Arkansas

Moving from North Dakota to Arkansas would RAISE your total state and local tax burden from 8.9% of income to 9.4% of income — an increase of +0.5 pts. On a $100K household budget, that is roughly $500 more per year in combined state and local taxes.

Arkansas top marginal income tax rate is 3.9%, versus 2.5% in North Dakota. Compare across your expected income bracket — top rates kick in at different thresholds in each state.

Arkansas state sales tax is 6.50%. With average local add-ons, the combined rate is 9.45%. This applies to most retail purchases but rules on groceries, prescriptions, and services vary.

Arkansas median effective property tax rate is 0.64% of home value. On a $400,000 home, that is roughly $2,560/year. Property tax typically funds schools, municipalities, and county services — rates vary sharply within a state by school district.

Arkansas imposes annual vehicle property or ad valorem tax. Expect a recurring annual assessment based on the vehicle's value or registration class, in addition to one-time sales tax at purchase. Budget for this ongoing cost.

Arkansas has NO state estate tax and NO state inheritance tax. Heirs are subject only to federal estate tax (over $13.99M in 2025). This is favorable for wealth transfer.

In Arkansas: Social Security is not taxed. Pensions and 401(k)/IRA withdrawals are partially taxed.

Arkansas capital gains treatment: 50% of long-term capital gains exempt; rest taxed as ordinary income. Compare to federal long-term capital gains rates (0%, 15%, or 20%) — some states offer preferential treatment for long-term holdings, while others tax capital gains as ordinary income.

Arkansas gas tax is 24.8¢/gal — 1.8¢/gal higher than North Dakota's 23.0¢/gal. For a 15,000 mile/year driver getting 25 mpg, each 1¢/gal of gas tax = about $6/year.

Arkansas residency rules: 6-month (183-day) presumption; domicile-based with intent-of-return test. To establish residency for tax purposes, typical steps include: update driver's license and vehicle registration, register to vote, file a homestead declaration, close home-state bank accounts where possible, and spend clearly more than 183 days in your new state. If your former state is aggressive (e.g., CA, NY, NJ, OR), keep documentation of every day spent in each state.

Arkansas recent tax law changes: Top rate cut from 4.4% to 3.9% effective 2024 (Act 1 of 2024 2nd Extraordinary Session).

For the most current tax information in Arkansas, visit the official source at https://www.dfa.arkansas.gov/income-tax/. Tax laws change annually; verify rates and rules before making a permanent move. Consult a CPA for advice specific to your situation.