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On September 21, 2025, the Arkansas legislature made history by passing a comprehensive tax reform bill aimed at lowering rates for residents across the state. The bill, which has been months in the making, represents a significant step towards simplifying the state's tax code and bringing relief to Arkansas taxpayers.One of the most notable aspects of the tax reform bill is the reduction of income tax rates for individuals and families. Under the new law, the top marginal tax rate will be lowered from 6.9% to 5.9%, while the lower income tax brackets will also see decreases. This move is expected to save the average Arkansas taxpayer hundreds of dollars each year and provide much-needed relief to those struggling with high tax burdens.In addition to lowering income tax rates, the tax reform bill also includes provisions aimed at simplifying the tax code and making it easier for residents to file their returns. One such provision is the expansion of the standard deduction, which will now be more in line with federal standards. This change will make it easier for many taxpayers to claim deductions without the need for complex calculations or itemized deductions.Furthermore, the tax reform bill also includes measures to provide tax relief for small businesses and corporations operating in Arkansas. One such measure is the reduction of the corporate tax rate from 6.5% to 5.5%, making Arkansas a more attractive destination for businesses looking to expand or relocate.Overall, the passage of the tax reform bill represents a significant victory for Arkansas residents and businesses alike. By lowering rates, simplifying the tax code, and providing relief to taxpayers, the state legislature has taken a major step towards fostering economic growth and prosperity for all Arkansans. The bill is expected to be signed into law by Governor John Doe in the coming days and will go into effect for the 2026 tax year.