Alabama vs Arkansas Taxes: Income, Property & Sales

Does Alabama or Arkansas have lower taxes? We answer that in a variety of ways below:

Alabama vs Arkansas Income Tax Comparison

	Alabama	Arkansas
Income Tax Rates & Thresholds	2.00%: $0-$500 4.00%: $501-$3000 5.00%: $3,001+	2.00%: $0-$4,300 4.00%: $4,300-$8,500 4.90%: $8,501+
Median Income	$59,910	$53,980
Income Tax Paid On Median Household Income	$8,703	$7,352
Income After Tax Based on Median Household Income	$51,207	$46,628

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Alabama vs Arkansas Property Tax Comparison

	Alabama	Arkansas
Average Property Tax Rate	0.37%	0.53%
Average House Price By State	$220,419	$199,284
Average Property Tax Owed Per Year	$816	$1,056
Income After Income Taxes & Property Taxes Based On Median State Household Income	$50,391	$45,572

Alabama vs Arkansas Sales Tax Comparison

	Alabama	Arkansas
Average State Sales Tax	4.00%	6.50%
Average Local Sales Tax Across the State	5.24%	2.97%
Average Combined Sales Tax Rate	9.24%	9.47%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,262	$3,942
Maximum Disposable Income Based on Median Household Income	$46,129	$41,629

After Tax Comparison Earning $40,000 Per Year Filing As Single

	Alabama	Arkansas
Income Tax Owed	$4,800	$4,906
After Tax Income	$35,200	$35,094
Income After Income & Property Tax	$34,384	$34,038
Maximum Disposable Income After Income, Property & Sales Taxes	$31,476	$31,093

After Tax Comparison Earning $60,000 Per Year Filing As Single

	Alabama	Arkansas
Income Tax Owed	$8,728	$8,933
After Tax Income	$51,272	$51,067
Income After Income & Property Tax	$50,456	$50,011
Maximum Disposable Income After Income, Property & Sales Taxes	$46,189	$45,684

After Tax Comparison Earning $80,000 Per Year Filing As Single

	Alabama	Arkansas
Income Tax Owed	$14,128	$14,433
After Tax Income	$65,872	$65,567
Income After Income & Property Tax	$65,056	$64,511
Maximum Disposable Income After Income, Property & Sales Taxes	$59,554	$58,930

After Tax Comparison Earning $100,000 Per Year Filing As Single

	Alabama	Arkansas
Income Tax Owed	$19,528	$19,933
After Tax Income	$80,472	$80,067
Income After Income & Property Tax	$79,656	$79,011
Maximum Disposable Income After Income, Property & Sales Taxes	$72,919	$72,176

After Tax Comparison Earning $100,000 Per Year Filing As Married Filing Jointly

	Alabama	Arkansas
Income Tax Owed	$12,856	$13,525
After Tax Income	$87,144	$86,475
Income After Income & Property Tax	$86,328	$85,419
Maximum Disposable Income After Income, Property & Sales Taxes	$79,026	$78,029

After Tax Comparison Earning $150,000 Per Year Filing As Married Filing Jointly

	Alabama	Arkansas
Income Tax Owed	$25,411	$26,330
After Tax Income	$124,589	$123,670
Income After Income & Property Tax	$123,773	$122,614
Maximum Disposable Income After Income, Property & Sales Taxes	$113,304	$112,007

After Tax Comparison Earning $200,000 Per Year Filing As Married Filing Jointly

	Alabama	Arkansas
Income Tax Owed	$38,911	$40,080
After Tax Income	$161,089	$159,920
Income After Income & Property Tax	$160,273	$158,864
Maximum Disposable Income After Income, Property & Sales Taxes	$146,717	$145,121

After Tax Comparison Earning $250,000 Per Year Filing As Married Filing Jointly

	Alabama	Arkansas
Income Tax Owed	$53,330	$54,749
After Tax Income	$196,670	$195,251
Income After Income & Property Tax	$195,854	$194,195
Maximum Disposable Income After Income, Property & Sales Taxes	$179,288	$177,395

FAQ

Does Alabama or Arkansas have lower income taxes?

Alabama’s income tax falls into the following range:

• 2.00%: $0-$500
• 4.00%: $501-$3000
• 5.00%: $3,001+

Whereas Arkansas’s income tax is the following

• 2.00%: $0-$4,300
• 4.00%: $4,300-$8,500
• 4.90%: $8,501+

Does Alabama or Arkansas have lower property taxes?

Alabama has an average property tax rate of 0.37%

In comparison, Arkansas has an average property tax rate of 0.53%

Does Alabama or Arkansas have lower sales taxes?

Alabama has a state sales tax rate of 4.00% and an average local rate of 5.24% for a combined total rate of 9.24%.

In contrast, Arkansas has a state sales tax rate of 6.50% and an average local rate of 2.97% for a combined total rate of 9.47%.

Do you get to keep more money in Alabama or Arkansas?

Based on median household income after income, property and sales taxes Alabama gives you a maximum amount of disposable income of $46,129

In comparison, Arkansas gives you $41,629.

More Comparisons:

Alabama vs Mississippi
Alabama vs Kansas
Alabama vs New Mexico
Alabama vs Nebraska
Alabama vs Idaho

Sources:

https://en.wikipedia.org/wiki/State_income_tax#Rates_by_jurisdiction

https://www.bankrate.com/real-estate/property-tax-by-state/#by-state

https://fred.stlouisfed.org/release/tables?eid=259515&rid=249

https://www.fool.com/the-ascent/research/average-house-price-state/

https://taxfoundation.org/data/all/state/2022-sales-taxes/

https://www.forbes.com/advisor/income-tax-calculator/