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Individual Income Taxes Arkansas' individual income tax is similar to the federal personal income tax. It is based on the net income of resident and non-resident individuals, fiduciaries and beneficiaries of estates and trusts. Residents of Arkansas are taxed on income from all sources, regardless of where earned. Income from social security and railroad retirement plans are not taxed. Military are allowed a $6000 exemption for active duty, reserve and guard pay. Also, each taxpayer is allowed a maximum $6000 exemption for all qualified IRA's, pensions, and disability plans. For complete information, contact the AR Dept of Finance & Administration. Personal & Arkansas Real Estate Property Taxes Property tax is an important source of revenue for local governments, including school districts and county and city governments. Revenue generated by the property tax is used to finance education, roads, hospitals, libraries, public safety and for the general operation of county and city governments. Property taxes are based on two kinds of property: real property and personal property. Real property is all tangible real estate that is fixed, immovable property. This includes land and all improvements made to that land, such as buildings, homes and barns. All property, except agricultural land, has an assessed value that is equal to its market value. Personal property is everything that is subject to ownership, tangible and movable. Items of household furniture and furnishings, clothing, appliances and other personal property used within a home were exempted from personal property tax. Examples of taxable personal property are vehicles and boats. There are constitutional limits on the amount that can be assessed. Also, in 2001 a $300 homestead real estate property tax credit was granted to all homeowners and the appraised value was frozen for all homeowners over 65 living in Arknasas. The result is the one of the lowest property tax in the United States. Review this link by NATCO for a detailed breakdown of Taxes: Income, Sales & Property in Baxter & Marion Counties. For more information, contact AL Page at Exit Realty Mountain Home or visit the Online Arkansas Relocation and Retirement Guide for a detailed summary of Arkansas personal and real estate taxes. |
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