LITTLE ROCK, Ark. (KNWA/KFTA) – Governor Asa Hutchinson signed a tax bill improving the state income tax to 4.9 % from 5.5 %. This directly affects those who make anywhere between $24,000-$84,000. The bill also addresses low and middle-income taxpayers through a $150 tax credit.
Heith Caudle, an enrolled agent with Avid Financial, says if you’re affected by the cut you’ll get a nice gift when your tax return comes back.
“This tax code is retroactive back to the first of the year,” Caudle said. “So when they file their tax returns, they will have had more Arkansas tax withholdings than what were necessary.”
Hutchinson says the ultimate goal of the new tax code is to give you and your family more financial freedom.
“These tax cuts strengthen Arkansas families by giving them more control over their own lives.”