I don't live in Arkansas, but I am going to buy rental property there. How much of my income is up for taxing on AR1000NR? Just my AR income or all my income?

[BrianAndrews23]

Just for fictitious details and easy numbers let say I have $100,000 in non AR based income and $5000 income (after expenses) in AR rental property income.

[DanielV01 · Accepted solution]

It depends.  However, when most states calculate your nonresident income tax, they factor in all of your income.

So, in your example, suppose Arkansas would assess 5,000 of tax on $100,000 of income.  Since your income is 5% of that amount, your AR tax would be 5% of $5,000, or $250.  (Ficticious tax number.  Arkansas' tax rate may be higher or lower).

If you live in a state with income tax, your resident state also taxes that income.  But they will give you a credit for the tax you must pay to AR on that income so that you are not double-taxed.