Section 26-51-301 - Individuals exempt from taxation or qualifying for low-income tax credit - Definitions(a) As used in this section: (1) "Head of household" means the same as defined in 26 U.S.C. § 2(b), as in effect on January 1, 2011; and(2) "Surviving spouse" means the same as defined in 26 U.S.C. § 2(a), as in effect on January 1, 2011.(b)(1) Beginning with tax year 2010, the following taxpayers are exempt from state individual income tax: (A) A single individual whose gross income is less than ten thousand six hundred eighty-two dollars ($10,682) for any income year;(B) A married couple filing jointly with one (1) or fewer dependents whose gross income is less than eighteen thousand twelve dollars ($18,012) for any income year;(C) A married couple filing jointly with two (2) or more dependents whose gross income is less than twenty-one thousand six hundred seventy-seven dollars ($21,677) for any income year; and(D) A head of household or surviving spouse with one (1) or more dependents whose gross income is less than fifteen thousand one hundred eighty-five dollars ($15,185) for any income year.(2) Beginning with tax year 2011:(A) A head of household or surviving spouse with one (1) or fewer dependents whose gross income is less than the 2010 base rate of fifteen thousand one hundred eighty-five dollars ($15,185) plus the yearly cost-of-living adjustment provided by subsection (e) of this section for any income year is exempt from state individual income tax; and(B) A head of household or surviving spouse with two (2) or more dependents whose gross income is less than the 2010 base rate of eighteen thousand one hundred one dollars ($18,101) plus the yearly cost-of-living adjustment provided by subsection (e) of this section for any income year is exempt from state individual income tax.(c)(1) Beginning with tax year 2010, the following taxpayers are eligible for a low-income tax credit: (A) A single individual whose gross income for the taxable year is ten thousand six hundred eighty-two dollars ($10,682) or more but less than fourteen thousand dollars ($14,000);(B) A married couple filing jointly with one (1) or fewer dependents whose gross income for the taxable year is eighteen thousand twelve dollars ($18,012) or more but less than twenty-two thousand four hundred dollars ($22,400);(C) A married couple filing jointly with two (2) or more dependents whose gross income for the taxable year is twenty-one thousand six hundred seventy-seven dollars ($21,677) or more but less than twenty-seven thousand eight hundred dollars ($27,800); and(D) A head of household or a surviving spouse with one (1) or more dependents whose gross income for the taxable year is fifteen thousand one hundred eighty-five dollars ($15,185) or more but less than nineteen thousand six hundred dollars ($19,600).(2) Beginning with tax year 2011:(A) A head of household or a surviving spouse with one (1) or fewer dependents whose gross income for the taxable year is more than the 2010 base rate of fifteen thousand one hundred eighty-five dollars ($15,185) plus the cost-of-living adjustment provided by subsection (e) of this section but less than the 2010 base rate of nineteen thousand six hundred dollars ($19,600) plus the cost-of-living adjustment provided by subsection (e) of this section is eligible for a low-income tax credit; and(B) A head of household or a surviving spouse with two (2) or more dependents whose gross income for the taxable year is more than the 2010 base rate of eighteen thousand one hundred one dollars ($18,101) plus the cost-of-living adjustment provided by subsection (e) of this section but less than the 2010 base rate of twenty-two thousand two hundred dollars ($22,200) plus the cost-of-living adjustment provided by subsection (e) of this section is eligible for a low-income tax credit.(d)(1) For income tax year 2010, the low-income tax credit in subdivision (c)(1) of this section shall be determined in accordance with the tables below, based upon the taxpayer's filing status: Single Taxpayer |
From | Less Than | Credit |
$10,682 | $10,700 | $133 |
$10,701 | $10,800 | $129 |
$10,801 | $10,900 | $125 |
$10,901 | $11,000 | $121 |
$11,001 | $11,100 | $117 |
$11,101 | $11,200 | $113 |
$11,201 | $11,300 | $109 |
$11,301 | $11,400 | $105 |
$11,401 | $11,500 | $101 |
$11,501 | $11,600 | $97 |
$11,601 | $11,700 | $93 |
$11,701 | $11,800 | $89 |
$11,801 | $11,900 | $85 |
$11,901 | $12,000 | $81 |
$12,001 | $12,100 | $77 |
$12,101 | $12,200 | $73 |
$12,201 | $12,300 | $69 |
$12,301 | $12,400 | $65 |
$12,401 | $12,500 | $61 |
$12,501 | $12,600 | $57 |
$12,601 | $12,700 | $53 |
$12,701 | $12,800 | $49 |
$12,801 | $12,900 | $45 |
$12,901 | $13,000 | $41 |
$13,001 | $13,100 | $37 |
$13,101 | $13,200 | $33 |
$13,201 | $13,300 | $29 |
$13,301 | $13,400 | $25 |
$13,401 | $13,500 | $21 |
$13,501 | $13,600 | $17 |
$13,601 | $13,700 | $13 |
$13,701 | $13,800 | $9 |
$13,801 | $13,900 | $5 |
$13,901 | $14,000 | $1 |
Married Filing Jointly With One (1) or Fewer Dependents |
From | Less Than | Credit |
$18,012 | $18,100 | $302 |
$18,101 | $18,200 | $295 |
$18,201 | $18,300 | $288 |
$18,301 | $18,400 | $281 |
$18,401 | $18,500 | $274 |
$18,501 | $18,600 | $267 |
$18,601 | $18,700 | $260 |
$18,701 | $18,800 | $253 |
$18,801 | $18,900 | $246 |
$18,901 | $19,000 | $239 |
$19,001 | $19,100 | $232 |
$19,101 | $19,200 | $225 |
$19,201 | $19,300 | $218 |
$19,301 | $19,400 | $211 |
$19,401 | $19,500 | $204 |
$19,501 | $19,600 | $197 |
$19,601 | $19,700 | $190 |
$19,701 | $19,800 | $183 |
$19,801 | $19,900 | $176 |
$19,901 | $20,000 | $169 |
$20,001 | $20,100 | $162 |
$20,101 | $20,200 | $155 |
$20,201 | $20,300 | $148 |
$20,301 | $20,400 | $141 |
$20,401 | $20,500 | $134 |
$20,501 | $20,600 | $127 |
$20,601 | $20,700 | $120 |
$20,701 | $20,800 | $113 |
$20,801 | $20,900 | $106 |
$20,901 | $21,000 | $99 |
$21,001 | $21,100 | $92 |
$21,101 | $21,200 | $85 |
$21,201 | $21,300 | $78 |
$21,301 | $21,400 | $71 |
$21,401 | $21,500 | $64 |
$21,501 | $21,600 | $57 |
$21,601 | $21,700 | $50 |
$21,701 | $21,800 | $43 |
$21,801 | $21,900 | $36 |
$21,901 | $22,000 | $29 |
$22,001 | $22,100 | $22 |
$22,101 | $22,200 | $15 |
$22,201 | $22,300 | $8 |
$22,301 | $22,400 | $1 |
Married Filing Jointly With Two (2) or More Dependents |
From | Less Than | Credit |
$21,677 | $21,700 | $432 |
$21,701 | $21,800 | $425 |
$21,801 | $21,900 | $418 |
$21,901 | $22,000 | $411 |
$22,001 | $22,100 | $404 |
$22,101 | $22,200 | $397 |
$22,201 | $22,300 | $390 |
$22,301 | $22,400 | $383 |
$22,401 | $22,500 | $376 |
$22,501 | $22,600 | $369 |
$22,601 | $22,700 | $362 |
$22,701 | $22,800 | $355 |
$22,801 | $22,900 | $348 |
$22,901 | $23,000 | $341 |
$23,001 | $23,100 | $334 |
$23,101 | $23,200 | $327 |
$23,201 | $23,300 | $320 |
$23,301 | $23,400 | $313 |
$23,401 | $23,500 | $306 |
$23,501 | $23,600 | $299 |
$23,601 | $23,700 | $292 |
$23,701 | $23,800 | $285 |
$23,801 | $23,900 | $278 |
$23,901 | $24,000 | $271 |
$24,001 | $24,100 | $264 |
$24,101 | $24,200 | $257 |
$24,201 | $24,300 | $250 |
$24,301 | $24,400 | $243 |
$24,401 | $24,500 | $236 |
$24,501 | $24,600 | $229 |
$24,601 | $24,700 | $222 |
$24,701 | $24,800 | $215 |
$24,801 | $24,900 | $208 |
$24,901 | $25,000 | $201 |
$25,001 | $25,100 | $194 |
$25,101 | $25,200 | $187 |
$25,201 | $25,300 | $180 |
$25,301 | $25,400 | $173 |
$25,401 | $25,500 | $166 |
$25,501 | $25,600 | $159 |
$25,601 | $25,700 | $152 |
$25,701 | $25,800 | $145 |
$25,801 | $25,900 | $138 |
$25,901 | $26,000 | $131 |
$26,001 | $26,100 | $124 |
$26,101 | $26,200 | $117 |
$26,201 | $26,300 | $110 |
$26,301 | $26,400 | $103 |
$26,401 | $26,500 | $96 |
$26,501 | $26,600 | $89 |
$26,601 | $26,700 | $82 |
$26,701 | $26,800 | $75 |
$26,801 | $26,900 | $68 |
$26,901 | $27,000 | $61 |
$27,001 | $27,100 | $54 |
$27,101 | $27,200 | $47 |
$27,201 | $27,300 | $40 |
$27,301 | $27,400 | $33 |
$27,401 | $27,500 | $26 |
$27,501 | $27,600 | $19 |
$27,601 | $27,700 | $12 |
$27,701 | $27,800 | $5 |
Head of Household or Surviving Spouse With One (1) or More Dependents for Tax Year 2010 and with One (1) or Fewer Dependents Beginning with Tax Year 2011 |
From | Less Than | Credit |
$15,185 | $15,200 | $270 |
$15,201 | $15,300 | $264 |
$15,301 | $15,400 | $258 |
$15,401 | $15,500 | $252 |
$15,501 | $15,600 | $246 |
$15,601 | $15,700 | $240 |
$15,701 | $15,800 | $234 |
$15,801 | $15,900 | $228 |
$15,901 | $16,000 | $222 |
$16,001 | $16,100 | $216 |
$16,101 | $16,200 | $210 |
$16,201 | $16,300 | $204 |
$16,301 | $16,400 | $198 |
$16,401 | $16,500 | $192 |
$16,501 | $16,600 | $186 |
$16,601 | $16,700 | $180 |
$16,701 | $16,800 | $174 |
$16,801 | $16,900 | $168 |
$16,901 | $17,000 | $162 |
$17,001 | $17,100 | $156 |
$17,101 | $17,200 | $150 |
$17,201 | $17,300 | $144 |
$17,301 | $17,400 | $138 |
$17,401 | $17,500 | $132 |
$17,501 | $17,600 | $126 |
$17,601 | $17,700 | $120 |
$17,701 | $17,800 | $114 |
$17,801 | $17,900 | $108 |
$17,901 | $18,000 | $102 |
$18,001 | $18,100 | $96 |
$18,101 | $18,200 | $90 |
$18,201 | $18,300 | $84 |
$18,301 | $18,400 | $78 |
$18,401 | $18,500 | $72 |
$18,501 | $18,600 | $66 |
$18,601 | $18,700 | $60 |
$18,701 | $18,800 | $54 |
$18,801 | $18,900 | $48 |
$18,901 | $19,000 | $42 |
$19,001 | $19,100 | $36 |
$19,101 | $19,200 | $30 |
$19,201 | $19,300 | $24 |
$19,301 | $19,400 | $18 |
$19,401 | $19,500 | $12 |
$19,501 | $19,600 | $6 |
(2) For income tax year 2011, the low-income tax credit in subdivision (c)(2)(B) of this section shall be determined using the 2010 base-year table below and adding the yearly cost-of-living adjustment provided in subsection (e) of this section: Head of Household or Surviving Spouse With Two (2) or More Dependents |
From | Less Than | Credit |
$18,101 | $18,200 | $365 |
$18,201 | $18,300 | $356 |
$18,301 | $18,400 | $347 |
$18,401 | $18,500 | $338 |
$18,501 | $18,600 | $329 |
$18,601 | $18,700 | $320 |
$18,701 | $18,800 | $311 |
$18,801 | $18,900 | $302 |
$18,901 | $19,000 | $293 |
$19,001 | $19,100 | $284 |
$19,101 | $19,200 | $275 |
$19,201 | $19,300 | $266 |
$19,301 | $19,400 | $257 |
$19,401 | $19,500 | $248 |
$19,501 | $19,600 | $239 |
$19,601 | $19,700 | $230 |
$19,701 | $19,800 | $221 |
$19,801 | $19,900 | $212 |
$19,901 | $20,000 | $203 |
$20,001 | $20,100 | $194 |
$20,101 | $20,200 | $185 |
$20,201 | $20,300 | $176 |
$20,301 | $20,400 | $167 |
$20,401 | $20,500 | $158 |
$20,501 | $20,600 | $149 |
$20,601 | $20,700 | $140 |
$20,701 | $20,800 | $131 |
$20,801 | $20,900 | $122 |
$20,901 | $21,000 | $113 |
$21,001 | $21,100 | $104 |
$21,101 | $21,200 | $95 |
$21,201 | $21,300 | $86 |
$21,301 | $21,400 | $77 |
$21,401 | $21,500 | $68 |
$21,501 | $21,600 | $59 |
$21,601 | $21,700 | $50 |
$21,701 | $21,800 | $41 |
$21,801 | $21,900 | $32 |
$21,901 | $22,000 | $23 |
$22,001 | $22,100 | $14 |
$22,101 | $22,200 | $5 |
(e)(1) For tax years beginning on or after January 1, 2010, for purposes of determining the exemptions from income tax in subsection (b) of this section and determining eligibility for the low-income tax credit in this section, the gross income amounts in subsections (b) and (c) of this section shall be adjusted annually by the cost-of-living adjustment for the current calendar year, rounded to the nearest whole dollar.(2) For purposes of this subsection, the cost-of-living adjustment for any calendar year is the percentage, if any, not to exceed three percent (3%) by which the Consumer Price Index for the current calendar year exceeds the Consumer Price Index for the preceding calendar year.(3) The Consumer Price Index for any calendar year is the average of the Consumer Price Index as of the close of the twelve-month period ending on August 31 of that calendar year.(4) As used in this subsection, "Consumer Price Index" means the last Consumer Price Index for All Urban Consumers published by the United States Department of Labor.(f) For tax years beginning on or after January 1, 2010, following the cost-of-living adjustment for the Consumer Price Index as provided in subsection (e) of this section, the low-income tax credit in this section and the gross income limitations outlined in the tables in subsection (d) of this section shall be adjusted annually using the following method:(1) For a single individual, the amount of the low-income tax credit allowable shall be eighty percent (80%) of the income tax due upon the amount of gross income in subdivision (c)(1)(A) of this section, indexed as provided in subsection (e) of this section, and reduced, but not below zero dollars ($0.00), by four dollars ($4.00) for each one hundred dollars ($100), or fraction thereof, that the taxpayer's gross income exceeds the indexed amount;(2) For a married couple filing jointly with one (1) or fewer dependents, the amount of the low-income tax credit allowable shall be eighty percent (80%) of the income tax due upon the amount of gross income in subdivision (c)(1)(B) of this section, indexed as provided in subsection (e) of this section, and reduced, but not below zero dollars ($0.00), by seven dollars ($7.00) for each one hundred dollars ($100), or fraction thereof, that the taxpayer's gross income exceeds the indexed amount;(3) For a married couple filing jointly with two (2) or more dependents, the amount of the low-income tax credit allowable shall be eighty percent (80%) of the income tax due upon the amount of gross income in subdivision (c)(1)(C) of this section, indexed as provided in subsection (e) of this section, and reduced, but not below zero dollars ($0.00), by seven dollars ($7.00) for each one hundred dollars ($100), or fraction thereof, that the taxpayer's gross income exceeds the indexed amount;(4) For a head of household or surviving spouse with one (1) or more dependents, the amount of the low-income tax credit allowable shall be eighty percent (80%) of the income tax due upon the amount of gross income in subdivision (c)(1)(D) of this section, indexed as provided in subsection (e) of this section, reduced, but not below zero dollars ($0.00), by six dollars ($6.00) for each one hundred dollars ($100), or fraction thereof, that the taxpayer's gross income exceeds the indexed amount; or(5) Beginning with tax year 2011:(A) For a head of household or surviving spouse with one (1) or fewer dependents, the amount of the low-income tax credit allowable shall be eighty percent (80%) of the income tax due upon the amount of gross income in subdivision (c)(2)(A) of this section, indexed as provided in subsection (e) of this section, reduced, but not below zero dollars ($0.00), by six dollars ($6.00) for each one hundred dollars ($100), or fraction thereof, that the taxpayer's gross income exceeds the indexed amount; or(B) For a head of household or surviving spouse with two (2) or more dependents, the amount of the low-income tax credit allowable shall be eighty percent (80%) of the income tax due upon the amount of gross income in subdivision (c)(2)(B) of this section, indexed as provided in subsection (e) of this section, reduced, but not below zero dollars ($0.00), by nine dollars ($9.00) for each one hundred dollars ($100), or fraction thereof, that the taxpayer's gross income exceeds the indexed amount.(g) For the purpose of determining eligibility for the low-income tax credit in this section, income from all sources shall be used in determining the gross income of the taxpayer regardless of whether the income is taxable in Arkansas.(h) A taxpayer is not eligible for the low-income tax credit in this section if the taxpayer claims an exemption in § 26-51-306 or § 26-51-307, or if the taxpayer itemizes deductions.Amended by Act 2021, No. 483,§ 6, eff. 7/28/2021.Acts 1973, No. 4, §§ 1, 3; A.S.A. 1947, §§ 84-2090, 84-2092; Acts 1991, No. 95, § 2; 1993, No. 785, § 6; 1995, No. 1160, § 15; Acts 1997, No. 328, § 2; 2005, No. 675, § 1; 2005, No. 2187, § 1; 2007, No. 195, § 1; 2011, No. 736, § 1.