Tax News Update    Email this document    Print this document  

September 20, 2023

Arkansas lowers personal income and corporate tax rates starting in 2024

On September 15, 2023, Governor Sarah Huckabee Sanders signed into law SB 8, which, effective January 1, 2024, lowers the top personal tax rate from 4.7% to 4.4% and reduces the top corporate tax rate from 5.1% to 4.8% for domestic and foreign corporations.

The law also provides for a non-refundable income tax credit of $150 for individual taxpayers and $300 for married taxpayers for tax year 2023.

Supplemental wages

Effective January 1, 2024, the supplemental rate of withholding on bonuses and other irregular wage payments is reduced from 4.7% to 4.4%. 

Ernst & Young LLP insights

This is the third consecutive year that Arkansas has lowered personal income tax rates. Under SB 549, the top marginal personal income tax rate was lowered from 4.9% to 4.7% retroactive to January 1, 2023. The Arkansas Department of Finance and Administration issued revised income tax withholding instructions effective with wages paid on and after June 1, 2023. (See Tax Alert 2023-1070.)


Contact Information
For additional information concerning this Alert, please contact:
Workforce Tax Services - Employment Tax Advisory Services
   • Kristie Lowery (
   • Kenneth Hausser (
   • Debera Salam (

Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor