An inheritance tax is a tax imposed on a person who inherits property from a deceased person. There is no federal inheritance tax, but some states have an inheritance tax.
In the state of Arkansas, there is no state inheritance tax. This means that individuals who inherit property or money from a deceased person are not required to pay taxes to the state of Arkansas simply because they have received an inheritance. While there is no federal inheritance tax, there is a federal estate tax that applies to the transfer of the deceased person's assets before they are distributed to the heirs, but this only affects estates exceeding a certain value threshold, which is adjusted annually for inflation. It's important for individuals dealing with an inheritance to consult with an attorney to understand any potential tax implications, including federal estate taxes and any taxes that may be applicable if the property is from a state that does have an inheritance tax.