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The State of Arkansas has a total of eight metropolitan statistical areas (MSAs) that are fully or partially located in the state. 20 of the state's 75 counties are classified by the United States Census Bureau as metropolitan.

The Little Rock-North Little Rock-Pine Bluff Combined Statistical Area had 829,032 people in the 2006 census estimates and is the largest in Arkansas.

The Fayetteville-Springdale-Rogers metropolitan area is increasingly important to the state and its economy. The US Census estimated the population of the MSA to be 420,876 in 2006, up from 347,045 in 2000, making it the sixth fastest growing region in the nation. It is home to the corporate headquarters of Fortune 1000 companies Wal-Mart, Tyson Foods, and J.B. Hunt, as well as representatives of numerous vendors drawn by Wal-Mart. It is also home to the University of Arkansas and the Northwest Arkansas Regional Airport.

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The United States imposes an income tax on individuals, corporations, trusts, and certain estates. This tax is imposed on the income event, such as the receipt of wages. Another example of an income event is the realization of a gain on the disposition of property; that is, the appreciation on the value of property is not taxed until that property is sold (i.e., when the gain is "realized").

The U.S. income tax was first proposed during the War of 1812, but was defeated. In July 1861, the Congress passed a 3% tax on all net income above $600 a year (about USD 10,000 today). Income taxes were enacted at various times until 1894, but were not imposed after 1895 after an 1894 tax act was found to be unconstitutional. In response, the 16th Amendment was ratified in 1913. Ratification has been unsuccessfully disputed by some tax protestors claiming, among other things, that slight errors in punctuation in the various instruments ratified by the several states invalidates the ratification. Tax protestors have also made other arguments about the validity of the U.S. income tax, without success.

The 2007 individual federal income tax rates are between 10% and 35%, depending on income and family status. People with relatively low incomes may pay no income tax, or may receive earned income tax credits (tax benefits); however, this does not include income based payroll taxes that fund Social Security and Medicare. The Center on Budget and Policy Priorities states that three-fourths of taxpayers pay more in payroll taxes than they do in income taxes. IRS data indicate that the wealthiest 5% of taxpayers (ranked by AGI) paid roughly 60% of all income taxes; the bottom 50% of taxpayers account for just 3% of income taxes paid.

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