Benton County residents earn most investment income

New York-based fintech SmartAsset recently released a study that shows Benton County residents earn the most investment income in Arkansas based on net capital gains, ordinary dividends and qualified dividends.

The study developed an investment index using the three previous metrics that were sourced from IRS data. Benton County’s investment index was 14.36. Pulaski County residents earn the second most investment income in the state. Rounding out the top five counties in Arkansas are Washington (No. 3), Sebastian (No. 4) and Garland (No. 5).

Statewide, the average net capital gains, ordinary dividends and qualified dividends are $57,600, $59,185 and $54,800, respectively. By comparison, Benton County’s are $1.79 million, $3.41 million and $3.3 million. Pulaski County’s are $852,994, $340,986 and $260,598. And in Washington County, they’re $360,950, $134,703 and $110,854.

Nationwide, New York County was ranked No. 1 with an investment index of 100. Its metrics were $45.34 million, $13.21 million and $9.69 million, respectively. Los Angeles County was No. 2 with an investment index of 80.03. Benton County was ranked No. 27 nationwide, while Pulaski County was ranked No. 174.

Among the three metrics used in the study, Benton County was ranked No. 9 nationwide for its qualified dividends. They are dividends that meet certain requirements set by the IRS and are taxed at a lower capital gains tax rate, according to SmartAsset. By comparison, ordinary dividends are payments made by a company to their shareholders and are taxed as regular income. Capital gains refers to the amount an asset has increased or decreased in value. This is determined when the asset is sold.