Mortgage Interest Deduction in Arkansas
State income tax rate
3.9%
Itemized deductions allowed
✅ Yes
State-Level Mortgage Interest Deduction
Arkansas has a top rate of 3.9% (reduced from 4.4% in 2024) and conforms to federal itemized deductions. Mortgage interest is deductible on state returns.
Combined Federal + Arkansas Savings
If you paid $18,000 in mortgage interest last year and itemize on both returns, your combined tax savings would be approximately:
- Federal (22% bracket): $3,960
- Arkansas (3.9% rate): $702
- Total estimated savings: $4,662
These are estimates based on a 22% federal bracket. Your actual savings depend on your specific tax situation.