Arkansas reduces corporate tax rate

Arkansas’ top corporate income tax rate was reduced from 5.9% to 5.3%, effective Jan. 1.

The top corporate income tax rate applies to corporate income exceeding $25,000, according to the state Department of Finance and Administration.

Although Arkansas’ rate declined, it’s still higher than rates in Oklahoma and a few other surrounding states.

Oklahoma’s rate is 4%. According to the Arkansas Democrat-Gazette the top corporate income tax rate for other states surrounding Arkansas includes:

• Texas, 0%

• Missouri, 4%

• Mississippi, 5%

• Tennessee, 6.5%

• Louisiana, 7.5 %