Arkansas State Income Tax Burden

Arkansas’ 1999 income tax threshold — the income level at which families begin paying income tax:	Ranking among 42 states with income taxes
For two-parent families of four: $15,600.	18th lowest
For single-parent families of three: $13,000.	18th lowest
Arkansas’ 1999 income tax on working-poor and near-poor families:
For families of four with incomes at the poverty line ($17,028): $287.	7th highest
For families of three with incomes at the poverty line ($13,290): $7.	18th highest
For families of four with incomes at 125% of poverty line ($21,285): $500.	7th highest
For families of four with incomes at 125% of poverty line ($16,613): $359.	8th highest
Despite progress, Arkansas continues to tax families with incomes below the poverty line. Arkansas’ tax threshold for families increased substantially in 1998. Despite this progress, the poverty-level income tax increased to $287 for 1999. In 1991, a family of four owed tax when its income exceeded 77 percent of the poverty line. For 1999, Arkansas’ tax threshold has risen to 92 percent of the poverty line.