Arkansas has the highest income tax rate among the states that border it, according to 2008 data compiled by the Federation of Tax Administrators. The group has published a chart that shows Arkansas has a top rate of 7 percent. The chart can be viewed at: http://www.taxadmin.org/fta/rate/ind_inc.html
The following chart lists area states and their top income tax rates.
| State | Top Rate |
| Arkansas | 7.0% |
| Louisiana | 6.0% |
| Missouri | 6.0% |
| Oklahoma | 5.5% |
| Mississippi | 5.0% |
| Tennessee | Limited to Dividends And Interest |
| Texas1 | No Income Tax |
North Carolina is the only state in the southeast with a higher rate.
Other states in the region and their top income tax rates are as follows:
| North Carolina | 7.75% |
| South Carolina | 7.0% |
| West Virginia | 6.5% |
| Georgia | 6.0% |
| Kentucky | 6.0% |
| Virginia | 5.75% |
| Alabama | 5.0% |
1 According to the Federation, the following states do not have an income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. The income tax in New Hampshire and Tennessee is limited to dividends and interest.
