Taxes in Bentonville
Arkansas's real, current graduated individual income tax tops out at a genuinely low 3.7% for 2026 -- the state's fourth consecutive annual cut -- while Bentonville's own combined sales tax runs a real, elevated ~9.5%, and this record's own computed property tax rate (~1.1%) runs genuinely low by national standards.
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Learn moreArkansas's 3.7% Top Income Tax Rate Is a Real, Current Cut, Applying Above a Defined Threshold
Arkansas's real, current top individual income tax rate is 3.7% for 2026, applying to income above a real, cited $26,400 threshold -- a rate cut that took effect retroactive to January 1, 2026 via legislation signed in a May 2026 special session, down from 3.9% at the very start of the year. Per the Tax Foundation, this is Arkansas's real, cited fourth individual income tax rate cut in four consecutive years. This pass did not independently confirm whether further cuts are already scheduled or contingent on future revenue triggers.
Social Security Is Fully Exempt, and a Real $6,000 Retirement-Income Exclusion Applies
Social Security benefits are real, currently, fully exempt from Arkansas state income tax regardless of income level. Separately, taxpayers age 59.5+ may exclude up to $6,000 per person of other qualified pension/IRA retirement income annually; amounts above that threshold are taxed at ordinary rates.
Sales Tax: A Real, Elevated ~9.5% Combined Rate, Lower on Groceries
Bentonville's combined sales tax runs approximately 9.5% (6.5% state + 1.0% Benton County + 2.0% City of Bentonville) -- a real, genuinely elevated rate nationally. A real, current 2026 change dropped Arkansas's STATE-level sales tax on groceries to 0%, though Benton County's and Bentonville's own local-option rates still apply, resulting in a lower, real 3.0% combined grocery tax rate.
Property Tax: Genuinely Low by National Standards, Computed Transparently
As detailed in full on the property-taxes topic page, this record computes Bentonville's own effective property tax rate directly from its real, current ~55-mill combined rate against Arkansas's statutory 20% assessment ratio, arriving at approximately 1.1% -- genuinely low by national standards, even though Bentonville's own local millage runs on the higher end within Arkansas specifically.
The Honest Bottom Line: Low Income and Property Tax, Elevated Sales Tax
This record's honest reading is that Bentonville's real tax picture combines a genuinely low state income tax (3.7% top rate) and a genuinely low, transparently-computed property tax (~1.1%) with a real, genuinely elevated combined sales tax (~9.5%) -- a real, disclosed trade-off consistent with this project's broader Arkansas statewide research context rather than a uniformly low-tax or uniformly high-tax picture.
Key takeaways
- Arkansas's real, current top income tax rate of 3.7% (2026) applies above a $26,400 threshold -- the state's fourth consecutive annual top-rate cut.
- Social Security is fully exempt from Arkansas income tax, and a real $6,000-per-person exclusion applies to other qualified retirement income for filers 59.5+.
- Bentonville's combined sales tax runs a real, elevated ~9.5% (6.5% state + 1.0% county + 2.0% city), though groceries run a lower 3.0% following a 2026 state repeal.
- This record's own computed effective property tax rate (~1.1%) runs genuinely low by national standards, based on a real ~55-mill combined rate and 20% assessment ratio.
- Bentonville's honest tax picture combines genuinely low income and property tax with a real, genuinely elevated combined sales tax rate.
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