Capital Gains Rates
The Combined Rate for Arkansas accounts for Federal, State, and Local tax rate on capital gains income, the 3.8 percent Surtax on capital gains and the marginal effect of Pease Limitations (which results in a tax rate increase of 1.18 percent). The Combined Rate also accounts for Arkansas' allowance of a 30% State exclusion of Federally taxable capital gains.
Rates apply to individuals earning more than $75,000. Two special tax tables exist for low- and middle-income individuals. One for individuals below $21,000 in income, and one for those between $21,000 and $75,000. Arkansas' tax brackets are indexed for inflation, and are updated yearly to reflect changes in cost of living. Arkansas allows a credit for taxes paid to another state if the amount of income required to report to Arkansas as Arkansas income is also being taxed by the other state; This credit cannot exceed the Arkansas income tax on the same income and cannot exceed owed in Arkansas.
Investor's Guidebook to Fractional 1031 Replacement Properties