Arkansas HB1001 reduces income tax rates for individuals, trusts, estates, and corporations.

Arkansas HB1001 reduces income tax rates for individuals, trusts, estates, and corporations. For individuals, trusts, and estates, the bill sets a tiered tax rate: 1% on the first $3,000 of net income, 2% on the next $3,000, 3% on the next $5,000, 3.4% on the next $10,400, and 4.1% on income exceeding $11,000. For corporations, the bill sets a tiered tax rate: 1% on the first $3,000 of net income, 2% on the next $3,000, and 3.7% on income exceeding $6,000. The tax rates apply to tax years beginning on or after January 1, 2026.

Arkansas HB1001 reduces income tax rates for individuals, trusts, estates, and corporations.

Arkansas HB1001 reduces income tax rates for individuals, trusts, estates, and corporations. For individuals, trusts, and estates, the bill sets a tiered tax rate: 1% on the first $3,000 of net income, 2% on the next $3,000, 3% on the next $5,000, 3.4% on the next $10,400, and 4.1% on income exceeding $11,000. For corporations, the bill sets a tiered tax rate: 1% on the first $3,000 of net income, 2% on the next $3,000, and 3.7% on income exceeding $6,000. The tax rates apply to tax years beginning on or after January 1, 2026.