Most states levy an income tax on their residents that is in addition to the federal income tax. Laws vary from state to state but in most states the state income tax is a tax on the annual earnings of individuals, corporations, trusts, limited liability companies, and other legal entities.

There are nine states that do not have a state income tax—including Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. But New Hampshire levies a tax on capital gains and Washington state recently enacted a tax on extraordinary profits from the sale of financial assets over $250,000.

In Arkansas, like most states, residents are subject to a state income tax in addition to the federal income tax. The state income tax in Arkansas applies to the annual earnings of individuals, corporations, trusts, limited liability companies, and other legal entities. The tax rates and brackets for individuals are progressive, meaning that the rate increases as income rises. Arkansas also taxes corporate income, with rates that vary depending on the amount of income earned by the corporation. It's important for residents and entities in Arkansas to be aware of their tax obligations under state law, including filing deadlines and potential deductions and credits that may reduce their tax liability. Unlike the states mentioned that do not have a state income tax or only tax certain types of income, Arkansas has a more comprehensive state income tax structure.