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 $79,300. Two special tax tables exist for low and middle income individuals. One for individuals below $22,000 in income, and one for those between $22,000 and $79,300. Bracket levels adjusted for inflation each year. Release dates for tax bracket inflation adjustments vary by state and may fall after the end of the applicable tax year. Standard deduction or personal exemption is structured as a tax credit. Arkansas has a "tax benefit recapture," by which many high-income taxpayers pay their top tax rate on all income, not just on amounts above the benefit threshold.
Investor's Guidebook to Fractional 1031 Replacement Properties