Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 5 - STATE TAXES (§§ 26-50-101 — 26-65-108) › Chapter 51 - INCOME TAXES (§§ 26-51-101 — 26-51-2804) › Subchapter 2 - IMPOSITION OF TAX (§§ 26-51-201 — 26-51-207) › Section 26-51-201 - Individuals, trusts, and estates - Definition

(a)
A tax is imposed upon the entire income of every resident, individual, trust, or estate. The tax shall be levied, collected, and paid annually upon the entire net income as defined and computed in this chapter at the following rates, giving effect to the tax credits provided hereafter, in the manner set forth:
(1)
(A)
Every resident, individual, trust, or estate having net income less than or equal to eighty-four thousand five hundred dollars ($84,500) shall determine the amount of income tax due under this subsection in accordance with the table set forth below:
From
Less Than or Equal To
Rate
$0
$4,999
0%
$5,000
$9,999
2%
$10,000
$14,299
3%
$14,300
$23,599
3.4%
$23,600
$84,500
4.9%
(B)
Every resident, individual, trust, or estate having net income greater than eighty-four thousand five hundred dollars ($84,500) shall determine the amount of income tax due under this subsection in accordance with the table set forth below:
From
Less Than or Equal To
Rate
$0
$4,300
2%
$4,301
$8,500
4%
$8,501 and above
4.9%
(C)
Every resident, individual, trust, or estate having net income greater than or equal to eighty-four thousand five hundred one dollars ($84,501) but not greater than eighty-nine thousand one hundred dollars ($89,100) shall reduce the amount of income tax due as determined under subdivision (a)(1)(B) of this section by deducting a bracket adjustment amount in accordance with the table set forth below:
From
Less Than or Equal To
Bracket
Adjustment
Amount
$84,501
$84,600
$460
$84,601
$84,700
$450
$84,701
$84,800
$440
$84,801
$84,900
$430
$84,901
$85,000
$420
$85,001
$85,100
$410
$85,101
$85,200
$400
$85,201
$85,300
$390
$85,301
$85,400
$380
$85,401
$85,500
$370
$85,501
$85,600
$360
$85,601
$85,700
$350
$85,701
$85,800
$340
$85,801
$85,900
$330
$85,901
$86,000
$320
$86,001
$86,100
$310
$86,101
$86,200
$300
$86,201
$86,300
$290
$86,301
$86,400
$280
$86,401
$86,500
$270
$86,501
$86,600
$260
$86,601
$86,700
$250
$86,701
$86,800
$240
$86,801
$86,900
$230
$86,901
$87,000
$220
$87,001
$87,100
$210
$87,101
$87,200
$200
$87,201
$87,300
$190
$87,301
$87,400
$180
$87,401
$87,500
$170
$87,501
$87,600
$160
$87,601
$87,700
$150
$87,701
$87,800
$140
$87,801
$87,900
$130
$87,901
$88,000
$120
$88,001
$88,100
$110
$88,101
$88,200
$100
$88,201
$88,300
$90
$88,301
$88,400
$80
$88,401
$88,500
$70
$88,501
$88,600
$60
$88,601
$88,700
$50
$88,701
$88,800
$40
$88,801
$88,900
$30
$88,901
$89,000
$20
$89,001
$89,100
$10
$89,101 and up
$0
(2)
For tax years beginning on or after January 1, 2023:
(A)
Every resident, individual, trust, or estate having net income less than or equal to eighty-seven thousand dollars ($87,000) shall determine the amount of income tax due under this subsection in accordance with the table set forth below:
From
Less Than or Equal To
Rate
$0
$5,099
0%
$5,100
$10,299
2%
$10,300
$14,699
3%
$14,700
$24,299
3.4%
$24,300
$87,000
4.7%
(B)
Every resident, individual, trust, or estate having net income greater than eighty-seven thousand dollars ($87,000) shall determine the amount of income tax due under this subsection in accordance with the table set forth below:
From
Less Than or Equal To
Rate
$0
$4,400
2%
$4,401
$8,800
4%
$8,801 and above
4.7%
(C)
Every resident, individual, trust, or estate having net income greater than or equal to eighty-seven thousand one dollars ($87,001) but not greater than ninety-one thousand three hundred dollars ($91,300) shall reduce the amount of income tax due as determined under subdivision (a)(2)(B) of this section by deducting a bracket adjustment amount in accordance with the table set forth below:
From
Less Than or Equal To
Bracket Adjustment Amount
$87,001
$87,100
$430
$87,101
$87,200
$420
$87,201
$87,300
$410
$87,301
$87,400
$400
$87,401
$87,500
$390
$87,501
$87,600
$380
$87,601
$87,700
$370
$87,701
$87,800
$360
$87,801
$87,900
$350
$87,901
$88,000
$340
$88,001
$88,100
$330
$88,101
$88,200
$320
$88,201
$88,300
$310
$88,301
$88,400
$300
$88,401
$88,500
$290
$88,501
$88,600
$280
$88,601
$88,700
$270
$88,701
$88,800
$260
$88,801
$88,900
$250
$88,901
$89,000
$240
$89,001
$89,100
$230
$89,101
$89,200
$220
$89,201
$89,300
$210
$89,301
$89,400
$200
$89,401
$89,500
$190
$89,501
$89,600
$180
$89,601
$89,700
$170
$89,701
$89,800
$160
$89,801
$89,900
$150
$89,901
$90,000
$140
$90,001
$90,100
$130
$90,101
$90,200
$120
$90,201
$90,300
$110
$90,301
$90,400
$100
$90,401
$90,500
$90
$90,501
$90,600
$80
$90,601
$90,700
$70
$90,701
$90,800
$60
$90,801
$90,900
$50
$90,901
$91,000
$40
$91,001
$91,100
$30
$91,101
$91,200
$20
$91,201
$91,300
$10
$91,301 and up
$0
(3)
For tax years beginning on or after January 1, 2024:
(A)
Every resident, individual, trust, or estate having net income less than or equal to eighty-nine thousand six hundred dollars ($89,600) shall determine the amount of income tax due under this subsection in accordance with the table set forth below:
From
Less Than or Equal To
Rate
$0
$5,299
0%
$5,300
$10,599
2%
$10,600
$15,099
3%
$15,100
$24,999
3.4%
$25,000
$89,600
3.9%
(B)
Every resident, individual, trust, or estate having net income greater than eighty-nine thousand six hundred dollars ($89,600) shall determine the amount of income tax due under this subsection in accordance with the table set forth below:
From
Less Than or Equal To
Rate
$0
$4,500
2%
$4,501 and above
3.9%
(C)
Every resident, individual, trust, or estate having net income greater than or equal to eighty-nine thousand six hundred one dollars ($89,601) but not greater than ninety-two thousand seven hundred dollars ($92,700) shall reduce the amount of income tax due as determined under subdivision (a)(3)(B) of this section by deducting a bracket adjustment amount in accordance with the table set forth below:
From
Less Than or Equal To
Bracket Adjustment Amount
$89,601
$89,700
$310
$89,701
$89,800
$300
$89,801
$89,900
$290
$89,901
$90,000
$280
$90,001
$90,100
$270
$90,101
$90,200
$260
$90,201
$90,300
$250
$90,301
$90,400
$240
$90,401
$90,500
$230
$90,501
$90,600
$220
$90,601
$90,700
$210
$90,701
$90,800
$200
$90,801
$90,900
$190
$90,901
$91,000
$180
$91,001
$91,100
$170
$91,101
$91,200
$160
$91,201
$91,300
$150
$91,301
$91,400
$140
$91,401
$91,500
$130
$91,501
$91,600
$120
$91,601
$91,700
$110
$91,701
$91,800
$100
$91,801
$91,900
$90
$91,901
$92,000
$80
$92,001
$92,100
$70
$92,101
$92,200
$60
$92,201
$92,300
$50
$92,301
$92,400
$40
$92,401
$92,500
$30
$92,501
$92,600
$20
$92,601
$92,700
$10
$92,701 and up
$0
(4)
The tables set forth in subdivisions (a)(1)-(3) of this section shall be adjusted annually in accordance with the method set forth in subsection (d) of this section.
(b)
However, no state income tax shall be due this state from a trust or estate created by a nonresident donor, trustor, or settlor, or by a nonresident testator even though administered by a resident trustee or personal representative except on income derived from:
(1)
Lands situated in this state, including gains from any sale thereof;
(2)
Any interest in lands situated in this state, including, without limitation, chattels real, including gains from any sale thereof;
(3)
Tangible personal property located in Arkansas, including gains from any sale thereof; and
(4)
Unincorporated businesses domiciled in Arkansas.
(c)
No income tax shall be due the State of Arkansas from a nonresident beneficiary on income received from a trust being administered by a resident trustee except on income derived by the trust from:
(1)
Lands situated in this state, including gains from any sale thereof;
(2)
Any interest in lands situated in this state, including, without limitation, chattels real, including gains from any sale thereof;
(3)
Tangible personal property located in Arkansas, including gains from any sale thereof; and
(4)
Unincorporated businesses domiciled in Arkansas.
(d)
(1)
The Secretary of the Department of Finance and Administration shall prescribe annually tables that shall apply in lieu of the tables contained in subsection (a) of this section with respect to each succeeding taxable year. The secretary shall increase the minimum and maximum dollar amounts for each rate bracket, rounding to the nearest one hundred dollars ($100), for which a tax is imposed under the table by the cost-of-living adjustment for each calendar year and by not changing the rate applicable to any rate bracket as adjusted.
(2)
For purposes of subdivision (d)(1) of this section, the cost-of-living adjustment for a calendar year is the percentage, if any, by which the CPI for the current calendar year exceeds the CPI for the preceding calendar year, not to exceed three percent (3%). The CPI for any calendar year is the average of the Consumer Price Index as of the close of the twelve-month period ending on August 31 of such calendar year. "Consumer Price Index" means the last Consumer Price Index for All Urban Consumers published by the United States Department of Labor.
(3)
The new tables, as adjusted annually, shall be used by the secretary in preparing the income tax withholding tables pursuant to §
26-51-907
.
(e)
(1)
Title
26 U.S.C. §§ 671
-
679
, as in effect on January 1, 2019, are adopted for purposes of determining whether the grantor or another person shall be treated as the owner of a portion of a trust for Arkansas income tax purposes.
(2)
A grantor or other person described in
26 U.S.C. §§ 671
-
679
, as in effect on January 1, 2019, is subject to the filing and reporting requirements of §
26-51-806
.
Amended by Act 2024EX2, No. 4,§ 1, eff. 6/19/2024.
Amended by Act 2024EX2, No. 1,§ 1, eff. 6/19/2024.
Amended by Act 2023EX1, No. 6,§ 1, eff. 9/14/2023.
Amended by Act 2023, No. 532,§ 2, eff. 8/1/2023.
Amended by Act 2023, No. 532,§ 1, eff. 8/1/2023.
Amended by Act 2022EX3, No. 2,§ 1, eff. for tax years beginning on or after January 1, 2022.
Amended by Act 2022EX3, No. 1,§ 1, eff. for tax years beginning on or after January 1, 2022.
Amended by Act 2021EX2, No. 2,§ 5, eff. for tax years beginning on or after January 1, 2022.
Amended by Act 2021EX2, No. 1,§ 5, eff. for tax years beginning on or after January 1, 2022.
Amended by Act 2019, No. 1027,§ 2, eff. for tax years beginning on or after 1/1/2020.
Amended by Act 2019, No. 182,§ 3, eff. for tax years beginning on or after 1/1/2020.
Amended by Act 2019, No. 910,§ 3706, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 3705, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 3704, eff. 7/1/2019.
Amended by Act 2019, No. 182,§ 4, eff. 2/19/2019.
Amended by Act 2017, No. 79,§ 2, eff. for tax years beginning on and after 1/1/2019.
Amended by Act 2015, No. 709,§ 1, eff. for tax years beginning on and after January 1, 2015.
Amended by Act 2015, No. 22,§ 2, eff. 2/6/2015.
Amended by Act 2013, No. 1459,§ 2, eff. 8/16/2013.
Amended by Act 2013, No. 1459,§ 1, eff. 8/16/2013.
Acts 1929, No. 118, Art. 2, § 3; Pope's Dig., § 14026; Acts 1957, No. 20, § 1; 1961, No. 34, § 1; 1967, No. 46, § 1; 1971, No. 221, § 1; 1973, No. 215, §§ 1, 2; A.S.A. 1947, § 84-2003; Acts 1997, No. 328, § 5.