Arkansas paycheck taxes at a glance
| Income tax on wages | Progressive, 0% – 3.7% |
|---|---|
| Standard deduction | $2,470 single · $4,940 married filing jointly |
| Personal exemption credit | $29 single · $58 joint · $29 per dependent |
| Minimum wage (2026) | $11.00 an hour (employers with 4 or more employees; tipped employees at least $2.63 plus tips) |
2026 Arkansas income tax brackets (single filers)
| Taxable income | Rate |
|---|---|
| $0 – $5,599 | 0% |
| $5,600 – $11,199 | 2% |
| $11,200 – $15,999 | 3% |
| $16,000 – $26,399 | 3.4% |
| $26,400 and up | 3.7% |
Example: a $65,600 salary in Arkansas
The median household income in Arkansas is about $65,588 (2025 data). Here's what one earner with that salary, paid every two weeks, filing single with no pre-tax deductions, would see on each paycheck in 2026:
| Gross pay | $2,523.08 |
|---|---|
| Federal income tax | −$218.92 |
| Social Security | −$156.43 |
| Medicare | −$36.58 |
| Arkansas income tax | −$74.60 |
| Take-home pay | $2,036.54 |
That's $52,950 a year in take-home pay, or 19.3% of gross pay going to taxes.
Take-home pay by salary in Arkansas
Single filer, paid biweekly, standard W-4, no pre-tax deductions:
| Salary | Per paycheck | Per year | State taxes | Total tax rate |
|---|---|---|---|---|
| $40,000 | $1,281.83 | $33,328 | $992 | 16.7% |
| $60,000 | $1,871.45 | $48,658 | $1,732 | 18.9% |
| $80,000 | $2,409.14 | $62,638 | $2,472 | 21.7% |
| $100,000 | $2,911.17 | $75,690 | $3,490 | 24.3% |
| $150,000 | $4,170.82 | $108,441 | $5,350 | 27.7% |
| $200,000 | $5,451.05 | $141,727 | $7,200 | 29.1% |
What changed for 2026
- The top income tax rate fell from 3.9% to 3.7% for the whole 2026 tax year. The Department of Finance and Administration posted revised withholding tables and a revised formula on May 29, 2026, both effective January 1, 2026.
- The standard deduction used in 2026 withholding is $2,470, and the personal tax credit stays at $29 per exemption.
Arkansas pay rules worth knowing
- Arkansas requires employers to pay wages semi-monthly, according to the U.S. Department of Labor's survey of state payday rules.
- The $11.00 state minimum wage, unchanged since January 1, 2021, covers employers with four or more employees.
How Arkansas taxes your wages
Arkansas starts with your wages, subtracts a standard deduction of $2,470, and looks up tax on the rest. Then it subtracts a $29 credit for each exemption you claim. The deduction and credit are both small, so most of your pay is taxable.
What makes Arkansas unusual is that the tax table depends on your income.
- Most workers use a graduated table: nothing on the first $5,600 of net taxable income, then 2%, 3% and 3.4% bands, and 3.7% on income above $26,400. That’s the table shown above, and it’s what the calculator uses up to about $94,700 of net taxable income.
- Higher earners move to a table that taxes only the first $4,700 at 2% and everything above it at 3.7%. That removes the benefit of the 0% band and the lower brackets. The state phases it in over roughly $3,000 of income, so there’s no sudden jump in tax.
- Low-income workers have separate tables that lower their tax further. The calculator doesn’t model those, so it may overstate Arkansas tax at very low incomes.
The 2026 rate cut and your withholding
Arkansas lowered its top rate from 3.9% to 3.7% for the 2026 tax year. The withholding formula the Department of Finance and Administration published for January 2026 still used 3.9%; the revised version, posted May 29, 2026 and marked effective January 1, 2026, uses 3.7%. If your employer withheld at 3.9% for part of the year, you’ll recover the difference when you file.
For a single worker at the state’s median household income of about $65,600, the lower rate cuts the year’s Arkansas tax by about $73. At $150,000 it’s about $286.
Texarkana’s exemption
Texarkana straddles the Arkansas–Texas line, and Arkansas law gives it special treatment. If your permanent home is inside the city limits of Texarkana, Arkansas, you’re exempt from Arkansas individual income tax. Residents of Texarkana, Texas, who work in Texarkana, Arkansas, are also exempt on those wages. To stop withholding, file Form AR4EC-TX with your employer.
Filling out Form AR4EC
Arkansas uses its own withholding certificate, Form AR4EC. The number of exemptions you claim sets how many $29 credits your employer subtracts each year, so update it after a marriage or a new child. The W-4 calculator helps with the federal side, and the salary calculator converts an hourly rate to annual pay for comparing offers.
Estimates only. Your employer’s payroll system, your W-4 and your Form AR4EC determine your actual paycheck.
How we calculate: Uses the rate table in Arkansas’s 2026 withholding formula, which reflects the 3.7% top rate for all of 2026. Arkansas’s separate low-income tax tables are not modeled, so tax may be overstated at very low incomes.
Sources
- Arkansas Division of Labor: Minimum wage and overtime
- U.S. Department of Labor: State payday requirements
- Arkansas DFA: Withholding tax formula, tax year 2026 (revised)
- Arkansas DFA: Withholding tax instructions for employers
- Arkansas DFA: Withholding tax forms and instructions
- Census Bureau: Household Income in States and Metropolitan Areas, 2025
- dfa.arkansas.gov
- dfa.arkansas.gov
- IRS Publication 15-T (federal withholding)
Frequently asked questions
How much does the 2026 rate cut save?
It depends on income. Comparing the January and revised 2026 withholding formulas for a single filer, the cut is worth about $22 a year at a $40,000 salary, about $73 at $65,600 and about $286 at $150,000. Because withholding used the old 3.9% rate until the tables were revised, part of the saving may arrive as a larger refund.
Why doesn't Arkansas use simple tax brackets?
Arkansas has different tax tables for different income levels. Most workers use a graduated table with rates of 0%, 2%, 3%, 3.4% and 3.7%. Above about $94,700 of net taxable income, a high-income table phases in, which taxes the first $4,700 at 2% and everything above at 3.7%. Low-income taxpayers have separate tables that lower their tax further.
I live in Texarkana. Do I pay Arkansas income tax?
Not if your permanent home is within the city limits of Texarkana, Arkansas. State law exempts those residents from Arkansas individual income tax. Texarkana, Texas residents are also exempt on wages earned in Texarkana, Arkansas. Give your employer Form AR4EC-TX so it stops withholding.
What is the Arkansas personal tax credit?
Instead of a personal exemption deduction, Arkansas gives a $29 credit against tax for you, your spouse and each dependent. You claim the number of exemptions on Form AR4EC, and your employer subtracts $29 for each from your annual withholding.
What is the minimum wage for tipped workers in Arkansas?
Employers covered by the state law can pay tipped employees a cash wage of $2.63 an hour, as long as tips bring total pay to at least $11.00 an hour.
Facts verified November 6, 2026. Estimates only; your employer's payroll system and your W-4 determine your actual withholding.