| Arkansas Income and Sales Taxes | ||||||||||
| Arkansas State Individual Income Taxes | ||||||||||
| The tax rate on adjusted gross income is 7 percent. Those choosing not to itemize deductions . | ||||||||||
| are allowed a $2,000 standard deduction, $4,000 for married couples. A tax credit of $23 per | ||||||||||
| dependent is allowed. There are also provisions for those with low incomes | ||||||||||
| State Sales and Use Tax | ||||||||||
| The state rate is 6% | ||||||||||
| The gross receipts derived from the sale of food and food ingredients are taxed at a state sales | ||||||||||
| rate of three percent (3%). Prepared foods remain at 6%. | ||||||||||
| Local Sales Tax | ||||||||||
| Most counties and municipalities in Arkansas have initiated a local sales tax. | ||||||||||
| For Faulkner County | ||||||||||
| Faulkner County | 0.50 | % | ||||||||
| Conway | 1.75 | |||||||||
| Greenbrier | 2.00 | |||||||||
| Vilonia | 2.00 | |||||||||
| There is a limit on the local sales tax to the first $2500 on a single purchase such as automobile | ||||||||||
| purchases. There is not a provision for a lower local tax rate on food of food ingredients. | ||||||||||
| Advertising and Promotion Tax | ||||||||||
| Conway has an additional 2% tax on hotel rooms and prepared food sales. | ||||||||||
| Summary of local and state sales taxes | ||||||||||
| Within Faulkner county and outside of municipalities with a local tax 6.5% | ||||||||||
| City of Conway 8.25% and 10.25% on prepared foods and hotel rooms. | ||||||||||
| City of Greenbrier 8.50% | ||||||||||
| City of Vilonia 8.5% | ||||||||||