Gov. Sanders signs income tax cuts into law
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Gov. Sarah Huckabee Sanders lowered the income tax rate Wednesday for the fourth time since she took office and ceremonially signed a bill to increase the homestead property tax credit by $75.
How it works: For individuals, the new law keeps a graduated structure, with lower-income brackets taxed from 0% to 3.7% and a bracket adjustment for taxpayers with net income between $94,701 and $97,600.
- For corporations, the law sets graduated rates of 1%, 2%, 3% and 4.1%, the new top rate.
- Homeowners will be eligible for a tax credit of $675, up from $600. The bill has been law since the fiscal session ended last week.
What they're saying: "Thanks to the fiscal discipline of those standing around me, we've cut income taxes as of today four times and returned $1.5 billion to the people of our state," Sanders said at a press conference Wednesday.
The other side: "I understand that we're trying to provide relief to Arkansans, but this tax bill really … will only provide about $50 to the average Arkansan," Sen. Fred Love (D-Little Rock) said from the chamber floor earlier in the day.
- Love is the Democratic nominee for governor and is term-limited from running again for the state Senate.
- He urged his colleagues to "provide some significant relief" for everyday Arkansans but didn't offer any specific suggestions.
What's next: The individual rate cut is retroactive to Jan. 1, 2026, and the corporate cut will begin Jan. 1, 2027.
- The homestead property tax credit is for assessment years beginning Jan. 1, 2026.