Indiana vs Arkansas Taxes: Income, Property & Sales

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

Indiana vs Arkansas Income Tax Comparison

	Indiana	Arkansas
Income Tax Rates & Thresholds	3.23%	2.00%: $0-$4,300 4.00%: $4,300-$8,500 4.90%: $8,501+
Median Income	$70,030	$53,980
Income Tax Paid On Median Household Income	$10,404	$7,352
Income After Tax Based on Median Household Income	$59,626	$46,628

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Indiana vs Arkansas Property Tax Comparison

	Indiana	Arkansas
Average Property Tax Rate	0.74%	0.53%
Average House Price By State	$232,390	$199,284
Average Property Tax Owed Per Year	$1,720	$1,056
Income After Income Taxes & Property Taxes Based On Median State Household Income	$57,906	$45,572

Indiana vs Arkansas Sales Tax Comparison

	Indiana	Arkansas
Average State Sales Tax	7.00%	6.50%
Average Local Sales Tax Across the State	0.00%	2.97%
Average Combined Sales Tax Rate	7.00%	9.47%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$3,788	$3,942
Maximum Disposable Income Based on Median Household Income	$54,118	$41,629

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

	Indiana	Arkansas
Income Tax Owed	$4,300	$4,906
After Tax Income	$35,700	$35,094
Income After Income & Property Tax	$33,980	$34,038
Maximum Disposable Income After Income, Property & Sales Taxes	$31,757	$31,093

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

	Indiana	Arkansas
Income Tax Owed	$7,873	$8,933
After Tax Income	$52,127	$51,067
Income After Income & Property Tax	$50,407	$50,011
Maximum Disposable Income After Income, Property & Sales Taxes	$47,110	$45,684

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

	Indiana	Arkansas
Income Tax Owed	$12,919	$14,433
After Tax Income	$67,081	$65,567
Income After Income & Property Tax	$65,361	$64,511
Maximum Disposable Income After Income, Property & Sales Taxes	$61,085	$58,930

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

	Indiana	Arkansas
Income Tax Owed	$17,965	$19,933
After Tax Income	$82,035	$80,067
Income After Income & Property Tax	$80,315	$79,011
Maximum Disposable Income After Income, Property & Sales Taxes	$75,061	$72,176

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

	Indiana	Arkansas
Income Tax Owed	$11,646	$13,525
After Tax Income	$88,354	$86,475
Income After Income & Property Tax	$86,634	$85,419
Maximum Disposable Income After Income, Property & Sales Taxes	$80,967	$78,029

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

	Indiana	Arkansas
Income Tax Owed	$23,316	$26,330
After Tax Income	$126,684	$123,670
Income After Income & Property Tax	$124,964	$122,614
Maximum Disposable Income After Income, Property & Sales Taxes	$116,789	$112,007

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

	Indiana	Arkansas
Income Tax Owed	$35,931	$40,080
After Tax Income	$164,069	$159,920
Income After Income & Property Tax	$162,349	$158,864
Maximum Disposable Income After Income, Property & Sales Taxes	$151,728	$145,121

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

	Indiana	Arkansas
Income Tax Owed	$49,465	$54,749
After Tax Income	$200,535	$195,251
Income After Income & Property Tax	$198,815	$194,195
Maximum Disposable Income After Income, Property & Sales Taxes	$185,809	$177,395

FAQ

Does Indiana or Arkansas have lower income taxes?

Indiana’s income tax falls into the following range: 3.23%

Whereas Arkansas’s income tax is the following

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

Does Indiana or Arkansas have lower property taxes?

Indiana has an average property tax rate of 0.74%

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

Does Indiana or Arkansas have lower sales taxes?

Indiana has a state sales tax rate of 7.00% and an average local rate of 0.00% for a combined total rate of 7.00%.

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 Indiana or Arkansas?

Based on median household income after income, property and sales taxes Indiana gives you a maximum amount of disposable income of $54,118

In comparison, Arkansas gives you $41,629.

More Comparisons:

Indiana vs Mississippi
Indiana vs Kansas
Indiana vs New Mexico
Indiana vs Nebraska
Indiana 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/