Compare taxes and see how much you save moving from Arkansas to Tennessee
Arkansas has progressive income tax rates from 2% to 4.4% (reduced from 4.9%), while Tennessee has no state income tax (0%). Moving to Tennessee saves $4,100/year on $100k income. Property taxes are nearly identical (AR 0.62% vs TN 0.67%). Both states have extremely high sales taxes (AR 9.46%, TN 9.55% highest). Overall, Tennessee offers significant tax savings. The AR-TN border sees migration to Memphis for jobs and zero income tax.
Progressive (Was 4.9%)
4 brackets, up to 4.4%
No Income Tax
Constitutional prohibition
At $100,000 income:
That is $342/month back in your pocket!
| Income | AR Tax | TN Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $1,850 | $0 | $1,850 | $18,500 |
| $100,000 | $4,100 | $0 | $4,100 | $41,000 |
| $200,000 | $8,500 | $0 | $8,500 | $85,000 |
| $500,000 | $21,700 | $0 | $21,700 | $217,000 |
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Moving from Arkansas to Tennessee? Multi-state returns are tricky—AR has income tax, TN doesn't. Get matched with a CPA who specializes in border state moves.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a CPA →On $100,000 income, Tennessee saves $4,100/year in income tax (AR 4.1% vs TN 0%). Property and sales taxes are nearly identical (both very high). Net savings: ~$4,100/year. Over 10 years: $41,000. However, Memphis has higher crime than Little Rock, and Memphis population is declining while Little Rock is stable. Choose TN for tax savings. Choose AR for safety/stability.
2023 tax reform reduced top rate from 4.9% to 4.4% (effective 2024) to compete with neighboring zero-tax states (TN, TX). Goal: reduce outmigration to Tennessee. Despite reduction, Arkansas still loses residents to TN due to zero income tax. However, 4.4% is more competitive than previous 4.9%. Further reductions are planned (goal: 3.9% by 2029).
Yes, moderate AR → TN migration. In 2023, 8,472 people moved AR → TN (vs 5,134 TN → AR), net gain of 3,338 for Tennessee. Migration drivers AR → TN: no income tax (save $4,100+ annually), better jobs (Memphis FedEx), better schools (#32 vs #43). Reverse migration (TN → AR) driven by: lower crime (Little Rock safer), natural beauty (Ozarks), Walmart jobs (Bentonville).
Memphis wins for taxes: no income tax (save $4,100 annually), larger job market (1.3M vs 740K), FedEx HQ. Little Rock wins for: lower crime, better quality of life, natural beauty (Ozarks proximity), stable population. Both have very high sales tax (9.46-9.55%). Choose Memphis for tax savings. Choose Little Rock for safety/quality of life.