Arkansas Guide for Canadians

Quick Facts

State Income Tax	0.9% - 4.4% graduated rates (individual), 4.8% flat rate (corporate)
Sales Tax	6.5% state + local (average 9.46% total)
Driver's License Grace Period	30 days for residents
Residency Requirement for Tax	Domiciled in Arkansas for 183+ days
Vehicle Registration Deadline	30 days for residents
REAL ID Deadline	May 7, 2025 for domestic flights

First 90 Days Checklist

Week 1-2: Essential Documents

• Gather required documents for driver's license
• Open US bank account
• Set up temporary mailing address

Week 3-4: Official Registration

• Apply for Arkansas driver's license (within 30 days)
• Register vehicle if brought from Canada (within 30 days)
• Register to vote

Month 2-3: Establishing Residency

• Update address with Canadian financial institutions
• Establish Arkansas ties
• Consider Arkansas vehicle insurance

Driver's License & Vehicle Requirements

For Canadian Citizens

Required Documents:

• Original valid Canadian passport
• Proof of Social Security Number (if applicable)
• Two proofs of Arkansas residential address

Testing Requirements:

• Written test required for Canadian citizens
• Road test required - Arkansas does not recognize foreign licenses
• Vision screening required

Important Notes:

• 30-day limit to get Arkansas license after residency
• REAL ID required by May 7, 2025 for air travel
• Both written and road tests required for Canadians

Vehicle Registration

• Register within 30 days of establishing residency
• Safety inspection required
• Emissions testing not required statewide
• Arkansas insurance required for registration

Tax & Residency Considerations

Arkansas State Tax Benefits

• **Low individual income tax** 0.9% - 4.4% graduated rates
• **Corporate income tax** 4.8% flat rate (reduced from 5.1%)
• **No inheritance tax**
• **Low property taxes** (0.62% effective rate)
• **Moderate sales tax** 6.5% state rate (9.46% average total)

Establishing Arkansas Tax Residency

Arkansas residency is based on domicile and presence:

• Domiciled in Arkansas for 183+ days during tax year
• Intent to make Arkansas your permanent home
• Physical presence supporting domicile intent

Documentation to Establish Residency

• Arkansas driver's license and voter registration
• Bank accounts and utility bills in Arkansas
• Employment or business activities in Arkansas
• Professional licenses, club memberships

US Federal Tax Implications for Canadians

Important: Under the Substantial Presence Test, you may be considered a U.S. resident for tax purposes.
Recommendation: Consult a cross-border tax professional.

Healthcare Considerations

Insurance Options

• Arkansas has limited public health insurance for non-citizens
• Travel insurance strongly recommended
• Consider US health insurance if staying permanently
• Quality medical facilities in Little Rock, Fayetteville, Fort Smith

Prescription Medications

• Bring adequate supply from Canada
• Understand prescription transfer requirements
• US prices often higher than Canadian prices
• Research pharmacy options and discount programs

Special Considerations for Snowbirds

Maintaining Canadian Ties

• Keep principal residence in Canada
• Monitor days in U.S. for tax reasons
• Maintain Canadian insurance & banking relationships
• Arkansas domicile-based residency requires careful planning

Property Considerations

• Very affordable property values throughout state
• Homestead exemption available (up to $350 annually)
• Impact on Canada's principal residence exemption
• Consider flood insurance for certain areas

Climate & Lifestyle Benefits

• Four seasons with mild winters
• Natural beauty - mountains, lakes, forests
• Outdoor recreation opportunities
• Lowest cost of living in the region

Travel Documentation

• Ensure passport validity (6+ months remaining)
• Consider Global Entry/NEXUS for easier border crossings
• Track intent and domicile establishment carefully
• No Enhanced Driver's License available in Arkansas

Cost of Living Advantage

Arkansas offers exceptional value with low taxes, very affordable housing, and quality healthcare. The state provides abundant natural beauty and outdoor recreation opportunities.

Weather Considerations

Arkansas can experience severe weather including tornadoes and flooding. Comprehensive insurance coverage and emergency preparedness are recommended.

Key Contacts & Resources