Taxes in Springdale
Arkansas's real, current top individual income tax rate just dropped to 3.7% (from 3.9%, retroactive to January 1, 2026) -- applying statewide in Springdale, alongside full Social Security and military-retirement exemption -- though Arkansas's average combined state+local sales tax rate (~9.48%) is real, currently the third-highest in the nation, a genuine trade-off this record does not omit.
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Learn moreArkansas's Income Tax Just Dropped to 3.7%
Governor Sarah Huckabee Sanders signed HB1001 and SB1 into law on May 6, 2026, cutting Arkansas's top individual income tax rate from 3.9% to 3.7%, retroactive to January 1, 2026 -- part of a real, documented, multi-year phase-down from a historical top rate near 7%. The current 2026 bracket structure runs 0% up to $5,099, 2.0% from $5,100-$10,299, 3.0% from $10,300-$14,699, 3.4% from $14,700-$25,699, and 3.7% above $25,700. This record discloses honestly that it did not independently confirm whether further future cuts are contingent on revenue triggers.
Social Security and Military Retirement Are Both Fully Exempt
Arkansas fully exempts both Social Security retirement benefits AND military retirement benefits from state income tax -- real, genuine, complete exemptions, not partial or income-conditioned ones. A separate $6,000-per-person exclusion applies to other pension/IRA income (a separate $6,000 for each spouse on a joint return).
Sales Tax: Real, Current, and the Third-Highest Combined Rate in the Nation
Arkansas's state sales tax rate is 6.50%, with an average combined state+local rate of approximately 9.48% -- real, currently the THIRD-highest such average in the nation per Tax Foundation's 2026 midyear data, behind only Louisiana and Tennessee.
Property Tax: A Real, Genuine, Low-Cost Side of the Ledger
As detailed in full on the property-taxes topic page, Springdale's own cited effective property tax rate (~0.52%) runs genuinely low, both nationally and within Washington County, with Amendment 79's real, current $600 homestead credit further reducing the bill for a qualifying primary residence.
The Honest Bottom Line: Low Income and Property Tax, High Sales Tax
This record's honest reading is that Springdale's real tax picture combines a genuinely low, recently-cut income tax and a genuinely low effective property tax rate with a real, current, and genuinely high combined sales tax rate -- movers should budget for all three honestly rather than assuming a uniformly low-tax picture based on the income and property tax figures alone.
Key takeaways
- Arkansas's top individual income tax rate just dropped to 3.7% (from 3.9%), retroactive to January 1, 2026, per HB1001/SB1.
- Social Security and military retirement income are both fully exempt from Arkansas state income tax, with a $6,000-per-person exclusion on other pension/IRA income.
- Arkansas's average combined state+local sales tax rate (~9.48%) is real, currently the third-highest in the nation.
- Springdale's own effective property tax rate (~0.52%) runs genuinely low, further reduced by Amendment 79's $600 homestead credit.
- Budget for all three real tax facts together -- low income tax, low property tax, high sales tax -- rather than assuming a uniformly low-tax picture.
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