Due to Miller County's proximity to Texas, which has no state personal income tax, special taxation exemptions apply to residents with permanent addresses within the city limits of Texarkana. The Arkansas Department of Finance and Administration (DFA) requires taxpayers to submit the "Texarkana Employee's Withholding Exemption Certificate" with their Arkansas tax return. Taxpayers are exempt from Arkansas income tax, and residents of Texarkana, Texas are exempt from Arkansas income tax from any income earned within the city limits of Texarkana, Arkansas.