The Razorback state is forging ahead with a state income tax rate reduction starting in 2020. By 2021, the income tax rate drop will be one full percentage point.
Typically when a bill is passed in the state Legislature, if it does not have an emergency clause, it will take effect 90 days after we adjourn. But there are occasions when a specific date is written into the bill. This year, we passed several bills that will take effect Jan. 1, 2020. These impact everything from auto insurance to tax brackets.
• Act 182 reduces the top income tax rate from 6.9% to 6.6%. This will lower again to 5.9% in 2021.
Source: The Sentinel-Record