it from Arkansas taxable income. 

Qualified biofuels manufacturers investing at least $20 million and creating at least 100 new jobs may receive income tax exemptions for up to 20 years. Qualified windmill blade or component manufacturers classified under NAICS Code 333611 may receive income tax exemptions for up to 25 years based upon the investment, job created, tier status and employee wages.

Corporate Franchise Tax

The chart below lists the franchise tax rates for various entities under Arkansas Code 26-54-104.

Franchise Tax Type Current Rate
Corporation/Bank with Stock 0.3% of the outstanding capital stock; $150 minimum
Corporation/Bank without Stock $300
Limited Liability Company $150
Insurance Corporation Legal Reserve Mutual, Assets Less Than $100 million $300
Insurance Corporation Legal Reserve Mutual, Assets Greater Than $100 million $400
Insurance Company Outstanding Capital Stock Less Than $500,000 $300
Insurance Company Outstanding Capital Stock Greater Than $500,000 $400
Mortgage Loan Corporation 0.3% of the outstanding capital stock; $300 minimum
Mutual Assessment Insurance Corporation $300
Unemployment Insurance Tax (New Business)

A business with no previous employment record in Arkansas is taxed at 3.7% on the first $12,000 of each employee’s earnings until an employment record is established, usually within three years.  

Taxable wage base = $12,000
Rate = 3.7%

Unemployment Insurance Tax (Existing Arkansas Businesses)

Each business’ employment record is determined primarily by its taxable payroll and history of employee voluntary termination. The tax is determined by past experience and the amount of the reserve-ratio. The reserve-ratio is the excess of contributions paid over benefits charged as related to payroll. The higher the reserve-ratio, the lower the tax rate.

Rate = 0.9% - 12.8%