Arkansas Business Tax Calculator

Calculate corporate income tax, franchise tax, and gross receipts tax for businesses operating in Arkansas.

Why calculating business in Arkansas is different

Arkansas has a progressive income tax and relatively high combined sales tax due to local additions.

State Income Tax
2% - 4.4%
Base Sales Tax
6.5%
State Min Wage
$11.00 / hr
Abbreviation
AR

Arkansas Business Interactive Tool

This calculator uses the latest 2026 data for Arkansas, including the minimum wage of $11.00 and the specific state income tax rates (2% - 4.4%).

Frequently Asked Questions about Arkansas Business

What is the corporate tax rate in Arkansas?

Corporate tax structures vary. In addition to potential corporate income taxes, businesses in Arkansas must also consider unemployment insurance taxes, sales tax collection (6.5%), and local business licenses.

Do LLCs pay tax in Arkansas?

LLCs are typically pass-through entities, meaning profits pass through to the owners' personal tax returns and are taxed at the personal 2% - 4.4% rate. However, Arkansas may also impose an annual LLC franchise fee.